Edition:
United Kingdom

Beth Pinsker

Your Money: Big companies explore virtual care to curb healthcare costs

13 Aug 2019

NEW YORK Big companies are increasing incorporating virtual technology and care options into employee benefit plans to combat the rising healthcare costs that long been corporate America's bugaboo, according to the annual survey of the National Business Group on Health.

YOUR MONEY-Big companies explore virtual care to curb healthcare costs

13 Aug 2019

NEW YORK, Aug 13 Big companies are increasing incorporating virtual technology and care options into employee benefit plans to combat the rising healthcare costs that long been corporate America's bugaboo, according to the annual survey of the National Business Group on Health.

Your Money: What to do if you need to sell stocks now

07 Aug 2019

NEW YORK When stocks are volatile, conventional wisdom says to stay the course. But what if you have tuition due or a pending home purchase and you just really need to cash out?

YOUR MONEY-What to do if you need to sell stocks now

07 Aug 2019

NEW YORK, Aug 7 When stocks are volatile, conventional wisdom says to stay the course. But what if you have tuition due or a pending home purchase and you just really need to cash out?

When financing retirement, balance emotion and math

01 Aug 2019

NEW YORKWith the U.S. Congress poised to pass a bill allowing annuities to be offered in mainstream 401(k) plans, Americans soon will be asking a lot of questions about these financial products that provide guaranteed lifetime income for an upfront investment.

YOUR MONEY-When financing retirement, balance emotion and math

01 Aug 2019

By Beth Pinsker NEW YORK, Aug 1With the U.S. Congress poised to pass a bill allowing annuities to be offered in mainstream 401(k) plans, Americans soon will be asking a lot of questions about these financial products that provide guaranteed lifetime income for an upfront investment. Moshe Milevsky is one of the few annuity scholars who can provide the answers in language regular people can understand. By day, he teaches personal finance at the Schulich School of Business at York University in Toronto. He is also the author of several personal finance books, the most recent of which is "Longevity Insurance for a Biological Age." Milevsky spoke with Reuters about what people need to know about annuities. Below are edited excerpts. Q: Why are you such a proponent of annuities? A: The short answer is that anything that pays you money for the rest of your life is a good thing. Q: So why don't more people own annuities? A: For 50 years, economists have been puzzling on why don't more people buy annuities if they make so much sense. A hundred billion dollars in annuities is nothing compared to the trillion dollars in the retirement system. At least 15 to 20 reasons have been posed. One of them is the trust factor. Annuities are by definition complicated, emotional instruments that require an intermediary to help. Buying an index fund, by contrast, is a very cold transaction that you can do very cheaply online in about 10 seconds. Q: Can people be convinced by logical arguments to overcome those fears? A: Absolutely not. It's a gut instinct. The last thing you want to do to somebody reluctant to buy an annuity is send them to Econ 101. Q: What is the biggest money conundrum for your personal finance students? A: They are very concerned that our curriculum is about investing and asset allocation when most of them have no assets. They have debt. They want to know how to manage debt properly and how much is too much. I also find that they are fascinated with taxes. Once they learn that Uncle Sam (or the Canadian Revenue Agency) has a piece of you for the rest of your life, they want to know how to minimize that. Q: When do people need to get serious about retirement? A: If I could pick a number, I'd say 40 is the magic age. Once you hit 40, you start to see this day when you will want to work less. I hate to use the word retirement; it doesn't mean anything anymore. But people understand that they will want to slow down, and they will want to draw some of their money down. Q: Your research delves into the centuries-old history of annuities. Why is this practice new again? A: There's a groundswell of support for annuity-like products not sold by insurance companies. This goes into the subject of tontines, and group self-annuitization and with longevity risk-sharing schemes. The Twitter summary of a tontine is that a group of people get together, buy a bond and share the coupons as long as they are alive. As we pass away, the coupons only get shared with the people who are alive. The longer you are alive, the more you get to enjoy the coupons, and the payments will continue to increase because people are passing away. It's a bit disappointing to me that we have to go back 300 years or 400 years to look for innovation in the retirement income space. There was a much more robust market for retirement income products in the 17th Century. Q: Most people start retirement planning by trying to predict when they will die. What is your argument against that? A: This is about saying: There's a probability that you will live a very long time - much, much longer than you expect - and you need protection. The wrong way is to say, "I'm going to only make it to 80, so I don't need something that pays me if I get to 85." Stop guessing longevity. I wish I had a bumper sticker. (Editing by Lauren Young and Richard Chang)

Your Money: Make a paycheck checkup easier, despite the IRS

25 Jul 2019

(This June 26 story corrects the penalty rules to 100% of last year's tax from 90% in paragraph 20)

Your Money: How to play the savings interest rate game

23 Jul 2019

NEW YORK Looking for the best interest rate for your savings account?

YOUR MONEY-How to play the savings interest rate game

23 Jul 2019

NEW YORK, July 23 Looking for the best interest rate for your savings account?

Your Money: Families need to brush up on student loan literacy

23 Jul 2019

NEW YORK For Americans worried about the escalating price of a college education, here's good news: Tuition for the typical family barely budged in the past year, following years of out-of-control U.S. tuition inflation.

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