Manulife hedging wins fans Nov 8, 2008
6-billion reserve against seg funds and annuity products in the midst of October's meltdown ... Despite management's concerns about hedging practices (high costs, ineffectiveness), management acknowledged that all new variable annuity [VA] sales are being hedged, said Credit Suisse's Jim Bantis in a note Friday. (Globe and Mail)
Securian Gives Advisors Tools to Combat Their Biggest Competition - Client Debt Nov 6, 2008
"Our research shows that debt is the barrier to saving for retirement at all ages," said Kerry Geurkink, director, Annuity Marketing, Securian Financial Group, Inc. "Advisors help their clients prepare for retirement. That's why we say their biggest competition for the client's time and attention is the client's debt." Securian is equipping advisors with a program aimed at helping their clients assess debt and develop a strategy for paying it down while building retirement reserves. "Life after... (PR Newswire)
Ask Matt Krantz: Stocks Nov 6, 2008
"Distributions received before age 59 1/2 are subject to an early distribution penalty of 10% additional tax unless an exception applies. For more information about the treatment of retirement plan distributions, refer to Publication 575, Pension and Annuity Income.". Even high-yield savings accounts are paying less than 3% now. (USA Today -- Money)
Boomers On Shakedown Street Nov 3, 2008
Further, options similar to riders available with variable annuity contracts that offer optional minimum withdrawal or minimum income guarantees need to be included. Eliminating--or at least reducing--financial fear is the key to investor participation. (Forbes)
Reporting IRA withdrawals Nov 2, 2008
If the stocks and funds would all generate a capital gains tax bill upon sale, compare that tax with the income tax generated by withdrawing money from your IRA or annuity accounts. Last, but not least, I'll ask you the same question I ask others about to buy a second home -- are you sure you want to do this. (Casper Star-Tribune, WY)
Forming a Club to Share Financial Wisdom Nov 1, 2008
In last week s column, I compared the 10-year performance of $100,000 in a typical index annuity with the return of a Standard & Poor s 500-stock index fund ... According to Vanguard, if you had reinvested the dividends in its fund, you would have ended up with $95,870, still nowhere near the $176,478 that the annuity would have delivered. (Atlanta Journal-Constitution -- Business)
Equity release enters the mainstream Nov 1, 2008
In the annuities market, we carried out a survey and when we asked people if they knew what an annuity was, those who said yes were given a choice of five definitions - 65 per cent picked the wrong option for what an annuity is and equity release is a very similar thing, which is why it s so important to get advice. Andrea: Does any mistrust remain of the product from its less well regulated time in the early 80s. (What Mortgage, UK)
Cigna guidance, quarterly earnings fall Oct 31, 2008
Cigna suffered a $44 million loss, or 47 cents per share, from two parts of that business: variable annuity death benefits and guaranteed minimum income benefits. The expected fourth-quarter loss of 45 cents per share in the variable annuity business was cited as the reason for lowering operating income guidance. (Philadelphia Business Journal, PA)
Time Bombs In The Economy Oct 31, 2008
The rationale for the government investing in the insurers ala the banks is to allow takeovers of sellers of variable annuity products that have been so popular with private investors. This is a guess on my part but better to make an investment in, say, MetLife so they can buy "XYZ" and probably a far cheaper way to provide support to the system. (Forbes -- Markets)
Should demand for change include 401(k) plans? Oct 31, 2008
When they begin collecting Social Security, the retirement account would be converted to an annuity, providing a guaranteed monthly check for life. Combined with Social Security, the retirement account of a full-time worker with 40 years on the job retiring at 65 should provide 70 percent of preretirement income, Ghilarducci said. (AZCentral -- Business)
Cigna reports 53 percent drop in 3Q profit Oct 31, 2008
