Social Insecurity: Financial Advisors' Daily Digest

by: SA For FAs

Summary

The U.S. comes in at a ranking of 14 in a survey of retirement security by Natixis Global Asset Management.

Aberdeen Asset Management uses multifaceted “Rubin’s vase” metaphor to show there are different sides to every investing story.

Jesse Felder: for 50 years, we’ve never seen a profits decline of this magnitude without at least a 20% fall in stock prices.

Fewer workers supporting increasing numbers of retirees - that's just one factor of many that emerges from a discouraging report out earlier this month from Natixis Global Asset Management, surveying retirement security internationally. Turns out the U.S. ranks 14 out of 43 countries surveyed in the Natixis report, which weighs in at 67 pages. Factors cited in this middling rating include high levels of public indebtedness and rising tax burdens, suggesting what should be the obvious point (though seemingly not so to voters) that sound public finances are a precondition to individual retirement security. Here's a quote:

…rising expenses in the long term seem inevitable as more baby boomers reach retirement age. This will increase Medicare expenditures, which already constitute close to a fifth of the federal budget.

(To arrive at a fifth, they must be including Affordable Care Act subsidies, Medicaid and other healthcare-related expenditures.)

To all this one could add that Americans save too little, often lack access to pensions and depend on a Social Security system that is insecurely financed. I suspect it is this picture of insecurity that at some levels drives many readers to Seeking Alpha.

Your thoughts, as always, are welcome in the comments section.

Here are today's advisor-related links: