A recent study revealed that holders of fixed indexed annuity (FIA) contracts want to keep those policies in force rather than surrender them.

In a first-ever report on the subject, Ruark Consulting, LLC of Simsbury, Conn., reviewed data on FIA full surrenders supplied by nine insurance companies between January 2006 and December 2010. Those participating companies represented more than 80 percent of 2010 FIA sales and contributed 7.7 million policy years of experience data.

Annuity expert Jack Marrion supports the notion that less competitive investment alternatives and tighter suitability standards are probably the cause of the drop in FIA surrenders. He adds another reason: guaranteed lifetime withdrawal benefits, or GLWBs.
Read more at Lifehealthpro.com

John Diehl is a certified financial planner and senior vice president in The Hartford’s wealth management business.

The GAO, in its June 2011 report to the U.S. Senate’s Special Committee on Aging, helped lift what some viewed as a dark cloud around annuities by making several specific recommendations to help protect or improve retirees’ lifestyles:

• Middle-income retirees should consider converting at least part of their savings into an inflation-adjusted annuity or choose a guaranteed stream of income from an annuity instead of a lump-sum from their employer-sponsored defined benefit plan.

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An extra guaranteed income stream may sound very attractive to potential annuity buyers, but few brokers outline all the facts. Stan Haithcock of StantheAnnuityMan.com explains what to look for if you’re considering this benefit.
The hottest and most controversial topic in the annuity industry today is the Income Rider.
What is an Income Rider? It is an optional benefit that can be attached to an annuity for an additional annual fee, and will provide a lifetime income stream that you can turn on in the future.
Some Income Riders grow at a contractually guaranteed rate that will compound during the deferral years for future lifetime income. Other Income Riders lock in market gains that can be used for future lifetime income. Sounds great in theory, huh? Well, it can be…if utilized properly.

Read more at moneyshow.com

Economists know that entrepreneurship will drive the economy back to health, but many people may be surprised to learn that the baby boom generation is behind the wheel, according to a new study by the Ewing Marion Kauffman Foundation.

Former Entrepreneur Magazine Editor, now GrowBiz Media CEO, Rieva Lesonsky says “Many baby boomers aren’t ready to retire and like the idea of running their own business.” She also says that “Franchises have become a popular choice.”

(Forbes) Retirement strategy has long been almost entirely focused on the accumulation of assets, but study after study has continually moved the goal post for what is needed in savings — $500,000, $1 million, $3 million.

The problem is that big numbers of that sort can either scare investors into thinking a target is unobtainable or force them into a risky glide path in search of returns to reach that magic number. More skeptical savers point out that the very financial firms that benefit from the growth of investible assets have been the ones marketing bigger and bigger “numbers.”

How much people need to retire has become more individualized, more of a moving target. Building needed assets may require more than just the standard simplicity of splitting a “buy and hold” portfolio among stocks and bonds.

Pete D’Arruda, president of Capital Financial Advisory Group says “A core of safety is important.”

Living off a nest egg for 30 or more years is a challenge, so a level of certainty and peace of mind with investments goes a long way, he says. The objective is to have a foundation of safety that enables the rest of the portfolio to take on more risk while lessening worries of day-to-day market volatility.

Women in America Financial Health from Sequence Media on Vimeo.

By many measures, women’s lives have changed substantially in recent decades. According to a comprehensive government report called Women in America, although certain social and economic situations for women have improved, when it comes to personal finances, many women still face challenging hurdles.

Visa Senior Director Jason Alderman tells ANN about some key findings in this report.

Stan Haithcock (The Annuity Man) is recognized as a national expert on annuity products. He discusses what to expect for the industry in 2012 and what advisors need to do to succeed. He emphasizes the need for more transparency and says too many advisors don’t fully understand these products.

But anyone who sells annuities knows two things to be true: annuities can deliver significant value to clients and they are also one of the most misunderstood financial products on the market by consumers and professionals.

Healthcare is one of the major retirement “wild cards” for Boomers and seniors. Poor health can strip people of the enjoyment of their retirement years and their quality of life. Financial fallout from healthcare-related expenses can devastate savings.
Download the study here

In this new study the Bankers Life and Casualty Company Center for a Secure Retirement reports findings from middle-income Boomers and seniors on their retirement healthcare outlook: their view of the connection between health and retirement satisfaction, their experience with Medicare and understanding of the program, and the expectations of middle-income Baby Boomers approaching Medicare age.

Chris Campbell…Vice President of Strategic Marketing & Business Development for Bankers Life says the study shows that many boomers need to learn about Medicare…what it covers and the overall cost associated with coverage. Increasing education on Medicare and healthy living is a great message baby boomers can take from this information.

Chris Price, Director of Broker Dealer Relations for Shurwest Financial Group, tells ANN what
“negative real interest rates” are and how they affect your investments.

The “real interest rate” is the rate of interest an investor expects to receive after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.