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Terry Savage: Index-linked annuities aren't the bargain they seem
- In 2024, index-linked annuities achieved record-breaking sales totaling $65.6 billion, continuing a decade-long trend of annual increases for this insurance product.
- The SECURE Act simplified the process for employers to include annuities and lifetime income options in their 401 plans, leading to increased employer interest in offering these products.
- Despite rising sales, fewer than 10% of 401 plans currently offer annuities, partly because few financial professionals understand these complex products or meet fiduciary standards.
- Life insurance salespersons receive commissions as high as 8% of initial premiums, while investors rarely receive full stock market upside due to caps and index rules affecting returns.
- This growing market suggests opportunities for knowledgeable investment advisers to serve as trusted annuity consultants amid concerns about costs and product complexity.
24 Articles
24 Articles
Terry Savage: Index-linked annuities aren't the bargain they seem - Tribune Content Agency
The promises are enticing: stock market upside with no risk on the downside. Or market “participation” with downside “protection.” File this under too good to be true. As with all sales pitches, the devil is in the details. Index-linked annuity sales reached $65.6 billion in 2024, marking a 38% increase from the previous year, the […]
Helena Independent Record
Terry Savage: Index-linked annuities aren't the bargain they seem
The promises are enticing: stock market upside with no risk on the downside. Or market“ participation” with downside“ protection.” File this under too good to be true. As with all sales pitches, the devil is in the details.
How to Gain Traction in the Hard-to-Crack 401(k) Market
Editor’s note: Jeff Briskin is a columnist for Rethinking65. Read more of his articles here. One of the toughest markets for investment advisers to crack are 401(k) plans. This may seem counterintuitive, because retirement plan sponsors are required by ERISA to apply a predetermined set of fiduciary requirements when evaluating and selecting investment options to include in the plan. Most plan sponsors don’t have the knowledge to do this themsel…
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