"Insurance companies are run to make a profit.? Although they are supposed to have a fiduciary responsibility to the annuity recipients, they balance that against their desire to make a profit.? Where IBM has invested the pension funds very conservatively (mostly in bonds), I expect that Prudential and MetLife will change this somewhat to get better returns by investing more in stocks and other higher risk investments."
Pension beneficiaries MUST pay close attention to government initiatives broadening investment regulations beyond fiduciary duties to beneficiaries, encompassing broader "stakeholders" and goals such as ESG (Environmental, Social and Governance).?? In our case, Insurance companies' obligations to invest for "returns" on social and environmental goals could mean that beneficiaries' pension payouts ($) become increasingly replaced by vague "returns" on social and environmental goals (not $). ? But this new government "stakeholder" push also affects how most other financial managers (mutual funds, ETFs, etc.) must "invest."?? Please contact your Congressional representatives to protect against this significant threat to protecting your savings, and remember this when you vote.