The company incurred losses totaling 47 cents per share from two parts of that business: variable annuity death benefits and guaranteed minimum income benefits ... Cigna said those losses plus an expected fourth-quarter loss of 45 cents per share in the variable annuity business prompted it to lower operating income guidance for 2008 to a range of $3 ... He also noted that the quarterly hit from the variable annuity death benefit was not catastrophic and shouldn't recur unless the market takes... (San Diego Union-Tribune -- Business)
California Focus: October surprise: Dems ignore Keating-McCain links Oct 29, 2008
The paperwork was started and then the news broke some months later, her estimated annuity payments from her pension plan should have yielded her a little over $4000. 00 projected monthly retirement income if she lived another 30 years. (Hanford Sentinal, CA)
Weighing an Investment That Promises No Risk Oct 25, 2008
It s called an equity index annuity, or index annuity for short. And if your response to the word annuity is to move your eyeballs elsewhere on the page, please at least give me a shot at explaining why this is important ... And this particular type of annuity has been the subject of lots of regulatory scrutiny and the target of numerous lawsuits. (Atlanta Journal-Constitution -- Business)
Reinsurance Group of America profit drops Oct 25, 2008
This loss is a result of widening credit spreads on the investment portfolios underlying certain funds withheld annuity reinsurance treaties, RGA said. The company s revenue in the third quarter increased to $1. (St. Louis Business Journal, MO)
Microsoft Posts 2% Increase in Net Income Oct 24, 2008
Microsoft said multiyear annuity sales grew more than 20% during the quarter from its Client, Microsoft Business Division and Server and Tools. Looking out to its fiscal second quarter and full year targets, Microsoft tempered its expectations citing the uncertain economic climate. (Fox News)
Autumn Grooms: Should teachers have to live in district? Oct 24, 2008
Myturn wrote on Oct 24, 2008 8:26 AM:" This article has subliminally evolved into a damage control piece for the Lacrosse School System. The Lacrosse School System has the vast majority of their budget involved in Pay/Benefits for it's employees. That includes a 11.7% matching payroll contribution for retirement. along with that others like Kember receive another $10.5k additionally in an annuity for retirement. Then they receive 80% of their last health insurance premium after early retirement... (La Crosse Tribune, WI)
Center Bancorp, Inc. Reports Increase in Third Quarter 2008 Earnings Oct 24, 2008
CENTER BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION (unaudited) September 30, December 31, (Dollars in Thousands) 2008 2007 --------------------------------------------------------------------- ASSETS Cash and due from banks $ 15,952 $ 20,541 Federal funds sold and securities purchased under agreement to resell 0 49,490 --------------------------------------------------------------------- Total cash and cash equivalents 15,952 70,031... (Primezone Releases)
U.S. woes hammer Sun Life Oct 22, 2008
Likewise, if you're in the variable annuity and segregated fund businesses, depending on product design and a whole bunch of other factors, you're likely to see some impact. . (Globe and Mail)
Your Personal Bailout Check Isn't in the Mail Oct 20, 2008
Vehicles are needed that are not only tax-free upon withdrawal -- most 401(k) and all annuity proceeds are taxable -- but guaranteed to index the rate of inflation. There are only a handful of privately offered products doing that today. (Bloomberg -- Columnists)
Financial Facelift: Sustaining solid income in volatile financial markets Oct 20, 2008
In exchange for a capital sum, the price of the annuity, they pay a predetermined income for the life of the buyer, the annuitant, or the buyer and spouse whatever is decided ... If Bob were to buy a joint and last-to-die annuity for $500,000, it would provide $28,536 a year ... Because neither Ruth nor Bob have company pensions, an annuity would give them the assured income that they need to maintain their retirement spending, Ms. Nalbantoglu says. (Globe and Mail -- Business)
Horace Mann picks N. Texas Oct 18, 2008
The company reported annual revenue of $887 million in 2007, including results from its property, casualty, life and annuity lines of business. The 205,000-square-foot building where Horace Mann is moving into was constructed by without specific tenants in mind and completed more than a year ago. (Dallas Business Journal, TX)
