January 2020

28Jan

US. What Are The Solo 401(k) Contributions Limits For 2020?

For those of you who are working as independent contractors or small business owners, you may benefit from contributing to a small business retirement plan. One plan that allows for the largest pre-tax contribution is the Solo 401(k). Tax planning for your business may be the difference between turning a nice profit and barely keeping the doors open. Similarly, making smart tax moves may free up more money to save for a secure retirement. Using a Solo 401(k)...

January 28, 2020
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24Jan

New York City Takes ‘Major US. Next Step’ on Fossil Fuel Divestments

Meketa Investment Group has been selected to evaluate options and develop a prudent divestment strategy from fossil fuel companies in alignment with the fiduciary duties for New York City’s largest pension funds, the city’s mayor and comptroller announced. “While the Trump administration fails to address global warming as the crisis it is, New York City is taking action,” said Mayor Bill de Blasio. “We are dedicated to delivering what we owe to our children and grandchildren, which is why...

January 24, 2020
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08Jan

MidEast Retreats as Investors Steer Clear of Most-at-Risk Region

Middle Eastern markets can hardly be accused of complacency over the latest surge in regional tensions, even if global investors are taking a more relaxed view of events. The region accounts for three of the world’s 10 worst-performing equity indexes since the U.S. drone attack that killed Iran’s General Qassem Soleimani last week, while the dollar-denominated bonds of Iraq, Lebanon, Bahrain, Egypt and Oman are among the 10 biggest losers in emerging markets. Read Also Us public pension funding crisis...

January 8, 2020
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07Jan

Athene Closes $6 Billion in Pension Risk Transfer Transactions During 2019

Athene Holding Ltd. ("Athene") (NYSE: ATH), a leading retirement services company, announced it has reached approximately $6.0 billion in total pension risk transfer (PRT) transactions for 2019, which includes approximately $800 million from a recently completed funded reinsurance transaction with a leading U.K. insurance company. Under the terms of Athene’s inaugural transaction in the U.K. market, which closed December 19, 2019, the Company will reinsure a block of pension benefit liabilities through its wholly owned subsidiary Athene Life Re...

January 7, 2020
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06Jan

US. Public Pension Funding Crisis: Why Should Today’s Workers And Retirees Pay The Price?

Here are some excerpts of interest from a May 26, 1965 Chicago Tribune story, “Police, Fire Pensions Tabled”: “Three important police and firemen’s pension bills appeared defeated today but efforts may be made to revive one which would consolidate 335 pension systems outside of Chicago. . . . “Robert Erickson, a spokesman for the Civic federation, Chicago taxpayers’ organization, was happy when two tax-increasing bills were tabled by their sponsors. “One would have required a property tax boost to...

January 6, 2020
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03Jan

Impact Investing

By Brad M. Barber, Adair Morse, Ayako Yasuda We document that investors derive nonpecuniary utility from investing in dual-objective VC funds, thus sacrificing returns. Impact funds earn 4.7 percentage points (ppts) lower IRRs ex post than traditional VC funds. In random utility/willingness-to-pay (WTP) models investors accept 2.5-3.7 ppts lower IRRs ex ante for impact funds. The positive WTP result is robust to fund access rationing and investor heterogeneity in fund expected returns. Development organizations, foundations, financial institutions, public pensions,...

January 3, 2020
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02Jan

US. Estate Planning: What Does the SECURE Act Mean for You and Your Retirement?

The SECURE Act signed into law in December is the most important retirement legislation in over a decade. The overall goal of the SECURE Act was to make saving for retirement easier and more affordable. Read also Japan’s GPIF is right — short selling is downright irresponsible What’s New? One major change is that the age that individuals must start taking their minimum distributions from retirement accounts has been raised from 70 ½ to 72. This is important because it...

January 2, 2020
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December 2019

26Dec

US. Why states must address pension reform now, before it’s too late

By Keith Greinet and Seth Grove  It’s been quite a while since the American economy has performed as well as it is now doing. Joblessness has sunk to record lows, causing some analysts to suggest we may be as close to full employment as we’re ever going to get. Core inflation remains under control, wages are rising and the U.S. Treasury just announced record total tax revenues of $470 billion for the first two months of the new...

December 26, 2019
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20Dec

State Pension Funds Reduce Assumed Rates of Return

State and local public employee retirement systems in the United States manage over $4.3 trillion in public pension fund investments, with returns on these assets accounting for more than 60 cents of every dollar available to pay promised benefits. About three-quarters of these assets are held in what are often called risky assets—stocks and alternative investments, including private equities, hedge funds, real estate, and commodities.1 These investments offer potentially higher long-term returns, but their values fluctuate with ups and...

December 20, 2019
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20Dec

Debt Close to Retirement and Its Implications for Retirement Well-being

By Annamaria Lusardi, Olivia S. Mitchell, Noemi Oggero We analyze debt and debt management of Americans nearing retirement age. We show that older people have numerous financial obligations that can lead to financial distress. Using data from the 2015 National Financial Capability Study and an extensive literature review, we show that lack of financial literacy, lack of information, and behavioral biases help explain the prevalence of debt later in life. Our evidence indicates that debt at older ages can...

December 20, 2019
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