Closing the Racial Wealth Gap in Retirement Readiness

Link: https://knowledge.wharton.upenn.edu/article/closing-the-racial-wealth-gap-in-retirement-preparedness/?utm_campaign=KatW_Monthly2023&utm_medium=email&utm_source=kw_campaign_monitor&utm_term=7-2-23&utm_content=Closing_the_Racial_Wealth_Gap_in_Retirement_Readiness

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One factor undermining older Americans’ ability to prepare financially for retirement is the debt burden they carry. Increasingly, adults are carrying debt into retirement, according to Mingli Zhong, research associate, and Jennifer Andre, data scientist at the Urban Institute.

Their presentation on “Racial Differences in Debt Delinquencies and Implications for Retirement Preparedness” tracked some 4.8 million adults age 50+ who had credit bureau records. They found that the median debt amount for older households with debt was about three times higher in 2016 ($55,300) than in 1989 ($18,900 in real 2016 dollars).

The authors also reported racial disparities in debt levels. Compared to an older adult in a majority-white community, a typical older adult in a community of color is more likely to have any type of delinquent debt, carry a higher balance of total delinquent debt, and have a higher balance of medical debt in collections. The older adult living in a majority-white area has a higher balance of delinquent student loan debt and delinquent credit card debt, they also found.

Author(s): Olivia S. Mitchell, Sylvain Catherine

Publication Date: 6 June 2023

Publication Site: Knowledge at Wharton

Quotes of the Day on Rent Inflation By the Fed and Property Managers

Link: https://mishtalk.com/economics/quotes-of-the-day-on-rent-inflation-by-the-fed-and-property-managers/

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According to data from the U.S. Census Bureau, moving rates for Americans declined from 12.8% in 2021 to 12.6% in 2022.

But what is it for 2024?

My guess has been 9 percent in a range of 8 to 11 percent or so. But we will not know that for two more years.

Author(s): Mike Shedlock

Publication Date: 13 May 2024

Publication Site: Mish Talk

Pension Funds Are Pulling Hundreds of Billions From Stocks

Link: https://www.wsj.com/finance/investing/pension-funds-stocks-bonds-679b8536?st=v0qwhq895irsqxn&reflink=desktopwebshare_permalink

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Stock portfolios at large pension funds had a blockbuster run. Now, managers are cashing out.

Corporate pension funds are shifting money into bonds. State and local government funds are swapping stocks for alternative investments. The nation’s largest public pension, the California Public Employees’ Retirement System, is planning to move close to $25 billion out of equities and into private equity and private debt.

Like investors of all kinds, the funds are slowly adapting to a world of yield, where they can get sizable returns on risk-free assets. That is rippling throughout markets, as investors assess how much risk they want to take on. Moving out of stocks could mean surrendering some potential gains. Hold too much, for too long, and prices might fall.

Author(s): Heather Gillers, Charley Grant

Publication Date: 18 Apr 2024

Publication Site: WSJ