Mutual Funds &Personal Finance Oct 18, 2008
One example is the grantor retained annuity trust (GRAT) ... At the outset, you set up an annuity-like stream of income ... Those are people now collecting a GRAT annuity. (Investors Business Daily)
Keeping your money safe Oct 17, 2008
My question to you is, why do you have your IRA in an annuity ... So is a variable annuity ... When you put your IRA in an annuity, you get no added tax benefit, and you typically pay higher annual fees. (USA Today -- Money)
Nothing quiet in retirement Oct 17, 2008
162 billion, $1 billionof this being the net present value of annuity streams, over three times the size of Stockland's $321 million retirement assets. send photos, videos & tip-offs to 0424 SMS SMH (+61 424 767 764), or us. (Sydney Morning Herald -- Business)
Legal & General sales up 5 pct but outlook mixed Oct 16, 2008
Bulk annuity sales more than trebled in the period but the company cautioned that market instability had made it difficult to estimate future income on such investments, leading to delayed completion of larger deals in recent weeks ... Analysts see weakening bulk annuity sales as a cause for concern ... KBW has revised its estimates for L&G missing new business contributions by 9 percent, pushed lower by annuity sales and adjusted product mix. (International Herald Tribune -- Technology)
Ask the Experts Oct 14, 2008
Is it true that the law now allows those who emigrate to take their retirement annuity out of the country even before you actually retire ... Firstly, the Income Tax Act has been amended to include a section that allows for a member who factually emigrates (the emigration being recognised by the South African Reserve Bank) to withdraw her or his benefit from the retirement annuity and terminate the membership ... Secondly, where such a retirement annuity benefit has been withdrawn on emigration,... (iAfrica.com)
Manulife expects C$250 mln charge on credit losses Oct 14, 2008
4 billion to protect against any shortfall in its variable annuity and segregated funds businesses. At the end of third quarter, the reserve is expected to be at a level exceeding 90 percent, but it warned that earnings for any period would shrink if it had to build up the reserve. (guardian.co.uk)
Advice for men and women about women's financial security in retirement Oct 11, 2008
In all states, guaranty associations belonging to the National Organization of Life and Health Guaranty Associations back income annuity obligations up to a limit ($100,000 or more per company depending on the state) per policyholder if an insurance company goes bankrupt. Humberto Cruz is a syndicated columnist. (Boston Globe)
ACLI President & CEO Frank Keating Comments on AIG's California Event Oct 11, 2008
" The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 353 member companies account for 93 percent of the life insurance industry's total assets in the United States, 93 percent of life insurance premiums and 94 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection... (PR Newswire)
Economy Has Lottery Winners Thinking Twice Oct 10, 2008
Lottery spokeswoman said she can't remember a Mega Millions winner in ever taking the annuity payments since the game was launched in 2002. The last Michigan resident to claim an annuity won the Million Dollar Raffle last January. (NBC 11, CA)
Oct. 9 edition: Obituaries Oct 10, 2008
Formerly of Tenafly, N.J. and recently living in Acton, near his family, he was a former president of the Financial Analysts Federation, vice president of the Teachers Insurance and Annuity Association, assistant treasurer of Esso International, and an investment manager for Standard Oil. In addition, he was a member of the Advisory Council, Financial Accounting Standards Board, a member of the Board of National Missions for the United Presbyterian Church USA, and a member of the United... (Acton Beacon, MA)
Group of 22 Postal Workers Share $10.2 Million Powerball(R) Jackpot Prize Oct 8, 2008
The "Lucky 22's" single-winning jackpot ticket matched all five white balls, 01-04-26-32-39, and the red Powerball, 18, to win the Oct. 4 jackpot, which grew over two drawings to an annuity value of $20 million. The group elected to share the $10. (PR Newswire)
GOLD-PLATED PENSIONS Oct 8, 2008
These figures don't necessarily include all the annuity payments that retired teachers can also receive. Nor do they include the value of free health coverage available to the vast majority of all city retirees and their dependents. (New York Post -- Opinions)
