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☆ Annuity sales hit a record in 2023. Here's what to know about one popular option
▼ + stars: | 2024-01-30 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

Fixed indexed annuity sales brought in a record $95.6 billion, up from 20% from the record hit the year prior. Indexed annuities earn interest that is calculated based on the changes within a market index, such as the S & P 500 or the Nasdaq 100. However, they also receive downside protection: They are credited zero interest if the index their annuity is tracking declines. The term of index annuities typically range from three to 15 years, according to Annuity.org . Fixed indexed annuities can also be complicated, warned David Blanchett, head of retirement research for PGIM DC Solutions.

Persons: Bryan Hodgens, Buyers, Hodges, Cannex, Melody Evans, Evans, David Blanchett, Blanchett, DIAs Organizations: Nasdaq, Cannex, Products, Insurance, TIAA, DC Solutions, FIA Locations: Connecticut

☆ The Biden Administration wants to close a retirement savings 'loophole' that could be costing you 20% on your investments
▼ + stars: | 2023-11-01 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

The Biden administration is proposing a new rule to ensure people saving for retirement get the best advice possible. AdvertisementAdvertisementThe Biden administration is continuing its crackdown on junk fees — and this time, retirement savings are in the limelight. A new proposed rule by the Department of Labor would close what the administration calls "loopholes" in retirement advice, potentially saving retirees billions. However, some advisers steer their clients towards what's best for them, not the retirement savers, he said. Currently, the Securities and Exchange Commission has regulations mandating that investment advice needs to be in a saver's best interest.

Persons: Biden, Obama, —, DOL, that's, they're, LIMRA, Jason Berkowitz, Berkowitz Organizations: Service, Department of Labor, Securities and Exchange Commission, SEC, White, Federal Reserve, FTC, The Department, Labor Locations: pushback, Washington

☆ Biden administration to crack down on ‘junk fees’ in retirement plans
▼ + stars: | 2023-10-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Tom Williams | CQ-Roll Call, Inc. | Getty ImagesThe Biden administration is cracking down on so-called "junk fees" in retirement accounts. The "hidden costs" of financial conflicts in retirement plans amount to "junk fees," Lael Brainard, director of the White House National Economic Council, said during a press call Monday evening. watch now"It's time to get junk fees out of the retirement savings market," said Julie Su, acting secretary of the Labor Department, during the call. However, the Labor Department can regulate them if sold in a retirement account, according to a Biden administration official speaking on background. It's time to get junk fees out of the retirement savings market.

Persons: Julie A, Su, Tom Williams, Biden, There's, Lael Brainard, Julie Su, Sen, Bill Cassidy, Virginia Foxx, Anna Moneymaker, Obama Organizations: Labor, Health, Education, Washington , D.C, CQ, Inc, Getty, U.S . Department of Labor, Finance, Securities and Exchange Commission, Congressional Research Service, White, National Economic Council, Labor Department, Rep, Economic, SEC, Biden, Department of Labor Locations: Washington ,

☆ High interest rates make these guaranteed-income products attractive. Here's what to know about fixed annuities
▼ + stars: | 2023-08-08 | by ( Michelle Fox | ) www.cnbc.com time to read: +7 min

Americans have flocked to annuities for guaranteed income over the past year, as interest rates rose and investors looked for safety amid the market turbulence and recession concerns. One of the popular products has been fixed-rate deferreds which — as the name implies — provide a fixed rate for a specific period of time. "So that opportunity to get a more competitive rate on a fixed annuity is not an indefinite window." Multiyear guaranteed annuities Traditional fixed annuities typically guarantee the rate for a portion of the contract, while a multiyear guaranteed annuity, or MYGA, has a rate of return that is guaranteed over the duration of the contract. When buying a fixed annuity, investors need to figure out the term that works best for them, said Limra's Hodgens.

