10 January 2019 FT — Articles to Read

10 January 2019


Question: According to MSN: Money, what are sixteen (16) things retirees wish they’d done differently?


Market turmoil spurs Fed caution over pace of future rate increases – Pg. 1

–        Volatile financial markets and muted US inflation are bolstering arguments within the Federal Reserve to take more time before increasing interest rates further,….

–        Shifting signals from the Fed contributed to a rocky end to 2018, as investors fretted that the central bank was not taking sufficient account of slowing global growth and hazards such as the trade conflict between the US and China

–        The S&P 500 fell 14.3% in the last three months of 2018 as investor anxiety over the health of the global economy escalated

–        Investors were disappointed after the December meeting that the Fed stuck with guidance, pointing to “some further gradual increases” in rates


Three Fed policymakers urge cautious approach to rate rises – Pg. 2

–        …the outlook for 2019 is shrouded in uncertainty, given market gyrations and signs of slowing growth overseas

–        One measure of stock market volatility, the Vix, ended the year well above its historical average


Eurozone unemployment rate falls below 8% – Pg. 3

–        The Eurozone unemployment rate fell below 8% in November for the first time in a decade, underscoring the tightening in some of the block’s labour markets even though some member states are still suffering  high levels of joblessness

–        The Eurozone youth unemployment rate dropped below 17% in November for the first time since September 2008


Hedge funds suffer their worst year since 2011 – Pg. 19

–        They beat the S&P 500 for the first time in a decade

–        Hedge Fund Research’s main index which monitors funds across strategies, was down 4.07% last year compared with a 4.38% fall for the S&P.  The last time that happened was in 2008 at the height of the financial crisis, when hedge funds fell 19.03% and the S&P fell 37%

–        The only years that were worse were 2011, when the index was down 5.25%, and 2008 at the height of the financial crisis, when the index plummeted 19.03%


Answer: (1) Started saving earlier; (2) Maximized employer plan savings; (3) Used alternative retirement savings accounts; (4) Spent less; (5) Created more income streams; (6) Used after-tax retirement savings accounts; (7) Paid off debt sooner; (8) Planned for the retirement they wanted; (9) Stayed healthy; (10) Diversified Investments; (11) Saved with an HSA; (12) Rebalanced their portfolio; (13) Looked out for fees; (14) Stayed realistic about benefits; (15) Stayed realistic about retirement spending; (16) Used Catch-up contributions