28 February 2019 FT — Articles to Read

28 February 2019


Question: According to MSN: Money, what 18 things should you do if you want to retire early?


Cohen declares Trump a racist, cheat and conman in testimony – Pg. 1

–          (Prof Note: Am I the only one that sees the real crime here, in my opinion?!  That one’s lawyer is turning on his/her client publically?  Personally, I have always considered attorney/client privilege sacrosanct.  Has the U.S. Congress completely obliterated attorney/client privilege?  Personally, I considered this more important than HIPAA, religious law, etc.  How is this even happening?  How is Congress allowing it to happen?  What is next, public display of medical records???)


Eurozone slowdown helps keep Draghi’s dissenters in line – Pg. 1

–          The bank’s guidance so far has been that it will keep interest rates on hold “at least” through the summer – but officials, including the hawks, are sounding increasingly comfortable with market expectations that rates will stay on hold until the middle of 2020

–          What first appeared to be a temporary blip in growth risks becoming more prolonged.  The Eurozone expanded in the fourth quarter by just 0.2%, its lowest level in four years, and signs so far this year are that the economy will remain sluggish


China – Pg. 9

–          Chinese consumers spent $4.7tn in 2017 on everything from pet care to cinema tickes and cars….

–          Consumption levels have risen since the 1970s as the economy expanded

–          …share of consumption in China’s GDP increasing to 54% in 2017 – from less than half in 2011

–          Consumption growth has outpaced exports and investment for the first time since the 1980s, with consumption of goods and services accounting for 76% of new economic activity in China last year, up from 47% in 2013

–          With its housing and industrial sectors mired by overcapacity, greater production of consumer goods and services should provide a more sustainable basis for economic growth in China

–          Median individual disposable income grew more than 9% annually between 2011 and 2017, …

–          As of 2015, the top 10% of Chinese owned more than 65% of household wealth, with the bottom 50% owning less than 10%

–          The IMF has warned about the shortfall between household income and consumption, seeing room for growth


Libor’s death is a ‘Defcon 1’ litigation bonanza for lawyers – Pg. 22

–          At issue is Libor, the benchmark borrowing rate that is embedded in everything from floating rate debt to derivatives and mortgages.  The rate touches the most sophisticated hedge funds and the average homeowner.  But the order has come down from on high: Libor must die

–          …likely replacements for Libor, a so-called “term” instrument that locks in prices for three or six months at a time, are generally overnight rates.  This is an effort to cram square pegs into round holes


Answer: (1) Define what retirement means to you; (2)  Increase your current career worth; (3) Live below your means; (4) Start a side hustle and invest the money; (5) Understand the numbers (Prof Note: you need to know what it will take to support the lifestyle desired); (6) Start cutting expenses now; (7) Start building passive income streams; (8) Buy rental properties; (9) Pay off your mortgage early; (10) Get rid of debt; (11) Enroll in an employee-sponsored 401(k) plan; (12) Enroll in a DRIP; (13) Move somewhere cheaper; (14) Reduce transportation costs; (15) Eat right and exercise; (16) See new money as found money; (17) save, Save, SAVE; (18) Follow FIRE blogs