Persons: we've, Bryan Hodgens, Doug Ornstein, David Blanchett, TIAA's Ornstein, Ornstein, Limra's, " Blanchett Organizations: TIAA Wealth Management, Federal Deposit Insurance Corporation, guaranty, DC Solutions, Insurance, TIAA Institute, Social Security Locations: Connecticut

☆ While investors can't expect a deal like former baseball star Bobby Bonilla, they can use an annuity to create a stream of income in retirement
▼ + stars: | 2023-07-01 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +3 min

Infielder Bobby Bonilla of the MLB's New York Mets at a game against the Los Angeles Dodgers at Dodger Stadium, July 25, 1993. Stephen Dunn | Getty Images Sport | Getty ImagesFormer Major League Baseball player Bobby Bonilla collects a $1,193,248.20 check from the New York Mets every July 1, and he'll continue to do so until 2035. In fact, ever since, July 1 has been known as Bobby Bonilla Day. Annuities provide a guaranteed stream of incomeAn annuity is a lump sum of money, often taken out of a retirement plan, which is converted into a future stream of income, or annuitized. The allure for investors is a guaranteed stream of income, much similar to Social Security or pensions.

Persons: Bobby Bonilla, Stephen Dunn, hasn't, Bonilla, they've, Louis Barajas, Limra, Barajas Organizations: New York Mets, Los Angeles Dodgers, Dodger, Getty, Major League Baseball, Mets, International Private Wealth, CNBC's, Finance, Social Security, ., Barajas, American Council of Locations: Irvine , California, Barajas

☆ What Is Cash Value Life Insurance and Is It Worth It?
▼ + stars: | 2023-06-09 | by ( ) www.wsj.com time to read: +10 min

What is cash value life insurance? Although you’ll see insurance companies advertise various life insurance products, all policies can be divided into two categories: term and cash value. How your policy’s cash value worksCash value life insurance is so named because of its ability to build cash value. Types of cash value coverageThere are two main types of cash value insurance:Whole lifeWhole life insurance is the most popular form of cash value insurance. Universal lifeUniversal life policies are more flexible than whole life policies.

Persons: Kat Tretina, you’re, PolicyGenius, Jay Zigmont, “, they’re, ” Zigmont, Andrew Latham, you’ll, ”, Latham Organizations: Universal, American Council of Locations: Water Valley, Miss, Santa Ana, Calif

☆ Guaranteed lifetime income gains appeal amid worries a recession is coming
▼ + stars: | 2023-05-23 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

More retirement plans to offer annuity optionsThe passage of the Secure Act also made it easier for employers to offer annuities as one retirement savings plan option. Starting in the fall, Fidelity will let plan participants convert some of their retirement savings into an immediate income annuity to provide pension-like payments throughout retirement. BlackRock and State Street Global Advisors, two of the largest asset managers, also announced target-date funds with retirement income annuity options. Having an annuity option when you retire is a good thing. Annuity sales hit a record in 2023Annuity sales hit an all-time high in the first quarter of 2023, up roughly 50% from a year ago, according to Limra, an insurance industry trade group.

Persons: Susan Neely, Mark McCombe, Carolyn McClanahan, Todd Giesing Organizations: Fidelity, Fidelity Investments, BlackRock, Street Global Advisors, Planning Partners Locations: Jacksonville , Florida

☆ Fewer Adults Have Life Insurance, but Skipping It Can Be Risky
▼ + stars: | 2023-05-15 | by ( ) www.wsj.com time to read: +11 min

But financial planners say a basic life insurance policy, especially products known as term life insurance, should be an important part of many Americans’ financial plans. A life insurance policy:Replaces lost income: If you were to pass away, your family could use your life insurance policy’s death benefit to replace your income. How to shop for life insuranceIf you’re ready to start shopping for a life insurance policy, follow these steps:1. According to PolicyGenius, an insurance marketplace, typical rates for a whole life policy, the most common type of permanent life insurance, are about 10 times the cost of a term life policy. Term Life Insurance Because term life insurance expires, it's often a far cheaper option.

☆ Annuity sales hit record last year, eclipsing sales during 2008 financial crisis amid fear, higher rates
▼ + stars: | 2023-02-02 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

"This was a unique year," Todd Giesing, assistant vice president of Limra Annuity Research, said of the factors that combined to drive record annuity sales. Advisors often recommend some lesser-used annuity types when building financial plans: a single-premium immediate annuity or a deferred-income annuity. Payouts from immediate annuities start right away, while those from deferred-income annuities start later, perhaps in a retiree's 70s or 80s. Single-premium immediate annuities and deferred-income annuities are relatively simple to understand compared with other categories, advisors said. The buyer hands over a lump sum to the insurer, which then guarantees a certain monthly payment to the buyer starting now (an immediate annuity) or later (a deferred-income annuity).

