Zimbabwe Moves to Set Up Interim Govt as Mugabe is Apparently Ousted

•  Nigeria, UK, US others call for calm, respect for Zimbabwe’s constitution

Okechukwu Uwaezuoke, Tobi Soniyi in Lagos and Omololu Ogunmade in Abuja

With the Zimbabwean military insisting that its intervention in the southern African country’s politics Wednesday was not a military coup d’état, indications were that the troubled nation might be exploring an interim administration as an option out of the apparent political logjam.

The military had rolled out the tanks in the early hours of Wednesday, placing President Robert Mugabe and his wife, Grace, under house arrest in an apparent forceful takeover of government that was greeted by muted reactions from the globe’s leaders and international organisations.

President Muhammadu Buhari led the pack in urging caution, calling for calm, peace and respect for the constitution of Zimbabwe.

The governments of the United Kingdom, United States, China and South Africa were similarly inclined with the United Nations (UN), European Union (EU) and African Union (AU) urging an amicable resolution of the impasse.
Perhaps aware of the substantive objection of the world order to unconstitutional takeover of government and the abiding commitment to democratic rule, Zimbabwean military leaders have been strident in their claim that their action was not a coup.

“We assure the world that this is not a military takeover of government,” an army spokesman said in a televised statement on state television network, adding: “We are only targeting criminals around him (President Mugabe) who are committing crimes that are causing social and economic suffering in the country in order to bring them to justice. As soon as we have accomplish our mission we expect that the situation will return to normalcy.”

Addressing Mugabe as the president and commander-in-chief of the Armed Forces, the military spokesman gave assurances that the president and his wife were safe and sound and that their security were guaranteed.

Although the military spokesman did not give details of how the soldiers would carry out their mission, informed analysts warned Wednesday that the military itself might have been sharply divided, leaving the country with no other option than an interim arrangement that would be based on a power sharing arrangement between the emerging contending forces.

Zimbabwe slipped into the current impasse, following the sacking of Vice-President Emmerson Mnangagwa by Mugabe in what many opposition politicians see as concealed move by the president to position his wife to take over power in 2018.

The sack immediately attracted a threat by the head of the Armed Forces of Zimbabwe, General Constantino Chiwenga, warning that the military would not hesitate to step in if the issue had to do with protecting the revolution.
Mnangagwa, a veteran of the liberation wars that won independence for Zimbabwe, is reportedly widely respected in the older cadre of the military while Mugabe’s wife, Grace, too is said to be popular among the youths of the ruling ZANU-PF with strong influence among younger elements in the military.

The military, therefore, would appear not unanimous, a situation that is said to be heading the nation towards an interim arrangement if the country is not to descend into chaos.

Nigeria’s President Buhari in a statement by his media adviser, Mr. Femi Adesina, urged all political and military stakeholders in Zimbabwe to avoid any action that might plunge the country into unnecessary conflict and impact negatively on the entire region.

According to Buhari, “Every attempt must be made to resolve all contentious issues by constitutional means in Zimbabwe to save the country from avoidable political instability.”

South African President Zuma also called for caution, asking Zimbabwe’s defence forces to show restraint.
He expressed hope that the military would not move and do more damage.

He said: “I am hoping that the situation is going to be controlled so peace and stability comes back to Zimbabwe.”
Zuma’s office said the South African’s president would send special envoys to Zimbabwe and Angola in the light of the unfolding situation in the Republic of Zimbabwe.

Zuma is the chairman of the Southern African Development Community (SADC) which includes Zimbabwe and 14 others.
“The President is sending the Minister of Defence and Military Veterans, Ms. Nosiviwe Mapisa-Nqakula, and the Minister of State Security, Adv Bongani Bongo, to Zimbabwe to meet with President Robert Mugabe and the Zimbabwean Defence Force,” Zuma’s office said.

From Britain also came words of caution. Its Foreign Secretary, Mr. Boris Johnson, said it was crucial for Zimbabweans to refrain from violence.

According to him, “At the moment it’s very fluid and it’s hard to say exactly how this will turn out. I think the most important point to make is that everybody wants to see a stable and successful Zimbabwe. I think we’re really appealing for everybody to refrain from violence. That’s the crucial thing.”

The United States advised its citizens living in the country to “shelter in place” until further notice and urged its embassy’s staff to remain in their homes until the situation improves.

China said to be Zimbabwe’s biggest trading partner, said it was closely watching the situation and expressed the hope that the relevant parties could properly handle their internal affairs.

The UK government also asked its citizens living in Harare to remain safely at home or in their accommodation until the situation becomes clearer.

It said: “Due to the uncertain political situation in Harare, including reports of unusual military activity, we recommend British nationals currently in Harare to remain safely at home or in their accommodation until the situation becomes clearer. “

The European Union toed a similar line, calling for a peaceful resolution to the crisis in Zimbabwe.
“The recent political developments in Zimbabwe, and their spillover, including in relation to the country’s security forces, are a matter of concern,” an EU spokesperson said, adding: “We call on all the relevant players to move from confrontation to dialogue with the aim to a peaceful resolution.”

While the United Nations Secretary-General Antonio Guterres appealed for calm, non-violence and restraint, Sky News quoted an unnamed African Union (AU) spokesman as saying that the takeover in Zimbabwe had all the elements of a coup.

More specifically, however, African Union leader Alpha Conde, who is also Guinea’s president, said the AU condemned the actions of military chiefs in the southern African country, adding that they were “clearly soldiers trying to take power by force”.

“The African Union expresses its serious concern regarding the situation unfolding in Zimbabwe,” he said, before demanding “constitutional order… be restored immediately” as he called “on all stakeholders to show responsibility and restraint”.

The insurrection in Zimbabwe, which the military’s supporters called a “bloodless correction”, had effectively ended Mugabe’s 37-year long rule.

