This week's picks include a list of groups that need life insurance, a comparison of President Obama's and Paul Ryan's budgets, how employer health and retirement plans are converging, an exploration of bettering long-term care costs, and a piece detailing the mechanics of GLWBs.
Employer health and retirement plans converging
"The result is a convergence that finds both types of plans trying to use incentives to change employee behavior even as they offload more key decisions and financial responsibility onto employees."
Five groups that really do need life insurance
"'People think of life insurance primarily to replace lost income or for a death benefit,' she says. 'But there are so many other ways you can use life insurance.'"
What advisors don’t know about variable annuities: How GLWBs work
"In a variable annuity with a GLWB, the underlying account grows each year based on the performance of the account’s investment portfolio net of withdrawals and fees. The highest account value attained is saved and this becomes the high-water mark for all future periods."
The Obama budget: tax the rich, spare the poor, remember the young
"If the Paul Ryan budget, in nine words, was: 'Save the rich; Forget the poor; Spare the old,' President Obama's budget, in nine words, is: 'Tax the rich; Spare the poor; Remember the young.'"
Advisors to clients: How to talk about scam fears
"Stories about advisors cheating their clients are far from rare, and therefore, advisors must do a better job at educating and appeasing concerns, says Daniel Bernstein, director of research and development of MarketCounsel, a so-called advisor for advisors."
Life insurance industry to rally in Washington against higher taxes
"Hundreds of insurance advisers are headed to Washington next week, as the industry tries to warn lawmakers not to touch preferential tax incentives for life insurance."
10 biggest 401(k) mistakes—and how to avoid them
"As traditional defined-benefit pensions become increasingly rare, more Americans instead are offered employer-sponsored 401(k)s, defined-contribution plans that require participants to be more proactive and educate themselves."
Stalking the silent financial killer in our midst
"The vast majority of older Americans, facing steep and rising health-care costs that threaten to bankrupt them, are doing little to protect themselves... The reasons why are simple: Not only are policies expensive and confusing; many leading insurers have stopped selling them."
Financial advisors are adopting social media, fitfully
"'Customers have a high expectation of how to deal with social media and they expect realtime updates and alerts. Pop me an alert and have my advisor call me; I don’t care to come into your mahogany office.'"