Annuity Vigilante for

I was reading the Wall Street Journal the other day while taking in some sun at Central Park and the name Dr. Edward Yardeni popped up. Does his name ring a bell to you? Well, I remember him distinctly because in the late 80’s or early 90’s he wrote a somewhat radical article in Barron’s Magazine.

Yardeni is an analyst that had the crazy notion that treasury yields would plummet due to age demographics in America. Back then he explained that the vast number of working baby boomers would pump up the social security system, which would then pump up treasuries because those social security funds can only purchase treasury bonds. I remember thinking — all these extra workers will lower interest rates with their social security funds and treasury purchases? He must be smoking something! But boy was I way off with my assessment. Dr. Yardeni’s analysis was the primary reason why interest rates remained low for over a decade.

However, Dr. Yardeni is really known for coining the phrase “bond vigilantes,” in the 1980’s. Bond vigilantes protested the monetary policies of the 80’s by selling bonds, which forced interest rates to rise. Yardeni was mentioned in the Wall Street Journal recently because he’s up to his old tricks — not in bonds, but in buying bank stocks. He is now being referred to as a “bank vigilante.” In my opinion, Dr. Yardeni is an investment activist who stands for reason and fairness, and if companies or countries don’t change, then maybe this vigilante can force change.

As you can tell, I have the highest regard for Dr. Yardeni, which got me to thinking; isn’t it time for an annuity vigilante?

I now consider myself the annuity vigilante. I’m not talking about blowing-up-buildings type vigilante, I’m talking about change-for-the-better vigilante. Look folks, we need better fixed annuity products for retired Americans. Some of these fixed index annuities are abusing the current system of cheaper, faster and better products that the world lives by now. As the annuity vigilante, I don’t expect upheaval, but I do expect more Americans to shun “unfriendly” annuities for more fair and transparent products. This process won’t happen overnight, but it’s starts today!

Pay It Forward:

Make it mandatory that your college student takes a few accounting classes. Accounting is vital in all facets of business, and is a must for starting a small business, working for a large company, or even investing in the stock market. If you want to take it further, an accounting degree almost assures your kid a job after graduation.


Earl E Bird

I'm Earl E. Bird and I am very concerned about saving for my senior years. I am amazed at the stumbling blocks that exist when saving for retirement. That's why I take my time when making decisions on building my nest egg.

More Posts - Website - Twitter