The roads leading to the main government offices, parliament and the courts in central Harare were blocked by armoured vehicles and the country’s radio station seized even as taxis ferried commuters to work nearby.

The calm atmosphere in the capital belied the tense political climate even as there was a cloud of uncertainty around the whereabouts of the 93-year-old Mugabe and his wife, although one of the coupists, Major General Sibusiso Moyo, according to AP, said they were being held by the military.

But BBC had reported South African President Jacob Zuma as saying the nonagenarian had been placed under house arrest in Harare. A statement from the South African leader’s office, according to BBC, also said that Mugabe had told Zuma in a phone call that he was fine.

There were also speculations that the military intervention might be a bid to replace Mugabe with his sacked deputy, Mnangagwa, as troops, who said they were targeting “criminals” were seen patrolling the streets of Harare.
On Monday, Chiwenga had stated his preparedness to “step in” to end a purge of Mnangagwa’s supporters. “We must remind those behind the current treacherous shenanigans that, when it comes to matters of protecting our revolution, the military will not hesitate to step in,” he was quoted by Reuters as saying.

Coming on the heels of his threat on Tuesday, four armoured tanks were seen heading towards Harare.

Touted as Mugabe’s likely successor before he was fired on November 6, the ousted Mnangagwa was a long-serving veteran of the southern African country’s liberation wars of the 1970s. His ouster was seen as a ploy to pave the way for Mugabe’s wife, Grace’s eventual succession of her husband.

Culled from Thisday

Should Retirees Use Robo Advisers?

We took four services for a test drive. Here’s how they compared.

Financial-service companies are rolling out robo-advisory products to help baby boomers produce steady streams of retirement income. Illustration: Carl Weins for The Wall Street Journal

By

Anne Tergesen

Robo-advisory services that pair algorithms with human help have long been popular with millennials because of their low fees. But as baby boomers increasingly embrace the trend, too, many companies are adding features for retirees.
These services used to focus mainly on helping clients save for financial goals such as retirement. Now, they also offer tax-efficient strategies for turning nest eggs into steady streams of retirement income, as well as recommendations on Social Security, Medicare and long-term-care insurance.
Client demographics explain the shift. Industry leader Vanguard Group says 85% of those enrolled in its $93 billion Personal Advisor Services are over age 50. Among participants in Charles Schwab Corp.’s Intelligent Advisory service, 53% are older than 55.
“Eighty percent of investible assets are held by people 50 and over,” says Matt Fellowes, chief executive of United Income Inc., a new service backed by investors including Morningstar Inc. that focuses on people ages 50 to 70.

To see what people in or near retirement can get from a robo-type service, we test drove offerings from Vanguard, Schwab, United Income and Betterment LLC—with the firms’ knowledge and support—using data from “Ellen and Greg,” a hypothetical 65-year-old couple in suburban New York who are about to retire.
We answered questions about the couple’s annual income ($300,000), after-tax spending ($126,000), savings ($2 million), and desire to sell their $1.5 million home to buy a $1.75 million Manhattan apartment.
The process took from 10 to 45 minutes, depending on whether we let the services estimate the couple’s spending or took the time to manually enter details including their budget.
Using screen-sharing technology, we spent about an hour with advisers at each firm. We got answers to key questions, including whether the couple can afford to retire, when they should claim Social Security, and how they should allocate their investment portfolio.
While we were impressed with much of the advice overall, we found some important differences between the services.
Here are our reviews:

Betterment Premium

Price: 0.4% (with no fees on balances above $2 million), plus investment fees of 0.07% to 0.16%.
Minimum investment: $100,000
Review: Our adviser, Garrett Oakley, said Ellen and Greg have a 97% chance of being able to maintain their desired spending until age 90—Betterment’s default life expectancy—even after using the proceeds from selling their $1.5 million home, plus $400,000 in savings, to purchase a $1.75 million apartment. (The $400,000 would cover the difference in price, plus capital-gains taxes and transaction fees on the home sale.)
Still, to minimize the drain on savings and find a way to pay for long-term-care insurance, Mr. Oakley advised Ellen and Greg to purchase a slightly cheaper apartment.
For new Medicare enrollees, Betterment often recommends traditional Medicare plus a Part D prescription-drug plan and a supplemental “Medigap” plan. Although the alternative, private Medicare Advantage—which operates like a health-maintenance or preferred-provider organization—often has lower premiums, it can expose participants to higher out-of-pocket costs if they go outside a plan’s network, Mr. Oakley said.
Betterment recommended that Ellen and Greg invest 56% in stocks and 44% in bonds at the beginning of retirement and scale back to 30% in stocks and 70% in bonds over time.
Pro: The program includes tools that estimate expenses based on a client’s ZIP Code and income and can link to a client’s Social Security benefits statement.
We appreciated the guidance with Medicare.
Con: Betterment’s default is to assume clients claim Social Security when they retire rather than recommending claiming dates that are likely to produce the highest cumulative lifetime benefits.

