Insurable Interest Canadian Insurance Blog

What You Need to Know Worrisome events from around the globe have left late-career workers and retirees feeling very uncertain about the future. Even in more certain times, the many financial and psychological challenges associated with life after work require constant adjustment. Advisors should be prepared to have tough conversations with clients about the best ways to grow and protect wealth amid inflation and volatility. Preparing for and transitioning to retirement is never going to be easy, but according to Mike Lynch, managing director of Applied Insights at Hartford Funds, it is clear that 2023 represents a particularly unnerving moment for late-career workers and retirees. While the COVID-19 crisis presented severe challenges, Lynch says, these were relatively short-lived for late-career workers preparing for retirement, given that the associated recession was one of the shortest on record. One probably has to think back to the Great Recession to find a time when there was more uncertainty for those contemplating retirement than the present moment. “Retirees and pre-retirees just have so much to think about,” Lynch says. “From inflation to the lingering effects of the pandemic to the Russian invasion in Ukraine. It all leaves people feeling very uncertain about what their...

What You Need to Know The former chief investment officer of PIMCO says financial professionals who are bullish on equities and bonds are wrong. Bill Gross, the one-time bond king, said stock and bond bulls are wrong, as both markets are “overvalued.” The former chief investment officer of Pacific Investment Management Co., speaking in an interview on Bloomberg Television, said the fair value of the 10-year Treasury yield is about 4.5%, compared with the current level of around 4.16%. Gross, who retired from asset management in 2019, said inflation may prove sticky at around 3%. He pointed out that 10-year yields historically traded about 135 basis points above the Federal Reserve’s policy rate. So even if the Fed lowers interest rates to about 3%, the current 10-year yield remains too low, given the historical relationship. In addition, the skyrocketing government deficit will add supply pressure on the bond market, he said, reiterating his view outlined in his recent investment outlook.

What You Need to Know Altruist Financial Advisors LLC says it has owned the Altruist trademark since 2001. Its CEO, Eric Haas, says investor data and funds intended for the California-based investment platform have mistakenly landed at his firm. The California firm, Altruist Corp., says allegations of trademark infringement are without merit. A Michigan financial advisory firm that has filed a trademark lawsuit against investment platform Altruist Corp. contends confusion over the businesses’ similar names has resulted in investors’ personal information and funds mistakenly landing at his firm. “We’ve documented many dozen instances of ‘actual confusion,’” said Eric Haas, CEO of Altruist Financial Advisors LLC, an RIA in Holland, Michigan, that filed the complaint, in a recent news release. “Perhaps the issue of greatest concern is that mom and pop investors who’ve put their money and trust with the (Altruist brokerage platform, based in Culver City, California) are having their personal information mistakenly divulged to us — names, Social Security numbers, dates of birth, account numbers, etc.,” Haas said. “We’ve even had checks mistakenly sent to us.” California-based startup Altruist recently raised $112 million in funding to help it become a major competitor in the RIA custodial services market. Participants in the Series D round...

Federal Life Group — a company that recently began selling a life insurance policy that provides long-term care benefits at the worksite — has hired a leader who has years of experience with stand-alone long-term care insurance. The Riverwoods, Illinois-based company announced earlier this week that it has named Knut Olson to be its CEO and a member of its board. Olson previously was the CEO of National Guardian Life, a life insurer that has been working to fight the long-term care insurance drought and introduce a new LTCI policy. Federal Life has also added three new independent board members, including Tom Marra, who recently retired from a seat on the board of Symetra Life. Earlier, Marra was the CEO of Symetra, and, before that, he was the chief operating officer at Hartford Life. What It Means Federal Life could be preparing to ramp up efforts to help clients plan for retirement income and long-term care needs. Federal Life Federal Life is a company founded in 1899. In 2019, it used financing from Insurance Capital Group, a firm with two former state insurance commissioners on its board, to revamp its operations. Since then, in addition to the life-LTC hybrid, it has...