The Insurance & Annuities Channel

“Bad” Advice Can Add Value

I deal with many advisors. Some of them give advice that could be considered “bad,” but the benefit to their clients is tangible. Here are a few examples.

Fourth Quarter 2018 - The Year When Nothing Worked

2018 will be broadly remembered as a year when nothing worked and daily stock market volatility spiked. This contrasted with 2017 where seemingly everything pushed higher, and volatility was low. But in 2018, nearly every single asset class and all but one major stock market index (Brazil) around the globe posted negative returns.

Is Good News Bad or Good?

With unemployment below 4% (considered full employment by the Fed) and wage inflation pressure still positive, the Fed will want to continue to remove the stimulus from its policy. This means continuing to hike interest rates, albeit it at a reduced pace from the last two years.

Why Advisors Should Distinguish Base and Discretionary Expenses

The difference between base (mandatory or essential) and discretionary (voluntary or non- essential) expenses in retirement is fundamental and consequential. Properly making this distinction may be the most important decision in order to use assets efficiently and effectively in retirement income planning.

An Annuity Hater Revisits SPIAs

I take a lot of flak when I write about annuities. That criticism has come from the insurance industry, because I have been highly critical of products like fee-laden variable annuities with complex menus of riders. But recent discussions and a new analysis have led me to reconsider SPIAs as a source of longevity insurance at a reasonable cost.

Gold and Commodities Set to Soar in 2019

Goldman Sachs is bullish on commodities and gold, recommending an overweight position for both. The investment bank also raised its 12-month price forecast for gold up to $1,425 an ounce, a level last seen in August 2013.

Why Advisors Should Distinguish Base and Discretionary Expenses in Retirement

Some advisors fail to highlight the difference between expense categories and claim that clients do not see food, shelter, insurance differently than country club dues or vacation cruises, hence the expense categories are combined and called ‘lifestyle expenses’. In our view, this is a distortion of affluence.

Will the Real Market Please Stand Up

The markets have not been kind to investors lately. There were precious few bright spots in the recent quarter, and it seems there was nowhere to hide, except cash. Our instincts, however, tell us that cash is not a long-term solution.

Consumer Price Index: December Headline at 1.91%

The Bureau of Labor Statistics released the December Consumer Price Index data this morning. The year-over-year non-seasonally adjusted Headline CPI came in at 1.91%, down from 2.18% the previous month. Year-over-year Core CPI (ex Food and Energy) came in at 2.18%, down from the previous month's 2.21% and above the Fed's 2% PCE target.

Investing in Decisions

Richard Thaler and Emmanuel Roman discuss behavioral science and investing.

Trending Up: US SIF Report Finds $12 Trillion Invested in Sustainable Assets

Interest in environmental, social and governance (ESG) investing has reached a new threshold across U.S. money manager, institutional and retail spaces, according to the US SIF's biennial "Report on U.S. Sustainable, Responsible, and Impact Investing Trends" released last month.

How to Get Prospects to Understand More and Make Decisions Faster

There is a better way to get your prospects and clients to implement your suggestions and stop stalling.

Weekly Unemployment Claims: Down 17K, Better Than Forecast

This morning's seasonally adjusted 216K new claims, down 17K from the previous week's revised 233K, was better than the Investing.com forecast of 225K.

Sustainable Development Goals — What Are The SDGs?

The Global Goals for Sustainable Development (SDGs), officially known as “Transforming Our World: the 2030 Agenda for Sustainable Development,” consist of 17 goals and 169 targets that were created to end poverty, promote prosperity and well-being for all, and protect the planet.

A Massive Missed Opportunity

Fiduciary RIAs don’t advertise. It’s a massive, missed opportunity.