Schwab Intelligent Advisory

Price: 0.28% (with payments capped at $3,600 a year), plus investment fees of 0.07% to 0.22%.
Minimum investment: $25,000
Review: Our adviser, Andrew Porter, ran through a checklist of questions and told Greg and Ellen to review their will and monthly budget, obtain quotes for long-term-care insurance, and set up an emergency fund to cover three to six months of expenses, tasks the other advisers addressed as well. Mr. Porter raised Ellen’s life expectancy to age 96 from the program’s default age for women of 93, due to her family’s longevity.
Schwab gave our couple a 45% chance of having enough to buy the apartment and maintain their spending in retirement through age 91 for Greg and age 96 for Ellen. The problem, Mr. Porter said, is that after selling their $1.5 million home to pay for a $1.75 million apartment, they will have to withdraw $600,000 from their savings to cover the price difference, plus capital-gains taxes and transaction fees on the home sale.
To boost their odds of success, Ellen and Greg should reduce their budget by $1,700 a month or buy a cheaper apartment, Mr. Porter said.
Mr. Porter recommended a portfolio of bonds, dividend-paying stocks, real-estate investment trusts and other income-producing investments from firms including Vanguard, Schwab and BlackRock Inc.
Pro: The program is easy to use. It lets users drag-and-drop pictures of goals (“new home,” “travel”) into their financial plan and assess the impact of reducing spending, working longer or saving more. It also offers a choice between a 10-minute “express” sign up and a more detailed 45-minute version.
Users don’t have to decide whether to become a client until the financial-planning process is complete.
Con: Schwab recommended a 12% allocation to cash—which was much higher than what the other services advised and could be a drag on returns in a rising market. (Its other recommendations: 54% in stocks, 29% in bonds, 5% in commodities.)
A Schwab spokesman said “cash is an important asset class in a diversified portfolio” and is something “most investors care about,” especially when in or near retirement.
Mr. Porter instructed Greg and Ellen to enroll in Medicare as soon as possible. We were hoping for more detailed guidance on navigating the choice between Medicare Advantage and traditional Medicare—guidance Schwab says its advisers are able to provide.
Schwab’s default assumption is that investors will claim Social Security at full retirement age. The company, however, says its advisers can identify claiming dates designed to produce the highest cumulative lifetime benefits.

United Income

Price: 0.5% to 0.8% (with discounts for accounts valued at more than $500,000), plus investment fees of 0.1% to 0.25%.
Minimum investment: Financial plans and Social Security advice are free; $10,000 for those services plus investment management; $300,000 for everything in the lower tiers plus a dedicated adviser.
Review: Ellen and Greg’s adviser, Ben Meirowitz, gave them a 99% chance of having enough to last until Greg is 97 and Ellen is 102, even if they buy the $1.75 million apartment. To maximize their odds, Mr. Meirowitz told them to delay claiming Social Security until 70 and live on IRA withdrawals in the meantime.
United Income recommended that the couple invest the money they will need for essentials, such as food and housing, more conservatively than the money they will need for luxuries and health care.
To project the couple’s future spending, the company used results from a national study that finds, for example, that higher-income clients face smaller annual increases in health-care costs.
United Income avoids long-term-care insurance because it believes the market is unstable. To cover those costs, Mr. Meirowitz suggested Ellen and Greg invest money earmarked for health care more heavily in stocks, which have higher potential returns.
When designing portfolios, United Income estimates the lifetime value of clients’ Social Security benefits and—because those benefits are guaranteed—adds them to the bond side of the portfolio. To balance out that higher bond allocation, United Income advised the couple to put 65% of their investment portfolio in stocks.
Pro: For clients who pay 0.8% a year, United Income takes on such tedious tasks as filing for Social Security and Medicare, something the other services don’t offer.
The company assigns clients willing to pay 0.8% a year to a specific adviser.
You can create and update a financial plan and talk to an adviser up to four times without becoming a client.
Con: Unlike the other services, United Income doesn’t allow clients to link their bank and other financial accounts to its software, so either the adviser or the client must periodically update those values manually.

Vanguard Personal Advisor Services

Price: 0.3%, plus investment fees that range from 0.04% to 0.12%
Minimum investment: $50,000
Review: Our adviser, who identified himself only as Bryan, gave Greg and Ellen a 94% chance of success, assuming both live to 100. That’s premised on the idea that Ellen and Greg can spend slightly more than the annual amount they will need from their portfolio to supplement Social Security when the markets do well, but will have to cut back a bit when stocks decline.
Vanguard recommended 60% in stocks and 40% in bonds. The adviser suggested replacing non-Vanguard with Vanguard funds in tax-deferred accounts, but maintaining the status quo in taxable accounts to avoid triggering capital-gains tax bills. (Vanguard says clients who want to retain existing funds can do so.)
To maximize the couple’s lifetime Social Security benefits, Bryan advised the lower earner, Greg, to file at 66, so Ellen can claim a spousal benefit while delaying her own benefit until age 70.
Pro: Users don’t have to decide whether to become a client until after they review the financial plan.
Vanguard assigns clients with $500,000 or more to a dedicated adviser
Con: None that were immediately apparent.
It’s important to note that robo-advisory services aren’t for everyone. People with complicated needs or who need or want a lot of hand-holding may be better off with independent advisers.
Yahoo finance

Trump’s grade on the economy ticks back up to A-

Rick Newman

In the year since Donald Trump won the U.S. presidency, earnings have crept upward, employers have added 1.8 million jobs, and the stock market has soared by 22%. That’s enough to boost Trump’s grade on the economy to A- in the latest installment of the Yahoo Finance Trumponomics Report Card.

Trump’s initial grade was a B when we launched the report card in May. Strong job growth — including the manufacturing sector — and the seemingly unstoppable stock market pushed his grade to B+ over the summer, then to A- in September. The grade fell by one notch after a weak employment report for September, which was largely due to hurricanes that slammed Texas and Florida. But hiring came back strong in October, pushing the grade back to A-.

Our Trumponomics Report Card measures six key economic indicators under Trump compared with six prior presidents at the same point in their presidency, going back to Jimmy Carter in the 1970s. Moody’s Analytics provides the data, which we convert into letter grades. (Here’s our complete methodology.) Job growth was stronger at the same point in the first terms of Jimmy Carter in 1977 and Bill Clinton in 1993. The stock market did better in the early days of Barack Obama and George H.W. Bush. But Trump is presiding over a kind of Goldilocks economy that isn’t exactly roaring, but its doing reasonably well all around. Here’s how he measures up on our six indicators:

Source: Moody’s Analytics, Yahoo Finance

With every update to the report card, we point out that Trump inherited an economy that had been steadily improving for years. The pace of job growth today is roughly the same as it was during the last two years of the Obama presidency. The stock market began to recover from post-recession lows all the way back in 2009, and has mostly gone upward since. It won’t truly be the Trump economy until he’s been in office for at least a year, maybe more.

