September16, 2019 BARRON’S 43
Mailbag
Mailbag
“TheSenatemustdemonstrateresourcefulness–and
perhapsalittleinspiration–toimprovetheretirement
landscapeformillionsofretirees.” ROGERW.FERGUSONJR.,New York
SENDLETTERS TO:
[email protected]. To be considered for
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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.