2 July 2018 FT — Articles to Read

2 July 2018

Question: According to “The Motley Fool”, what are 4 thongs you must do before you retire?

MBAs opt for a full-time job and a start-up on the side – Pg. 10

–          Many top business schools on the FT’s annual global MBA ranking list have reported a dip in start-up activity this year, particularly in the US

–          A rise in the number of students setting up businesses as a side project…(Prof Note: The Hustle is a four count.  It is danced in a line and can be syncopated for that added flare!  However, hitch kicks are a no-no…too Latin!  Straight hips with minimal rolling, balls of feet firmly planted, ladies right hand near waist with elbow firmly at side.  Dare I say it, I DARE!  The man leads!  Do the hustle!!!)

–          At many schools, there is growing interest in studying entrepreneurship as a discipline

Renminbi’s sharp decline stokes currency war fears – Pg. 13

–          China’s currency suffered its largest monthly fall against the dollar in June, sparking concern that Beijing is prepared to use devaluation as a weapon in an escalating trade war with the US

–          …the renminbi weakened 3.3% against the dollar in June, the worst single-month decline since China established its foreign exchange market in 1994

–          The renminbi had been an island of strength earlier this year, even as the dollar strengthened.  The declines were partly a catch-up effect….

First ‘integrity rating’ agency launches – Pg. 15

–          A former US government counter-terrorism expert and an emerging markets healthcare lawyer are to launch a rating agency for conduct risk, as the world’s banks struggle to avoid doing business with terrorists, drug dealers and other organized criminals

–          Sigma uses artificial intelligence to sift data from a range of public information and synthesise it into a zero-to-100 score, which translates into a business integrity rating from AAA down to C, similar to the scale used by the credit rating agencies

Answer: (1) Create a new budget (Prof Note: I will work with retirees and always suggest that married couples have three budgets, i.e. one together, one for spouse A (Spouse B has passed), and one for Spouse B (Spouse A has passed); (2) Assess your savings (Prof Note: Assess quantity, quality, and risk profiles); (3) Understand your healthcare needs (Prof Note: Do a realistic assessment); (4) Figure out how you’ll spend your time (Prof Note: Remember that retirement is an equation and NOT an age, i.e. Passive Income >= Active Expense.  Retirement allows one to be the person they want rather than the person they must be to survive.  On Nevis the expats have a bridge club, they play the course weekly, they gripe about politics, etc.  Most, despite the griping, are very happy.  Also consider where you want to spend your retirement….location matters!)