J.G. Wentworth Announces: Liquidity Options for 'Illiquid' Financial Assets -- What Personal Finance Advisors Need to Know to Address Clients' Concerns Oct 7, 2008
Since 1992, J.G. Wentworth has purchased over $3 billion of future payment obligations from consumers and is also the nation's largest securitizer of structured settlement and annuity backed notes. The company's notes are rated AAA by Standard & Poor's Corporation. (Primezone Releases)
At Cradle of Liberty, activists rally around antitax message Oct 6, 2008
It would also end the tax on interest and dividends for those living on an annuity, and end a capital gains tax on house, business, and stock sales. Nine other states have no income tax - Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Tennessee, Washington, and Wyoming, according to the Internal Revenue Service. (Boston Globe)
Sun Life Financial announces the sale of its 37% interest in CI Financial Oct 6, 2008
Factors that could cause actual results to differ materially from expectations include, but are not limited to, the performance of equity markets; interest rate fluctuations; investment losses and defaults; movements in credit spreads; the cost, effectiveness and availability of risk mitigating hedging programs; the creditworthiness of guarantors and counterparties to derivatives; risks related to market liquidity; changes in legislation and regulations including tax laws; regulatory... (Canada Newswire)
Most unprepared for retirement Oct 6, 2008
The elder study determined that if $100,000 were used to buy a single-life annuity, the annual income for a 65-years-old man would be $8,000. And Brucker urged all to save. (The Delaware County Times, PA)
On Your Mind: A readers' comment section Oct 6, 2008
That the annuity payments to the retirees would never be taxed as income. I am disheartened by the obscene, and sometimes hateful, vehicle graphics some people have. (Sierra Vista Herald, AZ)
Not a happy camper Oct 6, 2008
Question: I have a friend who bought a living annuity from Alexander Forbes ... Can she transfer the living annuity to another service provider ... She is considering returning to the UK. Is there some way she could transfer the living annuity to a service provider in the UK instead of taking a drawdown in South Africa and transferring it to the UK. (iAfrica.com)
Pennsylvania Sells $20 Million Winning Powerball Jackpot Ticket Oct 5, 2008
The jackpot has an annuity value of $20 million and a cash value of $10 ... The winner has 60 days from the date he or she claims a prize to decide between a $20 million annuity paid in 30 installments over 29 years or a one-time payment of $10 ... The Powerball jackpot returns to an estimated $15 million annuity and an estimated $7. (PR Newswire)
Business Briefcase (21) Oct 4, 2008
A multi-line company, Pekin Life Insurance Co. offers individual and group life and health products, including term, universal life, major medical, Medicare supplement, annuity, credit life and pre-need coverages in Illinois, Indiana, Iowa, Ohio and Wisconsin through its independent agency network. Information about Pekin Life Insurance Co. can be obtained by visiting www. (DeKalb Daily Chronicle, IL)
For a 71-year-old, financial decisions are literally a calculation about life and death Oct 3, 2008
I still work part time, so my income is sufficient with Social Security, a small pension, and an annuity ... I'm thinking of rolling over $100,000 from my retirement account with into an immediate lifetime annuity where payments can be delayed for 13 months ... Your annuity purchase will be a reasonable return investment if you live to expectancy. (Boston Globe)
What is Formula B? Oct 3, 2008
Without getting even more technical, you may also increase the R300000 if you had any retirement annuity contributions which were at no stage deductible for income tax purposes ... Just remember that the general rule is that you may not take more than a third of a retirement annuity benefit as cash. (iAfrica.com)
Property sellers can defer taxes through structured sale options Sep 25, 2008
These include private annuity trusts, charitable remainder trusts and 1031 Exchanges. Jamie M. Adams, regional vice president of East Brunswick, N.J.-based Capital Creative Inc., which is active in the structured settlement/structured sales business, explains another alternative the structured installment sale. (Houston Business Journal, TX)
