Barron\'s - 16.09.2019

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September16, 2019 BARRON’S 43


Mailbag


Mailbag


“TheSenatemustdemonstrateresourcefulness–and


perhapsalittleinspiration–toimprovetheretirement


landscapeformillionsofretirees.” ROGERW.FERGUSONJR.,New York


SENDLETTERS TO:


[email protected]. To be considered for


publication, correspondence must bear the


writer’s name, address, and phone number.


Letters are subject to editing.


Fixingthe Retirement Crisis


To the Editor:


Afterreading Reshma Kapadia’s wonder-


fully informative article about how to fix


the growing global retirement crisis, I


was immediately struck by several


thoughts. In particular, the intelligent


way in which Australia has used public-


private partnerships to mitigate its prob-


lems highlights why this issue is becom-


ing more serious in the U.S. (“How to Fix


the Global Retirement Crisis,” Cover


Story, Sept. 6).


Given that our current political envi-


ronment is a train wreck, the notion of


the White House and Congress working


together to address retirement issues is


highly unlikely. This situation is exacer-


bated by the fact that, despite one report


after another by the trustees of the So-


cial Security system highlighting the im-


minent danger that it faces, politicians


are still gripped by fear of dealing di-


rectly with the issue. What would be


wrong with means-testing benefits, as


virtually every other federal program is


tested? Does anyone seriously believe


that Bill Gates, Jeff Bezos, Oprah Win-


frey, or many other financially secure


Americans will be wringing their hands


each month, waiting for their benefits to


arrive?


I worry not for myself, but for the fu-


ture that my children and grandchildren


will face if nothing is done. We know


what the problems and the potential solu-


tions are, and we have the opportunity to


address them now, as opposed to waiting


until the crisis happens. Instead of tout-


ing more “free” stuff, perhaps the presi-


dential candidates should focus on the


problems that will render all of the free


stuff irrelevant.


ARTHURM.SHATZ


OaklandGardens, N.Y.


To the Editor:


Your recent article provides valuable re-


porting on the industrious strategies that


leading nations are deploying to support


aging populations. A bipartisan group of


U.S. policy makers may earn similar recog-


nition by advancing major reform legisla-


tion that would bring much-needed modern-


ization to the retirement system here in the


U.S. at a time when more Americans are


outliving their savings and stressing the so-


cial safety net.


The House of Representatives in May


passed, by an overwhelming margin, legis-


lation called the Secure Act. It would en-


courage more employers to provide retire-


ment savings plans and expand access to


guaranteed lifetime income options, such as


annuities. While momentum for it has


stalled, champions in the Senate continue to


navigate the politics in Congress to approve


the measure, including by attaching it to


“must pass” spending legislation like the


continuing resolution to fund the govern-


ment, which Congress will probably vote on


in the coming weeks.


The Secure Act would strengthen the


pillars of a dependable and enduring


employer-based U.S. retirement system: a


focus on guaranteed retirement income that


cannot be outlived, a generous match to


employees’ savings, and a commitment to


putting participants’ interests first. Now


more than ever, the Senate must demon-


strate resourcefulness–and perhaps a little


inspiration–to improve the retirement land-


scape for millions of retirees, now and in


the future.


ROGERW.FERGUSONJR


CEO,TIAA


New York


FussOver the Fed


To the Editor:


If the Federal Reserve has been so


impactful in slowing job growth, as Mat-


thew C. Klein suggests (“The Jobs Market


Has Room to Run—if the Federal Reserve


Lets It,” The Economy, Sept. 6), why is


there little or no corroborating evidence


from surveys and public comments of busi-


nessmen that our current levels of interest


rates are inhibiting hiring and job growth?


Two- and 10-year Treasury rates are rang-


ing from 1.55% to 1.65%. If our postcrisis


economy, including the job market, cannot


function in a healthy manner with key rates


at these levels, the fuss over the Fed may


be the least of our problems.


MARSHALLBRASS


West Palm Beach, Fla.


NumbersGame


To the Editor:


IapplaudBarron’son your continued


effort to bring financial literacy to your


articles (“What Investors Need to Know


About Earnings Management,” Sept. 6).


I think many of us take at face value the


earnings presented by publicly traded


companies. But clearly, as the article


points out, they are not necessarily true.


Being an informed investor is incredibly


important for sustaining lasting gains.


TOMKAEMPFER


New Hampshire Attorney General’s Office


Concord, N.H.


Europe Beckons?


To the Editor:


AndrewBary’s comment about Europe


beckoning investors is very nuanced


(“Treasury Bonds Are Now Riskier Than


Stocks,” Up & Down Wall Street, Sept.


6). In 2002, I invested heavily in Munich


Reinsurance after 9/11, when the stock


went down.


Disclaimer: I’m a professional rein-


surer, and I know what insurance/reinsur-


ance stocks do after big losses. The prob-


lem in this case was the dot-com bust


later that year. The stock never got back


to the purchase price for various reasons.


It did offer a good dividend. However, the


German government took 30% off the top


when my tax rate here was in the low


teens. So while I had a capital loss when


I sold last year, I also lost on the divi-


dend end. I wouldn’t recommend Euro-


pean stocks for Americans.


ROBERTKEITH


Brooklyn,N.Y.


TheChinese Tariff Dividend


To the Editor:


ExanteData’s Jens Nordvig is concerned


that a 30% tariff on all Chinese goods


would negatively impact U.S. consumption


(“ ‘Incredible Volatility’ Could Hit the


Currency Market,” Interview, Sept. 6).


Here is a solution, which could be


called the “Chinese tariff dividend.” A


30% tariff would annually collect $150 bil-


lion on $500 billion of Chinese imports,


generating $600 per U.S. adult ($1,200


per married couple) annually. Congress


should legalize the distribution of this


Chinese tariff dividend to all adult U.S.


residents. This payment would be very


simple to administer as a credit on tax


returns.


PAULMATTEN


Naples, Fla.


StoriesBehind the Stories


TheReadbackisanewpodcastby


Barron’sthattakesyouinsideour


newsroom and our latest stories.


We’reatthebeginningofaglobal


aging boom—and nations are fac-


ing mounting challenges. This


week on The Readback,Barron’s


ReshmaKapadiajoinsAlexEuleto


talk about how four countries are


dealing with the retirement crisis.


Signuptodaywhereveryoulisten


to your podcasts or head to


Barrons.com/podcastsfor more


information.

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