Trump’s tax plan will impact the economy

Yet Trump is also pushing for policy changes that could have a powerful impact on the economy —both positive and negative. The Republican tax-cut plan he backs would boost corporate profits and stock values, if it passes. Trump has been rolling back regulations, another move that’s good for businesses. Some analysts think such moves have already goosed stock prices, partly because of real changes and party because of expected ones.

Source: Moody’s Analytics, Yahoo Finance

Trump is also pushing some changes that might spook markets and depress hiring – most notably, revisions to the North American Free Trade Agreements. Trump has threatened to withdraw completely from NAFTA if Canada and Mexico don’t offer major concessions. So far, his bark has been worse than his bite, but corporate executives familiar with ongoing negotiations say they’re worried.

By the middle of 2018, Trump policies should have a more direct impact on the economy. By then, we’ll know whether Republicans who control Congress are able to pass tax cuts. The fate of NAFTA will be clearer, as well. Then will come the 2018 midterm elections, which will be a referendum of sorts on how Americans feel about the Trump economy. For the time being, it is one thing Trump has going for him.

Yahoo news

Republicans push ahead with U.S. tax bill as Democrats sharpen attacks

The U.S. Capitol dome is pictured in the pre-dawn darkness in this general view taken in Washington, October 18, 2013. U.S. lawmakers launched an effort to resolve budget differences in a less confrontational fashion on Thursday as Washington picked up the pieces from a political crisis and 16-day government shutdown that has slowed the economy and undermined the country's international standing. REUTERS/Jonathan Ernst (UNITED STATES - Tags: POLITICS BUSINESS)

By Amanda Becker

WASHINGTON (Reuters) - Republican lawmakers on Monday began revising their proposed overhaul of the U.S. tax code, as Democrats pointed to the loss of popular deductions as proof the legislation was an assault on the middle class.

A draft bill unveiled last week by Republicans in the House of Representatives, if enacted, would be the biggest restructuring of the tax system since the 1980s and the first major legislative victory of the Trump presidency.

One of the first changes agreed to on Monday, related to carried interest, would go towards fulfilling one of President Donald Trump's campaign promises.

Republican Representative Kevin Brady, chairman of the House tax-writing panel, offered to make smaller portions of Wall Street financiers' income eligible for a lower capital gains tax rate.

It was one of many revisions that are expected as the House Ways and Means Committee amends the tax bill. Brady pledged to lawmakers that they would have a chance to propose their own changes. "Let me assure you this is the beginning of the tax reform process," he told the committee.

Although Republicans generally support the bill's broader themes, including a sharp cut in the corporate income tax, there are rumblings of dissent over other elements, including repeal of the deduction for state and local income tax (SALT) payments.

New York, California and other high-tax states would be hard hit by the removal of that deduction, a fact seized upon by Democrats to bolster their argument that Trump's plan is a gift to the wealthiest Americans and the corporate sector.

"There are a lot of people expecting a tax cut who will be big losers under this bill," Representative Bill Pascrell of New Jersey, a Democrat on the House Ways and Means Committee, said as the tax-writing panel convened to consider the bill.

An analysis of how taxpayers would be impacted by the bill from the nonpartisan Tax Policy Center issued on Monday was later withdrawn due to an error. TPC said that its analysis contained an error related to a proposed child tax credit and that it would release a revised version as soon as possible.

The White House argues that tax cuts are needed to boost economic growth and create jobs.

The linchpin of the plan is the reduction of the corporate tax rate to 20 percent from 35 percent and establishment of a 25 percent tax rate for "pass through" businesses, which currently pay income tax rates as high as 39.6 percent.

With Democrats united in opposition to the plan, Republican defections from a few traditionally Democratic-leaning states could be enough to torpedo it in the House.

Brady has already agreed to retain the deduction for property tax payments up to a cap of $10,000 as part of a SALT compromise and has said he would be open to raising it.

Brady's carried interest provision would lengthen to more than three years from one the amount of time Wall Street financiers must hold assets in order to be eligible for a lower tax rate.

Carried interest is a share of an investment fund's profits – typically about 20 percent beyond the return guaranteed to investors – that goes to the general partners of private equity, venture capital and hedge funds.

Under current law, high-income fund partners pay the long-term capital gains rate of 20 percent on their carried interest income, instead of the 39.6 percent individual tax rate that applies to the ordinary wage income of high earners.

MARKET RALLY ON EXPECTATIONS

Securing congressional passage of the tax plan is critically important to Trump, who has yet to get major legislation through Congress since taking office in January, including a healthcare overhaul he promised as a candidate last year.

Investors are adding to the pressure. The expectation of deep tax cuts has helped fuel a stock market rally during Trump's time as president, with the broad S&P 500 index up about 14 percent.

The Senate, where Republicans have a 52-48 majority, is developing its own version of the tax legislation, which would have to eventually be reconciled with the House version before it is sent to Trump for signing.

Several Republican senators have said they would have a problem voting for any tax bill that significantly increased the deficit. The House bill is projected to add $1.5 trillion over 10 years to the $20 trillion national debt.

