LifeX Funds Answer the Call

Nathan DutzmannAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

The call, in review

Last July, here in Advisor Perspectives, I issued an open letter to the annuity industry requesting the introduction of a product to meet the needs of independent advisors who adhere to a safety-first, goals-based investing philosophy. The desired product would provide the following:

1. A guaranteed, CPI-adjusted income stream…

2. …for the lifetime of the annuitant(s)…

3. …beginning now (like a single-premium immediate annuity or SPIA) or at whatever future date we choose (like a deferred-income annuity or DIA).

4. It can be purchased without death benefit, surrender/remainder value, or other add-on that would reduce income (and increase fees) …

5. …but it has a cash value, or other method of eliminating conflicts of interest for fee-only advisors.

In a twist worthy of an early M. Night Shyamalan movie,1 my call has been answered to a remarkable degree…by a mutual fund company!