Category GMWB

‘RIP’ GMWBs? Who will miss these lose-lose products?

There were a number of recent articles indicating that insurance companies are exiting the GMWB business. The latest in the past week were MSN Canada’s  “Insurers back away from “income for life” products”, Benefit Canada’s   “Say goodbye to GMWB as you knew it” and WSJ’s  “Hartford says goodbye to annuities”. According to these articles (and references therein) Desjardin, Standard […]

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GMWB III – Q & A: Are GMWBs more desirable investments in “post-2008” context of low interest rates?

Last week I received the following question on GMWBs (Guaranteed Minimum Withdrawal Benefit insurance products) that I discussed in earlier blogs. Question:  “GMWB discussions. Time to update your conclusions. Outdated pre-2008 markets. Inflation numbers of 3%, GIC numbers of 5%?  Will be interested to see part III of this.” Answer: It’s a good question, since […]

GMWB II- Guaranteed Minimum Withdrawal Benefit II

GMWB II- Guaranteed Minimum Withdrawal Benefit II This is a follow-up to the GMWB I blog of a few weeks ago, where I also described the characteristics of typical GMWB products. Here I will compare various decumulation options with the hypothetical GMWB product described earlier and various parameters. This will get a little technical, but […]

GMWB I – Guaranteed Minimum Withdrawal Benefit (Preliminary)

GMWB I – Guaranteed Minimum Withdrawal Benefit (Preliminary)   I have received questions about Guaranteed Minimum Withdrawal Benefit (GMWB) products from a number of individuals. So this is the first of a couple of in-depth blogs on the subject. (Follow-up blogs are available at GMWB II- Guaranteed Minimum Withdrawal Benefit II, GMWB III – Q […]

Vanguard GLWB vs. other decumulation strategies

Vanguard’s GLWB: Credit to Vanguard for delivering on the promise (Originally posted November 7, 2011 and re-hosted in March 2012) In a nutshell Vanguard’s GLWB finally meets the promise of the value inherent in GLWB/GMWB-like strategies. We can only hope that Vanguard will also offer this product eventually in Canada. Vanguard’s GLWB is a great compromise […]