Reuters in Yahoo news

15 million people forced to work until they drop as they don't pay into a pension

A probe by the Financial Conduct Authority reveals a third of workers – roughly 15 million people – are not saving towards retirement

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Tricia Phillips

Millions of people don't pay into a pension (Image: Moment RF)

Millions of people face the prospect of working into their 70s or 80s to make ends meet amid a pensions timebomb.
A probe by the Financial Conduct Authority reveals a third of workers – roughly 15 million people – are not saving towards retirement.
Those who are depending on the state pension could be in for a rude awakening.
Writing in the Mirror today, FCA chief executive Andrew Bailey says: “Around 15 million adults who are not retired are not paying into a pension...
“While the state pension is a hugely important part of retirement provision... for many people it is not enough to maintain living standards.”
He adds the FCA’s largest ever survey into the nation’s personal finances, a poll of 13,000 people, shows “many are not saving enough for their retirement”.
The average amount being put away is 4.2% of earnings, experts recommend at least 12%.
The FCA’s report Financial Lives, due out today, comes as experts predict the pensions crisis will worsen.
With the population getting increasingly older, the state pension age keeps rising in a bid to reduce the escalating pensions bill.
The looming turmoil comes despite many people being automatically enrolled in workplace pension unless they have opted out.
Former pensions minister Sir Steve Webb said: “The good news is over eight million people have been enrolled into a workplace pension in the last five years.

“But many of these people are only putting a few pounds a week into a pension...
"Contribution rates now need to be steadily increased if people are going to be able to afford to retire.”
Pensions expert Tom McPhail, of brokers Hargreaves Lansdown, said: “For all the success of auto-enrolment..., it is worth remembering there are almost as many who have been left behind.”
Those with no pension pot may have to claim extra benefits, mean­ing more strain on public finances.

Saving for retirement is very important but it isn’t easy for people who have to make ends meet today.
Around half of 55 to 64-year-olds are expected to live to 90 but only 7% of them expect to live to this age. Many savers look forward to leisure early in retirement rather than worry about care costs later on.
Self-employed and unemployed people are, respectively, twice and three times as likely as those in jobs to have no savings.
It’s not all doom and gloom. There are early indications auto-enrolment by employers increases saving among those early in their careers.
And 97% of 18 to 34-year-olds contributing to a pension said it had been organised by their employer.
But 11% of those aged 18 to 24 and 13% of 25 to 34-year-olds missed paying bills or credit repayments in three of the last six months.

Auto Enrolment explained

This is what you need to know about automatic enrolment, who qualifies, how much you get and how to boost your pension further

• What is automatic enrolment? - A government initiative launched in 2012 to help more workers to save towards their retirement. Bosses have to automatically enrol staff into a workplace pension scheme and they both have to make minimum contributions.
• Who qualifies for AE? - Workers aged between 22 and state pension age, earning over £10,000. Some younger workers and those earning less may be entitled to join but will not be automatically enrolled.
• How much should I be saving? - For a comfortable retirement pension experts recommend you put away 12% to 15% of your salary.
• Can I save more than the legal minimum into my workplace pension? - It depends on the scheme your employer runs. Often firms let you save more and some generous bosses will match what you put in up to a certain percentage of your salary.
• What’s my state pension age? - Depends on when you were born. Currently it is age 65 for men and gradually increasing to 65 for women. From 2019 it will increase for men and women to reach 66 by October 2020. Then it will rise to age 67 by 2028. It continues to be kept under review so it may change.
• How much is the state pension worth? - Those who reached their state pension age before April 6, 2016, are on an old system that pays £122.30 per week. Those who reached it after April 6, 2016, come under the new version which is £159.55 per week for those with the full 35 qualifying years of National Insurance contributions.
• How can I save if I’m self-employed? - If you are under the age of 40 you can set up a Lifetime ISA. While you don’t get tax relief on contributions you will get a 25% bonus on savings from the Government.
  
  Culled from Pension Mirror

Life assurers rake in billions from pension transfers-by Oliver Ralph and Josephine Cumbo in London

Standard Life Aberdeen and Royal London among biggest beneficiaries from £50bn flow

Life assurers rake in billions from pension transfers Standard Life Aberdeen and Royal London among biggest beneficiaries from £50bn flow Regulators fear the large number oif pension transfers could lead to a new mis-selling crisis © Chris Batson Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) 19 Print this page yesterday by Oliver Ralph and Josephine Cumbo in London Britain’s biggest life assurers have gained billions of pounds of new business as a result of contentious pensions reforms. In the past two years, about £50bn has been released from corporate pension schemes as tens of thousands of people swap their guaranteed retirement income for a lump sum, according to Mercer, the consultants. One pensions administrator, Broadstone, said that Standard Life Aberdeen, Royal London, Prudential and Aviva had been among the biggest beneficiaries of the pension transfers it has processed. Standard Life Aberdeen is one of the few companies to disclose details about the amount of money it is taking in from defined benefit transfers. In the first half of this year, Standard Life took in about £900m to its drawdown products from the transfers. Standard Life completed its merger with Aberdeen Asset Management in August. Aviva’s platform business, which allows customers to hold several financial products in the same place, took in about £750m from defined benefit transfers in the same period. £38,000 Charges over 20 years on a Standard Life Sipp from a £500,000 investment Other companies do not provide similar breakdowns, but their wider pensions businesses are clearly booming. Royal London’s overall sales of individual pensions and drawdown products jumped 64 per cent in the first half of the year. At Prudential, drawdown sales were up about 30 per cent, while LV’s overall pensions business grew by a similar amount. Earlier this week, St James’s Place reported £5bn of inflows into its pension business in the first nine months of the year. A combination of new freedoms on how people spend their pension savings and a sharp rise in transfer values for those in defined benefit plans has led to a boom in transfers, which regulators worry is creating the potential for a new financial mis-selling crisis. The Financial Conduct Authority is investigating whether independent financial advisers are giving suitable advice on transfers, where savers swap monthly payments guaranteed for life for a lump sum which they then invest in a personal pension plan. The parliamentary work and pensions committee is also planning an investigation. The transfers are a lucrative source of long-term income for assurers, which have suffered as sales of traditional pension products, such as annuities, have shrivelled in recent years. Putting £500,000 into a Standard Life Self-Invested Personal Pension (Sipp) for 20 years, for example, would generate £38,000 in accumulated charges. “If you get the money, you have 20 years of fees coming through,” said David Brooks at Broadstone. Over the last 30 years, the words life insurance and mis-selling have gone together like horse and carriage Ned Cazalet, Cazalet Consulting As a result, the assurers have not been shy in helping financial advisers who provide guidance to pension scheme members. Commission payments to advisers have been banned since 2013, but the insurers are doing what they can to assist them. Some companies, including Prudential and Standard Life, pay for valuation reports, called TVAS, which are a vital part of the transfer advice process. These reports can cost hundreds of pounds if bought independently. Other companies provide advisers with useful information. Scottish Widows, for example, has a dedicated pension transfer website, giving advisers guidance on how the transfers work. “I see a lot of providers commenting on transfers, providing articles and assistance,” said Mike Morrison, head of platform technical at AJ Bell. But Alistair Cunningham, financial planning director with Wingate Financial Planning, said the “increasing number of insurers offering training and marketing material is concerning, particularly as some is not as impartial as I would hope”. “Insurers seem in a unique position where they gain custodian fees for assets transferred on, but may well try to shrug off any responsibility where the advice fails subsequent suitability tests,” he added. Recommended UK retirees using ‘pension freedoms’ for alcohol and gambling FCA urged to launch full probe into pension transfer advice Regulator warns on poor advice over cashing in pension pot However, assurers say the guidance they provide gives them comfort that advisers are giving good advice. “We provide a lot of ammunition to help advisers reach the right decision, so we don’t have the same concerns that we might do otherwise,” said Vince Smith-Hughes, head of pensions business development at Prudential. Ned Cazalet, head of Cazalet Consulting, said assurers were aware of the risks associated with transfers. “Over the last 30 years, the words life insurance and mis-selling have gone together like horse and carriage,” he said. “The memories of mis-selling have not gone away and the industry has had to pay millions in redress. This is an area where people are treading gingerly.”
Culled from Financial Times

