Raising interest rates not the answer

(In response to Joseph Finora’s “Mitigating the Longevity Risk,” seen online at www.SeniorMarketAdvisor.com).
If companies respond by raising interest rates, there is nothing to keep them honest. I have years of experience with these instruments and falling rates are, generally, dealt with faster than rising ones. Rising interest rates may not be credited as a function of current interest rates since they correspond with the general account or if banded, the banded investments. I am working with companies now that have a 4 percent bottom and hoping for the best. Multi-years are preferable for the client.
- Joan Lockwood
Via the Internet

Cheaper is not always better
(In response to Roger Balsam’s letter in the May edition of SMA).
Right on, Roger. I thought that I was the only one on the planet who never agreed with the adage, “something is better than nothing.”