Blackstone president Tony James has proposed a radical new retirement system for US workers
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A private equity exec and an economist are advocating a new national retirement system (InvestmentNews)
Economist Teresa Ghilarducci and the president of private equity firm Blackstone Group, Tony James, hatched a new proposal to fix the country’s retirement savings crisis.
The new proposal would “force workers and their employers to contribute at least 3% of the employee's salary each year toward an account that would be converted into an annuity at the time of retirement," reports Greg Iacurci. It “is designed to replace current 401(k) plans."
The new career military retirement system will require personnel to save more for retirement (FA Magazine)
First Command Financial Services Inc., a Texas-based organization that counsels military personnel on financial issues, notes that the new military retirement system will require military personnel to save more if they want to match the pension benefits of the old system.
"Military personnel who enlist after Jan. 1, 2018, will be part of a new military pension system that includes elements similar to retirement plans in the private sector," reports Karen Demasters. “It replaces the traditional pension that was granted after a 20-year military career.”
Liz Ann Sonders: "Pay more attention to Buffett than politicians" (Charles Schwab)
Although all the politicians have been playing up the negatives during the on-going election season, Sonders argues that perhaps investors should instead focus on Warren Buffet’s optimistic message.
There are “apocalyptic scenarios abound, but investors who have defaulted to optimism historically have been rewarded,” writes Liz Ann Sonders. Notably, “a number of things have been going right lately.”
"Politicians are self-interested? I hadn’t noticed. Investors are dour? I have noticed. There are reasons for optimism? Take notice; there are many,” she added.
Ritholtz: Broker misconduct is "astonishing" (Financial Planning)
A report from Tuesday found that about 7% of financial advisors have a misconduct-related disclosure on record, and about one-third of those are repeat offenders. "There is no other way to put this: That's just astonishing,” wrote Barry Ritholtz in Financial Planning.
"Perhaps most dispiriting of all is that misconduct is even more common in counties filled with wealthy, elderly people. For example, the study found that of the '5,278 advisors in Palm Beach, Florida, 18.1% have engaged in misconduct," he noted.
A House bill that would weaken SEC enforcement moves forward (ThinkAdvisor)
"Despite opposition, the House Financial Services Committee approved a bill introduced by Rep. Scott Garrett (R.-N.J.) that seeks to allow companies to opt out of the Securities and Exchange Commission's current enforcement proceedings," reports Janet Levaux.
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