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What Is Safety in Investments?

September 23, 2013

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Safety continues to be the word of the day. Investors continue to say what if? What if the stock market goes down? How will I live? What will I do? This is not the first time I have discussed this and it will not be the last. We are emotional beings and are affected by […]

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Annuities: Don’t Believe The Hype

November 17, 2012

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The Wall Street bullies want you to believe that they have your best interest in mind. Remember if what the insurance companies are protecting you from actually happens, they will be unable to honor their promises. You cannot avoid all risks with your investments you just take different kinds of risk. These risks are all […]

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Why Is Hartford Buying Back $5 Billion of Annuity Contracts They Worked So Hard to Sell?

November 12, 2012

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Most fixed annuity buyers do not realize that the guaranteed rate in their anuity can be reduced at any time without notice. It is also in most cases retroactive. “The insurance companies invested typically in bonds,” explains Edwin Lichtig of California consulting firm Pension Income, LLC.“If interest rates go up, the value of bonds goes […]

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401(k) Fees Exposed in New Rules

June 28, 2012

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The new fee disclosure regulations are a great first step in improving the 401(k) plans in America. Although many firms will continue to hide fees by burying the disclosures in mountains of paper. I have heard that an insurance company fee disclosure document is 42 pages (in fine print). The next step is to automatically […]

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The Great Annuity Rip-Off.

June 28, 2012

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The brokerage firms, banks and insurance companies have a product for every situation. Right now the situation is fear and they feed this fear with ‘safe’ products. These firms make money when money moves. They do not make money if investors develop a prudent portfolio and remain disciplined to that strategy. Annuities help people believe […]

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Should Your Company Hire an ERISA 3(38) Investment Manager for The 401(k) Plan?

March 5, 2012

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The 401(k) plan has attracted substantial attention, some wanted, some unwanted, in an effort to improve the quality of retirement plans for American workers. New regulations are being added or considered every day. For instance the new 408(b)2 fee disclosure regulations become effective later this year. These regulations are expected to change the ways plans […]

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Why Variable Annuities Have No Place in Your 401(k) Plan

February 20, 2012

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Variable annuities are another way for insurance companies to hide unnecessary fees from plan participants. Many of the features when viewed over the long term are unnecessary and hurt performance. The complexity in these annuities does nothing but confuse plan participants and are might to feed their fear. In other words they help sell more […]

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Retirement industry changes on deck for 2012

December 21, 2011

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The 401(k) plan has become the sole source of retirement for most Americans. The 401(k) plan was intended to be a supplement to a pension plan. The trend toward more 401(k) and less pension plans has made it imperative to control costs amd improve quality. The future retirement for most Americans is at stake. Unless, […]

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Fiduciary Links: Annuity sales, concerns on the rise

May 23, 2011

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Annuity products have been getting a lot of attention recently as a “guaranteed” income source that mitigates some of the risk of a 2008-like market crash. An InvestmentNews article this week cited a 24% rise in annuity sales over last…

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