'Pensions by postcode' will hit middle class Sep 23, 2008
It insisted that 75% of customers who converted their pension pot to an annuity would be the same or better off under the new system ... Under Norwich Union's previous calculation, a 65-year-old man with a 100,000 pension pot would receive an annual income of 7,668 with an annuity ... Darren Dicks, head of annuity marketing, said the bands were calculated using the typical number of financial products used by residents in each postcode, including pensions, shares and savings. (This is Money)
VARs want in on Oracle software maintenance agreements Sep 23, 2008
Some software companies let partners participate in the annual software maintenance "annuity." ... Some of those acquired companies let partners participate in the software maintenance agreements' annuity, so Oracle's model is an unpleasant contrast, Oracle partners said ... Some software companies let partners participate in the annual software maintenance "annuity.". (SearchOracle.com)
> AIG collapse would have cost N.C. $1 billion Sep 20, 2008
That s because seven AIG subsidiaries also write life and health policies and various annuity plans in North Carolina. On the annuity front alone, AIG s Sun America, at the beginning of 2007, was the state s third-largest annuity writer at $331 million, giving it a market share of nearly 6 percent ... Another subsidiary, AIG Annuity Insurance, had $46 million on its books, for a market share of nearly 1 percent. (Charlotte Business Journal, NC)
The problem with Palin and the elites Sep 19, 2008
" I still wish I did. You know what's really good about a 401k or other privitized retirement account? You can roll it over into an annuity when market conditions are favorable, vs. when some government bureaucrat says so. And now is the time to buy. Prices are low. Yep, I'd do it in a heartbeat. ". cross1242 wrote on Sep 17, 2008 10:35 AM:" "the_bat" @ Sep 17, 2008 1:27 AM said, "what they really mean is billions in tax increases as they take over more and more of the economy. (Waterloo-Cedar Falls Courier)
Investing: Surviving the Wall Street Quake Sep 19, 2008
"If you have a guaranteed annuity by AIG, what does that mean today? Those are people that the government doesn't want to get hurt," he says. His worry was that if the shares closed below $5 on Sept. 15, it would accelerate ratings downgrades and invite predatory buyout offers from entities that would force the company to dispose of assets that generate the most revenue. (BusinessWeek)
How safe is your insurance policy? Sep 18, 2008
AIG sells virtually every type of insurance, including auto, home, life and health under names such as American General, 21st Century and the Variable Annuity Life Insurance Co. (known as Valic) ... The limits vary somewhat by state, but in California they are $500,000 for property/casualty insurance, $200,000 for health policies, $250,000 in life insurance death benefits, $100,000 in cash surrender value on life insurance and $100,000 on the present value of annuity benefits ... In the case of... (San Francisco Chronicle -- Business)
LETTERS: NCT, Sept. 17, 2008 Sep 18, 2008
AIG pays out annuity payments to old ladies, who combine it with their Social Security and manage to pay their monthly assisted living and drug bills. If AIG were allowed to disappear, what would you do with the old ladies. (North County Times)
How Wall St. thanks us Sep 18, 2008
There are a lot of little old ladies who live off of annuity payments from AIG. Also, there are a lot of people who depend on a wage earner who s life is insured by AIG.. By RW-(the original). (Atlanta Journal-Constitution)
Life insurance sector next? Sep 18, 2008
Americans who have ploughed their savings into life insurance and annuity-linked pension funds were running scared on Wednesday as financial titans collapsed around them ... "Given what's happening with AIG and Lehman Brothers, people are looking at their life insurance and annuity products and are concerned about these companies going under and what the impact would be on them," he said. (iAfrica.com)
More of this story Sep 17, 2008
The average citizen in Southeast Arkansas with investments in annuity accounts and the real estate market could feel the ripple effects, said Campbell. If, for example, the Teachers Insurance and Annuity Association-College Retirement Equities Fund, a major insurance corporation, were not able to recover from a financial struggle, it would result in uncertainty of retirement funds for some educators, said Campbell. (Pine Bluff Commercial, AR)