FG moves to name looters

Buhari orders Information, Justice ministries, EFCC, ICPC to compile list

By Adetutu Folasade-Koyi and Godwin Tsa, Abuja
President Muhammadu Buhari has directed all relevant agencies to compile documents on names of all looters and make the list public.
The directive is in compliance with an earlier ruling of a Federal High Court in Lagos, which ordered the federal government to release names of high-ranking public officials from whom public funds were recovered.
The suit was initiated by SERAP, based on government’s disclosure in 2016, of funds recovered from some high-ranking public officials and private individuals. Government ddid not appeal the ruling.
On July 5, 2017, Justice Hadiza Shagari made the order following a Freedom of Information (FOI) suit by Socio-Economic Rights and Accountability Project (SERAP).
Attorney General of the Federation and Minister of Justice,  Abukabar Shehu Malami (SAN) disclosed this at a meeting with a SERAP delegation, in his office, in Abuja, yesterday.
The AGF confirmed the meeting with SERAP and the president’s directive to Daily Sun, yesterday.
However, he did not give a timeline for the publication but gave a condition: As as long as it does not amount to sub judice.
The court also ordered the federal government to detail the circumstances under which funds were recovered, as well as the exact amount of funds recovered from each public official.
Last year, the Ministry of Information and Culture published details of the recoveries, which showed that N78,325,354,631.82, $185,119,584.61, £3,508,355.46 and €11, 250 were recovered between May 29, 2015 and May 25, 2016.
Also released were recoveries under interim forfeiture, which were a combination of cash and assets, during the same period: N126,563,481,095.43,   $9,090,243,920.15, £2,484,447.55 and €303,399.17.
Anticipated repatriation from foreign countries totalled: $321,316,726.1, £6,900,000 and €11,826.11.

Sun

What’s next after planning your retirement? Help your children and grandchildren plan for theirs

Published: Oct 17, 2017 9:55 a.m. ET

It’s never too early to start helping your family prepare for long-term financial security

By

SethMeisler

Everett Collection

Then-Vice President and Barbara Bush surrounded by their grandchildren in 1987.

