Clients Are Overlooking Annuities For Retirement Income, Panelists Say

With protracted low interest rates, retirees have taken extra risks to try to generate yield on their money. That means they are moving it out of fixed-income securities and into equities, often without even considering annuities as a potential higher yielding fixed-income substitute.

That was one of the key takeaways from a Wednesday afternoon panel, led by David Lau, at the Next Chapter conference sponsored by Financial Advisor. Lau is the founder and CEO of DPL Financial Partners in Louisville, Ky., which works with RIAs and annuity providers to help match low-cost annuities to clients' needs.

Lau’s panel discussion, called “The Role of Annuities in Retirement Income Portfolios,” also included David Blanchett, PhD, a managing director and head of retirement research at QMA, a quantitative equity and multi-asset solutions specialist, and Bryan Montemurro, a financial advisor at Two West Advisors in Overland Park, Kan.

Read more at FA Mag