Research Affliliates published a very nice primer on financial repression on Advisor Perspectives.  It’s well worth reading to get the lay of the land.  Here’s how they define financial repression: Financial repression refers to a set of governmental policies that keep real interest rates low or negative and regulate or manipulate a c...

With the elimination of traditional pensions in many workplaces, Americans are left to their own devices with their 401k plan.  For many of them, it’s not going so well.  Beyond the often-poor investment decisions that are made, many investors are also raiding the retirement kitty.

Our analysis suggests as investors in target-date strategies near retirement they become more attuned to market swings. We believe 401(k) plans cannot succeed if participants jump out of markets at the bottom and possibly miss a rebound. Plans need to have tolerable downside risk, so participants can ride the market waves.

As wages and benefits shrink, state workers are retiring in droves. On top of all the layoffs, these retirements amount to a huge brain drain of government employees, and the problem is likely to get worse given the yawning budget gaps of states from coast to coast.

Continue reading State Worker Retirements Are Soaring Across the Country

State Worker Retirements Are Soaring Across the Country originally appeared on DailyFinance on Wed, 02 Mar 2011 12:00:00.

Lots of folks have reached retirement by surprise, thanks to the Great Recession. So, if you're scrambling to come up with a Plan B and plug the financial gap created by an unexpectedly early end to your career, here are some good ideas.

Continue reading Surviving an Accidental Retirement

Surviving an Accidental Retirement originally appeared on DailyFinance on Sat, 08 Jan 2011 09:00:00.

Continue reading French Parliament Approves Raising Retirement Age, Despite Striking Workers

French Parliament Approves Raising Retirement Age, Despite Striking Workers originally appeared on DailyFinance on Wed, 27 Oct 2010 16:03:00.

Thirty out of 49 major developed countries could see their credit ratings plummet to junk status if they don't make changes soon, says a Standard & Poor's study. The biggest problem is health care spending on the elderly, particularly for long-term care.

Continue reading The Price of Aging: Will It Break National Budgets?

The Price of Aging: Will It Break National Budgets? originally appeared on DailyFinance on Sat, 16 Oct 2010 08:00:00.

Ford earnings are expected to be weaker next year due to higher costs for pensions and materials, according to a research note released Wednesday by Credit Suisse Securities. Forecasts call for pretax income from Ford's North America operations to fall to $4.2 billion in 2011 from $4.8 billion this year.

Continue reading Ford Earnings Likely to Weaken in 2011 on Higher Costs

Ford Earnings Likely to Weaken in 2011 on Higher Costs originally appeared on DailyFinance on Wed, 22 Sep 2010 14:45:00.

Total revenues were C$1.1 billion, down 16% from C$1.3 billion in the prior-year quarter, reflecting lower volumes and fuel surcharge revenues.

Operating expenses were C$853 million, down 17% from C$1.0 billion in the prior-year quarter, due to lower compensation and benefit expenses, lower fuel prices and lower materials.

Cost saving and improved efficiencies led to an improvement of 190 basis points in the operating ratio, which improved to 76.0%.

For full year 2009, total revenues declined 13% year-over-year to C$4.3 billion due to lower volumes and fuel prices, partially offset by gains in foreign currency. Operating expenses were down 17% with productivity gains, cost management initiatives, improved fuel efficiencies and lower fuel prices driving the reduction.

On a year-over-year basis, hedging provided a C$9 million benefit. Canadian Pacific has hedged between 10% and 12% of the total 2010 fuel consumption. 

During the reported quarter, the company chose to accelerate the funding of future pension obligations through a voluntary prepayment of approximately $500 million to its defined benefit pension plans. The 2010 pension contributions are currently estimated to be between $150 and $200 million.

For Canadian Pacific, 2009 was extraordinary in volume reduction and volatility. In some months, volumes were down as much as 25% to 30%. The company strengthened its balance sheet despite the tough economic environment and continued to execute on both structural and variable cost initiatives. Free cash flow at the end of the year was $483 million. Productivity gains and aggressive cost management continue to be a priority, with demand picking up gradually. However, the company faces continued uncertainty in the economy and considerable headwinds in pension expenses and foreign currency.

Since the global financial crisis struck last fall, the largest 1,500 U.S. public companies have lost a combined $280 billion from their pension funds. Assuming the stock…