Wealth Management
Protective Aspirations variable annuity offers clients flexibility and guaranteed lifetime income, addressing retirement concerns like market volatility, healthcare costs, and evolving financial needs. With features like SecurePay Protector, it enables higher early retirement income, while also adapting to unforeseen challenges.
The single-age withdrawal rates stand out, allowing retirees to maximize value based on their exact retirement age rather than broad age bands. For healthcare, the SecurePay NH benefit provides additional income during nursing home stays without impacting lifetime guarantees.
Protective’s focus on customization and strong guarantees ensures financial professionals can build tailored strategies for long-term stability and adaptability.
Finsum: Variable annuities offer an appealing solution for those who want a little more flexibility in their annuity options for 2025
The Salt Financial Annuity Index Report for December also serves as the 2024 year-end review, showcasing trends in annuity index performance. U.S. large-cap equities and gold delivered strong gains, while small caps, international stocks, and bonds lagged, contributing to better returns for equity-only volatility-controlled strategies over multi-asset designs.
Despite solid nominal returns, higher volatility in technology-heavy indices reduced their risk-adjusted performance compared to broader benchmarks like the S&P 500. Excess-return structures in annuities, combined with elevated interest rates, weighed on returns, particularly for bonds and multi-asset indices.
Equity-only indices tied to U.S. large caps led the pack, but the cyclical nature of markets underscores the importance of diversification.
Finsum: Advisors should consider dynamic strategies to optimize their clients’ outcomes.
Defined contribution retirement plan advisors are increasingly prioritizing income solutions to help participants navigate the complexities of their post-work years. The latest research from Escalent’s Retirement Plan Advisor Trends™ highlights a sharp rise in advisors recommending these options, growing from 21% in 2022 to 30% in 2024, with more expected to follow.
Despite this uptick, no single approach has emerged as the standard, underscoring the need for continued innovation. Popular strategies include income-generating bond funds, target-date funds with guaranteed income components, and systematic withdrawal programs, although high fees and portability concerns remain significant barriers.
A separate Escalent study reveals that only 17% of plan participants feel confident in converting savings into sustainable income, particularly among Gen Xers.
Finsum: This presents a clear opportunity for financial firms to educate advisors and develop innovative solutions that address these anxieties while tapping into a growing market.
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Technology stocks are making a strong comeback, with the Nasdaq Composite and S&P 500 approaching record highs after their recent pullback. For those exploring artificial intelligence opportunities, stocks with reasonable valuations and solid growth potential remain attractive.
Evercore strategist Julian Emanuel identifies promising options like Visa and Micron Technology, which leverage AI to enhance performance and competitiveness. Visa's adoption of AI-driven fraud prevention tools is expected to drive earnings growth of over 12% annually for the next two years.
Similarly, Micron’s AI-related components, crucial for powering Nvidia’s chips, position the company for a 25% annual sales increase through 2026.
Finsum: These examples highlight how AI can fuel profitability and create sustained momentum in select technology stocks.
Emerging markets have faced a challenging year, but they remain essential for achieving greater portfolio diversification. According to insights from the Natixis 2025 Institutional Outlook Survey, many institutional investors anticipate robust growth in these markets next year, with monetary policy shifts expected to play a significant role in driving expansion.
However, China’s economic struggles, including a weak real estate market and reduced consumer spending, have tempered enthusiasm, leading investors to focus on other opportunities. India is gaining traction as a standout emerging market, with many predicting it will surpass China as a top investment destination, while regions like Asia ex-China and Latin America are also drawing attention.
Though uncertainties persist, adopting a long-term approach to investing in emerging markets can yield strong growth potential as global economic conditions evolve. This strategy allows investors to tap into the transformative opportunities these markets continue to offer.
Finsum: With high risk and growth opportunities, its important to caution clients on the risks and that term is baked into the picture.
The IPO market may see a resurgence in 2025, with Wall Street banks gearing up for increased activity as private equity firms look to the equities market to divest high-profile assets. Companies like Medline and Genesys, backed by private equity, have already filed for IPOs, signaling the potential for a busy year ahead.
Analysts anticipate a surge in IPO announcements during the year’s first half, driven by a robust stock market, anticipated regulatory rollbacks, and tax cuts under the Trump administration. In 2024, IPO performance was promising, with most major listings ending the year above their debut prices.
Experts, including Eddie Molloy of Morgan Stanley, expect significant activity in private equity-backed IPOs, particularly in tech, where demand for investment opportunities is strong.
Finsum: Companies such as Chime and Klarna in the FinTech space are also poised to capitalize on this revived market environment.