Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Retirement’

How Much Money Will You Really Spend in Retirement? Probably a Lot More Than You Think

Posted by hkarner - 5. September 2018

Date: 04-09-2018
Source: The Wall Street Journal
Most of us vastly underestimate the percentage of income we’ll need. Here’s how to make sure you get that number right.

When we retire, every day becomes just like the weekend.
And on the weekend, we have all kinds of time and opportunities to spend money.

It’s the question that plagues pretty much everybody as they look ahead: How much money will I need in retirement?

Most likely, a lot more than you think.

Let us explain. The typical approach most people take is to ask what percentage of their final salary they think they will need in retirement. If you have ever visited a financial adviser, you must have been asked this sort of question. You most likely dedicated a whole minute (at most) to formulating your answer.

And no one would blame you for it. Answering a question as complex as this requires knowledge far beyond most people’s grasp—and far beyond the grasp of even many professionals. Den Rest des Beitrags lesen »

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Angst in America, Part 3: Retiring Broke

Posted by hkarner - 4. April 2017

By John Mauldin

April 2, 2017

“The trouble with retirement is you never get a day off.”

– Abe Lemons

“Retirement at sixty-five is ridiculous. When I was sixty-five I still had pimples.”

– George Burns

“To be, or not to be, that is the question:
Whether ‚tis nobler in the mind to suffer
The slings and arrows of outrageous fortune,
Or to take Arms against a Sea of troubles,
And by opposing end them.”

– Shakespeare, Hamlet Den Rest des Beitrags lesen »

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Would You Rather Have $1 Million or $5,000 Monthly in Retirement?

Posted by hkarner - 30. März 2017

Date: 29-03-2017
Source: The Wall Street Journal

The answer will tell you whether you suffer an ‘illusion of poverty’ or an ‘illusion of wealth’

Instead of highlighting only total wealth, financial sites and apps should help people focus on their projected monthly income as well.

These days, investors can track at any moment how the market’s daily ups and downs are affecting their wealth.

Even investors with multiple investment accounts spread across different firms can calculate changes in their net worth in real time, thanks to websites and apps that do all of the work for them.

One might think that having all of this information would make people more financially savvy, especially when it comes to saving for retirement. New research, however, suggests that for many people, it may be the opposite. Den Rest des Beitrags lesen »

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Rehearsals for Retirement

Posted by hkarner - 20. November 2015

Photo of Brigitte Miksa

Brigitte Miksa

Brigitte Miksa is Head of International Pensions at Allianz Asset Management.

NOV 20, 2015, Project Syndicate

MUNICH – Over the rest of the twenty-first century, the global human population is expected to keep growing; more important, it will keep growing older. By the year 2100, the United Nations expects there to be more than ten billion of us, up from 7.3 billion today. In the meantime, the number of people older than 60 is expected to double by 2050 and more than triple by the end of the century.

As societies around the world prepare for swelling numbers of retirees, the policy challenge will be to ensure the financial sustainability of pension systems while guaranteeing adequate incomes for those no longer working. Today, according to recent research by Allianz, only four countries appear to have achieved this: Finland, Norway, the Netherlands, and New Zealand. Den Rest des Beitrags lesen »

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The contribution of the wage structure to early retirement behaviour

Posted by hkarner - 29. Oktober 2015

Wolfgang Frimmel, Rudolf Winter-Ebmer 28 October 2015, voxeu

Assistant Professor, Johannes Kepler University Linz

Professor at Labour Economics at the University of Linz and at the Institute for Advanced Studies, Vienna. CEPR Research Fellow

Den Rest des Beitrags lesen »

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Why private pensions are disappearing

Posted by hkarner - 17. Juni 2014

Date: 16-06-2014
Source: The Economist by Buttonwood

THE earliest pensions—incomes paid to the non-working elderly—appeared in the 17th century. State pensions emerged in the late 19th century, with Otto von Bismarck using them as a way of securing working-class loyalty to the German Kaiser. The huge rise in corporate pensions occurred only after the second world war, in the form of defined-benefit (DB) plans, in which retirement income is linked to a proportion of the worker’s final salary, depending on years of service.

