12 July 2019 FT — Articles to Read

Question: According to MSN: Money, what are sixteen (16) important reasons not to retire early even if you can?

Net worth: Age gaps open at Wimbledon – Pt. 1

  • The success of male tennis stars such as Roger Federer, Rafael Nadal and Novak Djokovic has pushed the average age in the men’s final stages of this month’s Wimbledon tennis championships above 30 for the first time
  • In the women’s draw, one of the highlights this year was 15-year-old American Cori Gauff making it to the final 16, while 37-year-old Serena Williams will play Simona Halep, 27, in tomorrow’s singles final

Europe’s emerging markets are the new hunting ground for bond ‘yield tourists’ – Pg. 1

  • In today’s weird world of global debt, even bonds from Europe’s emerging markets are being traded with negative yields
  • Bonds across the region have joined in a global rally sparked by expectations of looser policy from the world’s main central banks
  • The promise of a flood of new liquidity into markets has driven Eurozone bond yields to new lows

Fed’s dovish tilt stirs debate on how far it will go – Pg. 2

  • …the Fed chairman played down brighter news such as last month’s strong labour market performance, as well as the recent tariff truce…
  • The first challenge he will have to contend with is that investors are betting heavily on Fed easing, so it risks a big backlash if it does not deliver the rate cuts that are baked into expectations
  • …the probability of a 25bp reduction in rates this month is 78%, while the chance of a 50bp cut this month is 23%
  • Complicating Mr Powell’s task is that he is trying to engineer a rate cut while Mr Trump is pushing the Fed to slash rates to juice the economy and lend him a hand in the trade war with China

Tokyo bourse’s Reit benchmark hits 12-year high despite Sakura Sogo fears – Pg. 21

  • The main benchmark tracking Japan’s real estate investment trust market soared to a 12-year high yesterday as investors bought into an unprecedented hostile takeover battle and Tokyo office rents rose for a 65th successive month in June
  • Since January, the J-Reit benchmark has risen by more than 13% – more than twice the pace of the broad Topix benchmark of Japanese stocks over the same period

Answer: (1) You are doing it because of fear of missing out; (2) You genuinely enjoy your job; (3) You might get bored; (4) Not working could negatively impact your mental health; (5) You might get lonely; (6) You could lose your sense of self; (7) Working later in life can help you fell young; (8) You have not created a financial plan; (9) You have not factored in healthcare costs; (10) You have not property planned for other future expenses; (11) You did not budget for the unexpected; (12) You are giving up a potentially higher pension; (13) Even if you do not have a pension, you are giving up potentially higher social security benefits; (14) You will have to pay a penalty to access your retirement accounts; (15) You are relying on a bull market