Juggling Dynamite

Forced savings is necessary for the future stability of workers, retirees, the broader economy and our tax system.  The state of Oregon recently joined four other US states in requiring employers to automatically enroll workers in a retirement savings plan.  This is a step in the right direction, but the second critical part of the equation is to keep capital risk low and protect the funds from trust abusing financial sales firms.

More than 30 million full-time workers don’t have access to a retirement plan at their workplace, nor do millions of part-time or independent contractors. Oregon is among five states in the country now requiring employers to automatically enroll workers in a Roth IRA retirement savings plan. Employees can opt out, but if too many do, the plans could fail.  Here is a direct video link.

I am just reading Rich Roll’s book “Finding Ultra” and highly recommend it.  His interview in this recent #EatForThePlanet podcast is also worthwhile.

If you are interested in the wellness space, you are likely familiar with Rich Roll. If not, Rich is a 51-year-old, vegan, ultra-endurance athlete (and we’re guessing you’re probably already pretty impressed by that sentence alone), who is also a bestselling author, host of a highly popular podcast, boasts over 140,000 followers on Instagram, oh and he was recently named “The World’s Fittest Vegan” by Men’s Health Magazine. In the world of wellness influencers, Rich stands above all the rest, known for not only his remarkable athleticism but also his unique and disarmingly honest brand. Today, Rich lives in southern California with his family and says his life is an “embarrassment of riches.” But if you met him about a decade back, you would hardly be able to recognize him.   Here is a direct audio link.

The International Monetary Fund has stepped up its warning on the economic and social risk of the synchronized housing bubbles that have billowed around the world on QE-driven mania, particularly since 2013.  You can read their April report here:  Global Financial Stability Report April 2018.

Some key takeaways are summarized in this article, see Sydney, Melbourne house prices are now global, IMF warns

“…during the past three decades house prices have become increasingly synchronised across countries, especially among major cities.

“Thus, policymakers cannot ignore the possibility that shocks to house prices elsewhere may affect domestic markets.”

“Increasingly, house prices have become determined at the global level,” the IMF said in the report.

“…a decline in external demand may exacerbate the challenges of stabilising household balance sheets, financial markets, and economic activity…

Worryingly for investors who like to believe houses are “always safer than stocks”, the IMF report cautions that “the dynamics of house prices are similar to those of other financial assets”.