Article originally published by CNBC.com
Written by Sarah O’Brien
“Lawmakers are considering a proposal to let 401(k) plans include annuities as a “default” investment option.
Under a bill in the House, as much as 50% of a participant’s contribution could be put in an annuity, under certain circumstances. The idea, said supporters of the provision, is to help workers reach retirement with a source of guaranteed income derived from their savings.
“What we’re advocating is introducing the idea of lifetime income to be at least part of a [default investment option] — not the entire amount, but a portion,” said Dan Zielinski, spokesperson for the Insured Retirement Institute, which, in part, represents the annuity industry.
“People have anxiety about running out of money in retirement, so this would be an option to alleviate that anxiety and give them a stream of income … while still retaining the other portion of their investment savings,” Zielinski said.
The bipartisan bill, called the Lifetime Income for Employees Act, also is included in a draft version of another retirement-related bill that is expected to be formally introduced later this month. It is among the handful of measures pending in Congress that seek to build on the Secure Act, legislation enacted in 2019 that aimed to increase both the ranks of savers and retirement security.
It’s uncertain whether the proposal to let annuities be a default option will make it into any broader retirement bill that supporters hope will be considered this year.
Annuities can vary widely, both in terms of cost and particular guarantees. However, they all generally involve entering into a contract with a provider (typically an insurance company), whereby you hand over your money in exchange for the promise that you’ll receive regular payments across many years (or decades).”
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Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.