The perception of annuities is evolving as more asset managers and recordkeepers integrate them into workplace retirement plans, according to a Milken Institute report. The embedding of annuities in target-date funds and other default investment options is a significant development for retirement security, according to the report authors, although they note that challenges remain in broader utilization.

Recent Census Bureau data highlights a strong correlation between higher education and ownership of annuities and trusts, with 4.9% of US households owning such assets in 2022. The data suggests that individuals who attended college are more likely to own these financial products, possibly due to higher earnings and a greater willingness to engage with complex financial products.

Debt is forcing many baby boomers and members of Generation X to delay retirement, according to surveys by National Debt Relief and Debt.com. National Debt Relief says 72% of survey respondents have debt, with 45% carrying credit card balances averaging nearly $9,000. Debt.com says 37% of Americans rely on credit cards to make ends meet.

Market volatility can significantly impact the strategy for taking required minimum distributions from retirement accounts. In a down market, clients can draw RMDs from less risky assets such as bonds or cash to avoid locking in losses, write tax experts William Byrnes and Robert Bloink. Additionally, transferring depreciated securities to a taxable account or executing a Roth conversion can be beneficial strategies.

Representative Bill Huizenga, R-Mich., has reintroduced the Improving Disclosure for Investors Act, a bill requiring the Securities and Exchange Commission to ensure electronic delivery of investment disclosures. While investors could still opt for paper copies, the move seeks to streamline communication and reduce paper use.

The Department of Health and Human Services is considering changes to its operations that could impact programs supporting older adults and caregivers. Among the proposed cuts are funding for State Health Insurance Assistance Programs, elder fall prevention initiatives, respite care for family caregivers, and the long-term care ombudsman program.

Randy Fox of Two Hawks Consulting highlights the opportunity for wealth transfer during market downturns, as assets can be moved at lower values. Fox emphasizes the importance of advisors improving their estate planning knowledge to meet client expectations and build long-term relationships.

A generic approach to prospecting can lead to wasted resources, writes Kristine McManus, who recommends financial advisors define ideal client profiles based on quantitative and qualitative criteria and then tailor messages and services to attract them. Advisors should identify common traits among their ideal clients and work to become experts in those areas to enhance their practices.