You’ve worked hard over the years, saving for your retirement. So hard, in fact, that you are well-prepared to face your golden years. You’ve also worked hard caring for children and possibly grandchildren, teaching them life skills, so that they could one day leave the nest and be successful on their own.
With both of these feats accomplished, you have the luxury of asking yourself, “What’s next?” Perhaps it’s time to consider preparing for your descendants’ retirements.
It may seem like a long way off, but it is never too early to start helping your family prepare for long-term financial security. I’m not suggesting that they be coddled. Rather, I’m suggesting that you provide a financial jump start to help them be more successful in their lives and careers.
Why is this important?
•The most common goal that I see among my retiree clients is their desire to make sure that their children and/or grandchildren will be in good financial shape.
•We are currently living in a period with reasonable Social Security benefits, relatively modest health care costs, and a relatively low tax rate (compared to historical tax rates). The future is less certain.
•Retirees today have benefited from a significant rise in the market dating back to the mid-’80s. While we cannot predict the future, many believe that returns for both stocks and bonds will be comparatively lower over the next 10 years then they have been in the past.
The traditional way we think about leaving assets to our children is through an estate plan and life insurance after we are gone. But, there are many reasons why it may be beneficial for both you and your children to make financial gifts while you are still alive.
One advantage of making a gift while you are alive is that your children can use the gift when they need it. I see many pre-retirement clients who are working hard to build up a significant amount of retirement assets through 401(k) savings plans, but who lack liquid assets to draw upon for spending today. Essentially, they are asset rich and cash poor. Helping them prepare for retirement may mean helping them bridge the gap, allowing them to achieve pre-retirement financial goals, such as buying a house, paying for college, or building a business.
In addition, as we continue to live longer and longer, waiting to transfer your assets via a will or trust may mean your children are well into their own retirements before they receive anything from you. Another benefit is that by giving during your life, you can watch your descendants benefit from your benevolence.
There are many important factors to consider when making lifetime gifts to your family. The annual gifting limit is $14,000 per person, per child or grandchild. This means that a couple can gift up to $28,000 per descendant without filing a gift tax return. You can certainly gift more than this amount, but you will be required to file a gift tax return and this will reduce your lifetime exemption. In addition, certain states have rules associated with estate taxes if the gift was more than $14,000 within a certain number of years prior to death.
During your lifetime, you can make a gift to your descendants in the following ways:
1.Gifting money so that a child is able to increase their savings inside a tax deferred or tax-free account.
2.Gifting money by opening up a custodial account you control.
3.Making an outright gift.
4. Gifting money so that a child is able to increase their savings inside a tax deferred or tax free account.
The first gift option available to parents and grandparents is gifting money so that a child is able to increase their savings inside a tax deferred or tax free account, such as a Roth IRA or Roth 401(k). Some common examples include:
Funding a Roth IRA
A Roth IRA is an account where the contributions are made after tax and the growth is tax free. This account works very well when future taxes are expected to increase. The contribution rules are similar to a traditional IRA, but with different income limits. The maximum contribution is $5,500 per year ($6,500 if over 50). You can gift money to a child allowing them to use that money to contribute to a Roth IRA.
For example, if your child is a teenager who earned $2,000 working a summer job, you could match the earnings by funding a Roth IRA for you child, gifting him or her $2,000 to open the account. The advantage of setting up a Roth IRA for your child today is that this account could grow to close to $23,000 in fifty years at a 5 percent annual growth rate. Please note that most children have absolutely no idea what a Roth IRA is. Not only are you giving your child a jump start toward financial security, but it is also a great opportunity to teach your child some financial planning basics.
Gifting to an adult descendant so that they can maximize their contribution in a Roth 401(k)
A Roth 401(k) is a type of 401(k) where dollars are invested after tax (as opposed to a traditional 401(k) where the dollars are invested pre-tax). If you are under 50, the maximum amount that can be contributed to either a traditional or Roth 401(k) is $18,000. If you are over 50, you can save an additional $6,000. At a 25 percent tax bracket, saving $18,000 in a Roth 401(k), would be the same as saving $24,000 in a traditional 401(k).
Gifting money by opening up a custodial account you control
The second lifetime gift option available to parents and grandparents is gifting to an account you control that will eventually go to the child. Some common examples include:
Opening a 529 Plan
A 529 plan is a specific account offered through states that allows for tax-free growth if the distributions from the plan are used for college or college-related expenses (called “qualified expenses” by the IRS). Saving for your descendants’ education expenses gives them a head start on their retirement savings by allowing them to start their careers with less, or even no, debt. They can immediately start contributing to their employee retirement plans, thus securing their own retirement, as opposed to having cash redirected towards student loans.
In addition to having tax-free growth, 529 plans help reduce your taxable estate and, depending on the state, may offer state tax incentives for the individual making the gift. In addition, the donor has control over the assets and can change the named beneficiary on the account. Donors need to be aware that the quality of 529 plans varies wildly by state — this includes fund choices as well as underlying expenses. Morningstar, as well as other firms, publish an annual survey of 529 plans. Finally, this gift is great for college education, but does not work well if the funds are used for another purpose. The reason being is that the income is then taxed at ordinary rates, plus there is a 10% penalty.
Opening a UTMA
A Uniform Trust to Minor’s Account (UTMA) is a taxable account that can be used to give money to a minor. One advantage to this account is that there is a little more flexibility than a 529 plan. And, a UTMA offers a tax advantage over an outright gift because the first $2,100 is taxed at the child’s tax rate. In addition, both the principal and income can be used at any age. A UTMA could allow a child, in the future, to draw on that account and allow him or her to put more money into their retirement account.
However, there are some disadvantages to UTMAs. The first is the so-called kiddie tax rule, which states that any income above $2,100 is taxed at the parent’s rate. The second problem is that once the child turns 21, the money belongs to him or her and can be spent in any manner (which may not be what the donor had in mind). Finally, for college financial aid, UTMAs are viewed as being 100 percent owned by the child, and thus can decrease the availability of financial aid.
Making an outright gift
Finally, if your descendant is no longer a minor, you can make an outright gift. An outright gift can be used in any way, at any time. It can help your descendants achieve current financial goals while still adequately saving for retirement. But, direct gifts are still subject to the $14,000 gifting limitations.
There are a couple of exceptions to the gifting limitations that allow for a parent or grandparent to give more than the $14,000 limit, specifically gifts for education and medical expenses. For example, A grandparent could gift $14,000 to his or her college-student grandchild, plus pay $30,000 for college — essentially gifting $44,000 in one year. But, the gift must be paid directly to the school or medical institution. Note that “school” is not limited to a university. The definition of medical expenses is a little broader and should be reviewed with your accountant.
If you are not ready to start giving to your family today, or if they are not ready to receive gifts, it is still prudent to ensure that your estate plan is in order. Going through a flow chart and making sure that your plan minimizes taxes while ensuring that assets flow the way you intend is critical. In addition, there are several tax advantages to gifting assets after your death.
A final strategy that can be used to transfer assets to your descendants after your death is life insurance. There are a number of benefits to holding life insurance above and beyond replacing income. Life insurance can make sense to offset taxes for those estates worth more than $5.49 million. Life insurance can also provide potential income tax savings, depending on the policy type. With some policy types you can calculate the expected rate of return at the policy inception to determine if life insurance is appropriate for your specific situation.
The downside to life insurance is the cost. As such, it is important to determine if the tax benefits outweigh the cost. Finally, there are psychological benefits to having life insurance including the peace of mind to comfortably spend down your retirement assets knowing that your descendants will be cared for.
At first glance, it may seem a bit premature to discuss planning for your descendants’ retirements, especially if your children or grandchildren haven’t yet started their careers. But, helping your descendants in such a way that they can eventually retire with dignity and live independently is a great gift to your family. While these gifts can be made after your death, there are a number of tax planning, wealth accumulation, and even psychological benefits to making gifts today. Communicating with your descendants about their challenges and your desires, and helping them build a long-term road map to success will be a lasting legacy to your family.
Seth Meisler, CFA, CPA/PFS, CFP, joined Affiance Financial in 2007 as the firm’s Chief Investment Officer. Today, he also serves as one of the firm’s principals. Meiser is also a member of Ed Slott’s Elite IRA Advisor Group.
The views represented are not meant to be construed as advice. Moreover, it should not be assumed that this content serves as the receipt of, or a substitute for, personalized advice from any other professional. Affiance Financial is neither an attorney nor an accountant, and no portion of this content should be interpreted as legal, accounting or tax advice.
Securities and advisory services offered through Private Client Services. Member FINRA, SIPC. Advisory services also offered through Affiance Financial, a Registered Investment Adviser. Private Client Services and Affiance Financial are unaffiliated entities.
Market Watch in Yahoo Finance

