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More and more large corporations using annuities for their pension benefits! February 27, 2018

Posted by shaferfinancial in Uncategorized.

Just a quick note. CBS bought a group annuity to offset its pension plan risk. The amount of the offset was $800MM representing 20% of its pension obligations. This is not an isolated case as more and more large corporations are turning to insurance products to manage their obligations. I have written before about the use of Life Insurance [COLI] for asset protection by large corporations a practice that goes back 100 years.

So why do financial planners not encourage their clients to offset risk by doing the same? After all large corporations have much less sequence of return risk than do individuals.

More and more people are now realizing that the financial planning industry is in bed with Wall Street.



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