Dividing lines over land use Sep 17, 2008
He said the county's share of lost property taxes the first year would be 58,000, but as a 20-year annuity that would be more than 1 million. But this is not a 20-year annuity, this is in perpetuity, he said. (Santa Maria Times)
Renters: Better to be Safe Than Sorry Protecting Property Should be a Priority for Renters too Sep 16, 2008
The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers. Customers can also access information about Allstate Financial Group products and services at myallstatefinancial. (PR Newswire)
Protection for AIG Customers Sep 16, 2008
"My plan was to liquidate the annuity, no matter what the penalty was going to be because it just doesn't sound good," the 60-year-old psychologist said ... Bailing out of an AIG annuity or life-insurance policy may offer psychological comfort, but may not make financial sense, some experts say ... For life-insurance policies and annuity contracts, death benefits generally are guaranteed up to $300,000; $100,000 for cash surrender or withdrawal value of life insurance, $100,000 for withdrawal... (Wall Street Journal)
School referendum a go Sep 16, 2008
Myturn wrote on Sep 16, 2008 8:14 AM:" The City of Onalaska came to their taxpayers and told them they were going to save them 20% on a School employee benefit. They were going to transfer employees over from a conventionally funded benefit to an annuity. What they did not tell them is their present benefits had huge pending funding shortages, and the 'new' annuity's would have to be 'front loaded'. The problem these School System Leaders made is that they should have called the shortage "Safety... (La Crosse Tribune, WI)
AIG looking at 'options' for businesses, capital Sep 16, 2008
AIG operates a range of insurance and financial services businesses ranging from property, casualty, auto and life insurance to annuity and investment services. New York-based AIG turned down a capital infusion from a group of private-equity firms because it would have effectively given them control of the company, the Journal said. (San Diego Union-Tribune -- Business)
Retirement Wreckers Sep 15, 2008
Adds Joseph, "If they are legitimate, they will put it in an annuity, for example, that has high costs, high surrender charges and high up-front fees. That's if they are legitimate. If they are not legitimate, they will just spend your money. Then you're broke.". Although individuals aged 60 or older make up just 15% of the U.S. population, they account for 30% of fraud victims, according to the North American Securities Administration Association. (Forbes)
All annuities are insurance products, but they are not all created equal Sep 13, 2008
Q. I would like to know the difference between a variable annuity and a life annuity. A few years ago I invested $100,000 in a tax-deferred variable annuity ... Is a life annuity tax-deferred. (Boston Globe)
World's mega cities expand as millions quit the countryside Sep 13, 2008
life insurer in the northeast has a need for an experienced life insurance or annuity actuary. the incumbent will assists in product development, financial. (Yahoo News -- Population Issues)
Bank annuity commissions and fees up 13 percent Sep 11, 2008
Bank annuity commissions and fees hit $539 ... PNC Bank, part of , Pittsburgh, ranked sixth on the list of the top 10 banks as ranked by year-to-date mutual fund and annuity fee income, but had a higher percentage increase over last year than the five that preceded it. (Pittsburgh Business Times, PA)
Julian Roberts sets deadline for Old Mutual Sep 11, 2008
He refused to rule out further writedowns against hedges on guaranteed annuity policies that have gone wrong ... 2 million) against guaranteed annuity products sold to Asian investors that it had failed to hedge properly. (Times Online)
'Tis the Season -- To Be Worried Sep 11, 2008
You can also visit my , where you'll find out about exciting new retirement income products such as the Ameritas No-Load Variable Annuity with the Guaranteed Lifetime Withdrawal Benefit Rider, issued by my friends at Ameritas Life Insurance Corp.. The income coach is now officially on duty, so put me to work for you today. (Human Events Online)
