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Obama To Highlight Annuities - Regulatory,Legislative and Tax Issues - Life and Health Insurance News
He finally does something good.
He finally does something good.
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Scott, thank you for sharing.
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Well that sounds all well and good but the problem is now most of the people in the country can't stand the guy............now if the government recommends something it kind of makes on wonder.........
That Wharton School Of Business had a pretty good article on annuities.
That Wharton School Of Business had a pretty good article on annuities.
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The article you might be referencing, and that I found useful (yet perhaps too complex for average clients) is called "Real World Index Annuity Returns." Jack Marrion is one of the authors.
Wharton Financial Institutions Center - Oct 5, 2009.
Wharton Financial Institutions Center - Oct 5, 2009.
http://http://www.nytimes.com/2010/01/30/your-money/annuities/30money.html
There was a NYT article also covering this last week called 'the unloved annuity gets a hug from blobama'
There was a NYT article also covering this last week called 'the unloved annuity gets a hug from blobama'
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There's some really good info in that article. You could certainly take excerpts of it to use in a client presentation...
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I think the real plan may really be to grab IRAs and 401Ks and give people a govt run annuity rider. i.e. another version of the social secuity ponzi scheme.
Argentina did this last year.
We are at least $14 trillion in debt and private savings is around $12 trillion.
Pajamas Media Coming Soon: Substituting Government Annuities for Your 401(k)?
Back around the last Election Day, far-left Congressmen George Miller and Jim McDermott floated the idea of ending the 401(k) tax break in favor of “redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.”
The left has always hated private retirement accounts. First of all, they’re, you know, private, meaning the government doesn’t control them, and we can’t have that. Worse still, people with individual accounts aren’t beholden to a union for their retirement — although what good that does anybody who worked for a company that’s gone broke, for instance Pan Am, is a question never really answered by old-fashioned pension advocates.
From the perspective of politicians, a private account also means you can’t scare people by saying, “If you don’t vote for me, those evil Republicans will take away your monthly check.” The power to hold that (empty) threat over the heads of seniors is among the most beloved in the Democratic Party’s bag of electoral tricks, and the prospect of a populace with its own retirement money clearly drove many Democratic politicians nuts.
But above and beyond those issues, the governmental class really hates IRAs and 401(k) accounts because in their eyes such accounts take all that glorious tax money away from the U.S. Treasury. Billions upon billions, deferred for decades — or given up completely in the case of Roth accounts — money that they could be spending to buy votes. It’s unconscionable! Who do all those little people think they are?
Last year’s stock panic must have looked like a golden opportunity to say, “See, we told you rubes what would happen if you tried to take care of yourselves!” That argument fizzled and the plot quieted down as the markets made back most of 2008’s losses, but after a year of madcap spending from the Obama administration and the Democratic congress, it appears to be back.
According to Theo Francis at BusinessWeek, “The Obama
administration is weighing how the government can encourage workers to turn their savings into guaranteed income streams following a collapse in retiree accounts when the stock market plunged.”
It turns out that Obama appointees Phyllis Borzi (assistant secretary of labor) and Mark Iwry (deputy assistant treasury secretary) are floating the idea of “the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams.”
Well.
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At this point, I wouldn't put anything past government, Democrats or Republicans. Nothing really surprises me when it comes to news out of Washington.
It will be interesting to see how things play out but they can manipulate just about everything.
It will be interesting to see how things play out but they can manipulate just about everything.
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After having lost more money out of my 401K than I have put into it over the years. Honestly, it got me thinking about an annuity scenario last year. Fact: If this happens to my 401K when I'm 50. I can't retire like planned. This happened to my brother, he now will be working seven more years, instead of two.
I think even with modest gains, I would have been better off over the last three years, had I stuck with a 3-5% return per year, rather than the wild freaking swings I've gotten. Lesson learned.
I think even with modest gains, I would have been better off over the last three years, had I stuck with a 3-5% return per year, rather than the wild freaking swings I've gotten. Lesson learned.
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Deferred Annuities are great and underutilized, but really a person should have other savings plans maximized first...at least that's what most financial advisers will tell you.
