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Category Archives: Financial System

Asset Decumulation or Asset Preservation? What Guides Retirement Spending?

Asset Decumulation or Asset Preservation? What Guides Retirement Spending? A research report from the EBRI Education and Research Fund © 2018 Employee Benefit Research Institute April 3, 2018, No. 447. “The Employee Benefit Research Institute (EBRI) undertook a study examining the extent to which the non-housing assets of certain retirees changed during their first 20 years of retirement (or until death, if earlier).
  • The study relied on income and asset data from the Health and Retirement Study (HRS), the most comprehensive survey of older Americans in the country, and on spending data from the Consumption and Activities Mail Survey (CAMS), a supplement to HRS. All numbers are measured in 2015 dollars. The study shows that retirees generally exhibit very slow decumulation of assets.
  • More specifically, within the first 18 years of retirement, individuals with less than $200,000 in non-housing assets immediately before retirement had spent down (at the median) about one-quarter of their assets; those with between $200,000 and $500,000 immediately before retirement had spent down 27.2 percent. Retirees with at least $500,000 immediately before retirement had spent down only 11.8 percent within the first 20 years of retirement at the median.
  • While some retirees do spend down most of their assets in the first eighteen years following retirement, about one-third of all sampled retirees had increased their assets over that period.
  • Pensioners were much less likely to have spent down their assets than non-pensioners. During the first 18 years of retirement, the median non-housing assets of pensioners (who started retirement with much higher levels of assets) had gone down only 4 percent, compared to 34 percent for non-pensioners.
  • The median ratio of household spending to household income for retirees of all ages hovered around one, inching slowly upward with age. This suggests that majority of retirees had limited their spending to their regular flow of income and had avoided drawing down assets, which explains why pensioners, who had higher levels of regular income, were able to avoid asset drawdowns better than others…”

These 11 questions will help you decide if blockchain is right for your business

World Economic Forum: “One of the most unique aspects of blockchain is its high number of evangelists – people who believe blockchain can solve everything from global financial inequality, to the provision of ID for refugees, to enabling people to sell their houses without an estate agent. The enthusiasm to (over) promote the technology is… Continue Reading

Global Findex Database Measuring Financial Inclusion and the Fintech Revolution

“Financial inclusion is on the rise globally, accelerated by mobile phones and the internet, but gains have been uneven across countries. A new World Bank report on the use of financial services also finds that men remain more likely than women to have an account. Globally, 69 percent of adults – 3.8 billion people –… Continue Reading

TIME – 100 Most Influential People of 2018

The 100 Most Influential People of 2018 [Searchable List] – “TIME’s annual list of the world’s most influential people is a designation of individuals whose time, in our estimation, is happening right now.” Thoughts about each individual on the list are written by a wide range of iconic individuals who likewise have been pioneers in… Continue Reading

Fortune – The World’s 50 Greatest Leaders

The World’s 50 Greatest Leaders – “Though it seems unlikely, Tim Cook and Indira Jaising have something in common besides membership in Fortune’s 2018 ranking of the World’s Greatest Leaders. Cook (No. 14) is the wealthy CEO of Apple, the most valuable publicly traded company on earth; Jaising (No. 20) is an Indian lawyer who… Continue Reading

World Economic Outlook, April 2018 Cyclical Upswing, Structural Change

World Bank: “The global economic upswing that began around mid-2016 has become broader and stronger. This new World Economic Outlook report projects that advanced economies as a group will continue to expand above their potential growth rates this year and next before decelerating, while growth in emerging market and developing economies will rise before leveling… Continue Reading

Women, Business and the Law 2018

The World Bank: “Women, Business and the Law (WBL) measures gender inequality in the law. The dataset identifies barriers to women’s economic participation and encourages the reform of discriminatory laws…In its 5th edition, Women, Business and the Law introduces scoring to better inform the reform agenda. The report tracks progress made over the past two… Continue Reading

Interactive Map Reveals The Richest Zip Codes In America

Bloomberg: “The richest zip code in America is just as exclusive and elite as the people who live there. Fisher Island, located just off the coast of Miami, is accessible only by ferry or water taxi and is a haven for the world’s richest. The 216-acre island has diverse residents, representing over 50 nationalities and… Continue Reading

Inside Cambridge Analytica’s Virtual Currency Plans

The New York Times: “The embattled political data firm Cambridge Analytica quietly sought to develop its own virtual currency in recent months through a so-called initial coin offering, a novel fund-raising method that has come under growing scrutiny by financial regulators around the world. The offering was part of a broader, but still very private… Continue Reading

NY AG Launches Inquiry Into Cryptocurrency “Exchanges”

“Today, New York Attorney General Eric T. Schneiderman launched the Virtual Markets Integrity Initiative, a fact-finding inquiry into the policies and practices of platforms used by consumers to trade virtual or “crypto” currencies like bitcoin and ether. As part of a broader effort to protect cryptocurrency investors and consumers, the Attorney General’s office sent letters… Continue Reading

IRS website unavailable for efiling most of tax day!

IRS electronic filing systems working again after agency’s Tax Day technology meltdown – “The Internal Revenue Service’s system for accepting online tax returns is working again after being inoperational for much of the day Tuesday [April 17, 2018]. IRS officials promised that people hampered by the technology failures would not be penalized for late returns, but… Continue Reading

NBER – The Impact of Artificial Intelligence on Innovation

The Impact of Artificial Intelligence on Innovation, Iain M. Cockburn, Rebecca Henderson, Scott Stern, NBER Working Paper No. 24449. Issued in March 2018. “Artificial intelligence may greatly increase the efficiency of the existing economy. But it may have an even larger impact by serving as a new general-purpose “method of invention” that can reshape the… Continue Reading