Annuity FYI Visitor Blog

After President Obama’s Middle Class Task Force began the process of promoting annuities, the US Department of Labor (DOL) and the Treasury have put out a request for information, according to Money Management Executive’s “Treasury, Labor Dept. Issue RFI on Annuities in 401(k)s.  They are seeking out information on the benefits and drawbacks of using 401k annuities transfers to secure retirement income for Americans.  Since participants receive income in lifetime installments with annuities, the Treasury and DOL want to ensure that this form will work the best for the most people.

The American Council of Life Insurers was already excited about the Obama administration’s promotion of using annuities in different types of defined contribution plans.  They said in a statement that they are happy to provide information about the products to the Treasury and DOL.  The Insured Retirement Institute (IRI) will also be putting together annuity information for the departments to use in their research.  The government worries that an increasing number of retirees are opting for lump sum payments of their 401k or other plans.  With annuities, they purchase the product with that retirement money and receive a stream of income payments monthly that are guaranteed over a lifetime.  The departments’ RFI will help them gather more information for government recommendations.

FINRA alerted investors last month about financial scams based on “green” companies.  Their Investor Alert, “Save Your Greenbacks-Don’t Fall for Green Energy Scams” describes how green energy scams work and how to avoid them.  Investments that promise huge gains by investing in alternative or renewable energy products should be looked at with a fine-toothed comb.  Since green energy initiatives are so popular right now, scam artists have emerged with “green” based Ponzi schemes and “pump and dump” stock fraud to try and get investors’ money.  This is happening through Twitter, text messages and webinars targeting investors looking to make a lot of money on something different.

The purchase of fixed annuities might be a wiser investment for you.  While you aren’t going to get rich quick with annuities, you can guarantee a stream of lifetime income to help pay your expenses.  Any investment that is recommended to you unsolicited should be fully researched and questioned, especially those promising enormous returns.  A recent “green” scam advertised a potential 1,000 percent jump in a company’s stock value.  As the old adage says, if it sounds too good to be true it probably is!  Another scam warning sign is the pressure to go “all in” with these investments.  A recent scam encouraged investors to liquidate all of their other investments and borrow against homes and businesses to put all of their money into a new “green” company.  It is crucial for investors to spot these potential scams before being financially hurt by dishonest people.

From the Financial Industry Regulatory Authority (FINRA)’s news release, the “FINRA Investor Education Foundation and the American Library Association Announce $1.5 Million in Grants to Public Libraries to Support Grassroots Financial Literacy.”  There are 19 libraries receiving the $1,522,122 through the program ‘Smart investing@your library’.  Providing the public with financial education information is the program’s goal.  This is the third year for ’smart investing@your library’, whose goal is to help library patrons with small and large financial decisions free of bias.

The library programs implemented with grant money are meant to help all ages of people, from youth just learning about money to senior citizens looking to compare annuities for retirement.  They also target low-income citizens and immigrants that are new to America with education programs.  The education programs include online learning, teaching in classrooms, individual clinics, and other online educational activities.  Libraries receiving these grants also partner up with other organizations to extend community education even further.  This includes schools, colleges, local government, and veterans clubs.

Grants are not only given in urban communities but also suburban and rural areas as well.  People often turn to free services like libraries when they are struggling economically.  With grants from FINRA and the ALA, libraries can better serve and educate these citizens about their finances and help to either get or keep them on track.  Whether they need information on annuities, credit cards, saving for college, or just budgeting; ’smart investing@your library’ is there to help and educate.

AXA Equitable Life Insurance Company has a new financial training program called “Cracking the Code,” according to PR-Canada.  AXA Equitable’s unit for annuity wholesale distribution, AXA Distributors, LLC, created this curriculum for professionals to continue their retirement income planning education.  The materials for self-study and presentations have been approved for continuing credits in 49 states.  Since growing savings before retirement is only half of the big picture, investors are looking to their financial advisers to help them make decisions that will keep them financially secure throughout their lifetime.  “Cracking the Code” aims to help advisers guide their clients from pre-retirement all the way into the asset distribution phase.

The “Cracking the Code” guidebook takes financial professionals through all the necessary steps to help their clients through retirement.  It explains how a client’s personal savings works into their retirement plan and information about IRA use.  There is also information regarding Social Security and Medicare benefits that affect retirees.  There are different strategies for dealing with risk including using the best annuities and other financial retirement products to guarantee future income streams.  Advisers will receive information about running a successful practice, such as help with marketing and time-saving tips.  With the use of AXA’s “Cracking the Code” information, advisers can be better equipped to help clients with every aspect of their retirement plan.

In the Chicago Sun-TImes, David Roeder describes why there is “Little payoff seeking the next Google.”  He summarizes some of the latest financial news and goings-on.  Financial guys on TV always seem to be looking for the next company that will start from nothing and skyrocket to success, like Google or Apple.  But looking into the past 10 or so years, the companies with the highest expected growth potential actually had the worst annualized returns.  It seems that the lowest expectations in the stock market actually provide for the best investments.  There are some large companies whose stocks are being recommended by Chicago Investment banks like William Blair & Co.  Others are looking to invest in products that teenagers love: food & entertainment included.

Companies like MetLife, Hartford Financial, and AIG look to benefit from the Obama administration’s new recommendations.  They are looking to introduce rules that will push retirees to 401k annuities rollovers.  Currently only 2% of people with 401k’s convert them to an annuity in retirement.  Since annuities help to counteract the risk of outliving one’s savings, the government believes that this guaranteed income will help Americans through retirement.  Finance information is all over the news and has even seeped into the entertainment world.  A new documentary entitled “Floored” about the Chicago trading floors is playing in Chicago.  With the renewed public interest in financial freedom, information about stocks, annuities, and retirement is at the forefront of America’s publications.