☆ What to do when your term life insurance is ending
▼ + stars: | 2023-01-31 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

Almost 20 years ago, the 64-year-old Westfield, New Jersey, resident took out a term life insurance policy, to help cover his family in case the worst happened. Remember there are different types of life insurance on the market, and those with "permanent" versions do not face this conundrum. PURCHASE A NEW TERM POLICYIf your first term policy is winding up, and you are still in excellent health, shop around for a new term policy. "Can you convert the term life policy to a permanent policy?" "If you can obtain long-term care benefits as a rider through another life policy, that may the way to go."

Financial experts highly recommend term life insurance for young families with dependents, especially when one spouse is a primary breadwinner. Having a life insurance policy on a non-working partner allows the other to outsource some of these domestic responsibilities. Too many Americans are underinsuredIn a study by the Life Insurance Marketing and Research Association, just 52% of Americans had life insurance in 2021, down from 63% in 2011. If the answer to either of these questions is yes, getting a term life insurance policy is worth considering. I'm thankful that my two friends were wiser than I was at 27 and got term life insurance to protect their young family.

With the tax-advantaged investing component of a permanent life insurance policy, life insurance is the gift that keeps giving. Life insurance is more affordable than you may thinkPerceived cost is one factor that deters people of color from buying adequate life insurance. Unfortunately, we've seen licensed life insurance agents who still tell buyers term to whole conversions are "guaranteed," or rates will stay the same in those life insurance conversions. Life insurance doesn't have to cost a pretty penny, and life insurance is constantly changing. Permanent life insurance is generally more expensive than a term life insurance policy and can vary highly based on various factors.

My husband and I are in our mid-30s and have term life insurance policies worth $2 million. My husband has roughly $1.6 million in life insurance, both via his work policy and an independent one. Both his and my policies are term life insurance, though we will eventually upgrade to a whole life policy. While our total monthly life insurance cost is $100, to me, it's a worthy spend. According to the Life Insurance Marketing and Research Association (LIMRA), just 52% of Americans had life insurance in 2022, most to protect their families from unpaid debt, pass down generational wealth, or replace a primary earner's wages.

☆ Stock Selloff Hits Life Insurers’ Fastest-Growing Product
▼ + stars: | 2022-12-24 | by ( Leslie Scism | ) www.wsj.com time to read: 1 min

The hottest thing in life insurance for more than a decade might be cooling off. A long-running stock-market rally and low interest rates combined to create the perfect conditions for indexed universal-life policies. Sales of these policies rose from 4% of life-insurance sales in 2008, as measured by new annualized premiums, to 28% in the third quarter, according to industry-funded research firm Limra.

☆ ‘Ugly times’ are pushing record annuity sales. Here's what you need to know before you buy
▼ + stars: | 2022-10-26 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

How to know if an annuity makes sense for youFinancial advisors often recommend using a different flavor of annuity when building financial plans: a single-premium immediate annuity or deferred-income annuity. Payouts from immediate annuities start right away, while those from deferred-income annuities starts later, perhaps in a retiree's 70s or 80s. Single-premium immediate annuities and deferred-income annuities are relatively simple to understand compared with other categories, advisors said. By contrast, consumers can't get back principal when they buy single-premium immediate annuities or deferred-income annuities. This is one likely reason consumers don't buy them as readily, despite their income efficiency, Giesing said.

☆ These simple and low-risk assets will give you attractive returns as the Fed raises rates
▼ + stars: | 2022-09-20 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +4 min

The Federal Reserve's rate hikes may be wreaking havoc on investors' stock portfolios, but it's suddenly giving them lots of options offering safe and high returns. The rates on all sorts of fixed income products are surging because of the Fed's actions, giving frazzled stock investors lots of steady alternatives now. Short-term U.S. Treasury bonds U.S. Treasury bonds are often a hedge for stock market volatility, but longer-term ones are taking a hit as interest rates rise. I-bonds Series I savings bonds have been a popular bet for investors this year because they're surging along with inflation and have very little risk. High yield savings accounts will generally have the lowest rates of return but do benefit as the Fed raises its benchmark interest rates.

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