But companies have been retreating from DB plans because of the expense. Workers are living longer: in the mainly rich OECD group of countries, men now aged 65 can expect another 17.6 years of life, compared with 12.7 in 1960. For a while, that cost was disguised by buoyant markets, prompting companies to promise even more generous benefits. But since 2000, the returns from stockmarkets have been disappointing and the yields on bonds have dropped. Public-sector employers are struggling with the same problems, as the recent battle over pension reforms in Chicago showed. Den Rest des Beitrags lesen »

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The Risk of Government Policies and the Rationing of Retirement

Posted by hkarner - 12. Juni 2013

A highly appreciated anlysis on how governments can overcome their debt problem (hfk)

John Mauldin | Jun 11, 2013

In addition to our own, there is another conference I normally go to every spring; but sadly, I missed it this year. Rob Arnott of Research Affiliates indulges me and lets me attend the annual Research Affiliates Advisory Panel he conducts at some exclusive location (usually but not always) in Southern California, in close proximity to one or more fabulous gourmet establishments. And he is an oenophile of the first rank, a pastime that at one time in my life was a huge attraction. I now just live vicariously when he orders wine.

However, the real attraction of his conference is not the food and drink but his gourmet selection of speakers. Over the past 40 years, he has managed to attract Nobel laureates and other real drivers of serious economic research on asset allocation – perhaps because he runs in those circles. He has won more (5!) Graham and Dodd Scroll Awards, given annually by the CFA Institute for best articles of the year, than anyone. As well as lots of other intellectual prizes that my more pedestrian work never seems to garner.

This year saw three Nobel laureates, multiple professors (Cal Tech, Princeton, etc.), and a few other heavyweights contribute to the event. Dr. Jason Hsu, the chief investment officer of Research Affiliates, always prepares a summary at the conclusion of the conference, and this year they published his rather thorough notes.

The overall theme that Jason came up with in summarizing the presentations is “The Risk of Government Policies and the Rationing of Retirement.” This is not what many of my readers would expect from academic economists. A sample of what the attendees heard:

The ability to print money gives the government an ex post option to renegotiate (write down) its debt in real terms. If the government spending and/or investments prove wasteful or unwise, it can allocate the pain to bondholders by printing more money instead of facing the wrath of the electorate by raising taxes in a slumping economy. This option to renegotiate debt without legislative procedure enables irresponsible spending by the government, perpetually, or at least until rampant inflation ensuesThe government’s willingness to borrow rather than tax is a statement about its ability to allocate pain. Higher taxation today allocates pain to wage earners now. Borrowing is a tax on future wage earners…. Den Rest des Beitrags lesen »

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Workers Saving Too Little to Retire .

Posted by hkarner - 19. März 2013

Date: 19-03-2013
Source: The Wall Street Journal

Workers and employers in the U.S. are bracing for a retirement crisis, even as the stock market sits near highs and the economy shows signs of improvement.

New data show that powerful financial and demographic forces are combining to squeeze individuals and companies that are trying to save for the future and make their money last.
retirement money
Fifty-seven percent of U.S. workers surveyed reported less than $25,000 in total household savings and investments excluding their homes, according to a report to be released Tuesday by the Employee Benefit Research Institute. Only 49% reported having so little money saved in 2008.

The survey also found that 28% of Americans have no confidence they will have enough money to retire comfortably—the highest level in the study’s 23-year history.

The same forces are weighing on corporate balance sheets. Based on another recent report, the Society of Actuaries said that rising life expectancies could add as much as $97 billion to corporate pension liabilities in coming years, an increase of up to 5%.

While Americans are living longer, the extended life spans will make it tougher for workers trying to stretch retirement savings and put additional strains on pension plans. Den Rest des Beitrags lesen »

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Stay Out of the ROOM

Posted by hkarner - 22. Februar 2011

An Excerpt from Probable Outcomes: Secular Stock Market Insights

By Ed Easterling

Copyright 2010, Crestmont Research

Al Pacino, Dionne Warwick, Fran Tarkenton, Jack Nicklaus, Mario Andretti, Peter Fonda, Raquel Welch, Ringo Starr, and Smokey Robinson—what do they have in common with secular stock market cycles?

They were all born in 1940 and were subsequently impacted by secular bull markets. The choice of that year, which is not precise but was chosen for illustration, is that people born around 1940 aged into their forties by 1980. Most people and families accumulate savings slowly, if at all, during their twenties and thirties. By their forties, and certainly fifties, they begin to build retirement nest eggs. Therefore those born around 1940 had the opportunity to build sizable retirement savings during the 1980s and ’90s if they invested well as they reached their prime saving period.

David Brinkley, Shelley Winters, Walter Matthau, and others born in 1920 were saving during the secular bear market of the 1960s and ’70s. With little stock market gain over that period, their savings would be filled with contributions that earned little additional investment income. That modest capital base, however, then encountered the secular bull market of the 1980s and ’90s, and though the nest was small, the eggs from it were abundant. Den Rest des Beitrags lesen »

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