Nigeria readies 10 startups for GITEX 2017

Isa Ali Ibrahim Pantami

The Nigeria government through the National Information Technology Development Agency (NITDA) will be promoting 10 startups at this year’s Gitex technology expo and conference holding in Dubai from October 8-12.
  
The country’s tech-ambassadors were carefully selected after a highly competitive process anchored by the Office for ICT Innovation & Entrepreneurship (OIIE) which is an arm of the NITDA.
 
The 10 are: Nicademia, SIX, Tattara, Accounteer, Beat Drone, Cloudoria, Dropque, MyPadi, Ward Monitor and MTK e-Learning will join their peers from over 60 countries at the second edition of the Gitex Startups Global Movement  which was launched last year at Gitex to be a global rallying ground for funding startups and exposing innovators to mentors and venture capitalists.
 
Gitex is the premier yearly technology event in the Middle East, Asia and Africa hosting over 185, 000 visitors from more than 140 countries. This year’s edition holds October 8-12 at the Dubai World Trade Centre (DWTC) with the theme: ‘Re- Imagining Realities -Discover Transform Innovate.’
  
Nigeria is promoting three thematic activities for its   participation this year on IT investment and exposure of indigenous. The activities are the Nigerian Pavilion, the Startup Innovation Hub, and the Africa Investment Forum (AIF) being put together jointly by the Nigerian government through the NITDA and the UAE government through the DWTC, organisers of GITEX.
 
The AIF is designed to attract to the Africa’s investment potential in ICT; the AIF will highlight Nigeria’s investment increasing portfolio for ICT investment as the continent’s largest economy and market for ICT. The AIF will be drawing participation from the technology business communities in Asia, Europe, the Americas and the rest of Africa.
 
NITDA’s Director-General, Dr Isa Ali Ibrahim Pantami, said NITDA’s remains committed to its mandate to build a technology ecosystem that thrives on indigenous manpower connected to the global IT community.
  
Pantami said young people are a critical focus of NITDA’s agenda to develop the IT sector.  “Our young people are highly talented. With more training, exposure, funding and mentorship, a thriving IT industry can be encouraged to grow within international standards so that we can not only meet our local needs but also become an IT exporting nation,” said Pantami. 

 

Guardian

North Korean celebrates successful hydrogen bomb missile test with huge street party

Thousands of residents and military leaders hailed scientists who were paraded as heroes

BySteve RobsonRachael Burford

Click to play

Pyongyang welcomes scientists & technicians behind its biggest nuclear test

North Korean celebrated the firing of its most deadly missile test yet with a huge street party.
On Sunday, the Kim Jong-Un regime claimed it had tested a hydrogen bomb, setting off a 6.3 earthquake.
Hours earlier, Jong-Un was pictured inspected what looked like a nuclear warhead being placed inside a missile.
The reckless despot appears intent on pushing the country closer and closer to military conflict with the West.
But on Wednesday, pictures released by North Korea showed thousands attending a huge rally where the scientists behind the test were paraded as heroes.
There were fireworks and music as Pyongyang was draped in nationalistic flags and slogans.

Fireworks in Pyongyang to celebrate North Korea's successful H-bomb test (Image: AFP)

Thousands filled the Kim Il Sung Square (Image: AFP)

Meanwhile, neighbours South Korea said it expected the North to carry out another missile launch this week.
In response, the country's THAAD missile defence system deployment was "tentatively" completed as US Forces Korea transported four additional missile interceptor launchers to its base in Seongju, 185 miles south of Seoul .
South Korean prime minister, Lee Nak-yon, described the situation in the north as "very grave" when he met with defence minsters in Seoul on Thursday morning.
He said the country is bracing for another missile launch on Saturday, September 9, when North Korea celebrates its founding day.

South Korea's Hyunmu-2 ballistic missile is fired during an exercise aimed to counter North Korea's nuclear test on Sunday (Image: Getty Images AsiaPac)

The four THAAD missiles arrived at the new Seongju base despite protesters blocking the road (Image: REUTERS)

Today US Forces Korea transported four additional missile interceptor launchers to its base in Seongju

"The situation is very grave. It doesn't seem much time is left before North Korea achieves its complete nuclear armament," he said.
The four THAAD missiles arrived at the new Seongju base despite protesters blocking the road.
Armored riot police protected the final parts of the controversial US missile defense system as it entered.

Kim Jong Un inspects North Korean nuclear weaponisation program (Image: Barcroft Media)

North Korea will celebrate its founding day on Saturday (Image: REUTERS)

Around 400 people reportedly took to the streets in the province of Gyeongbuk, eastern South Korea.
Footage shows dense crowds gathering and police attempting to break up the disturbance.
It contrasted with scenes in North Korea's capital Pyongyang, where civilians appeared to be celebrating the successful completion of the hydrostatic test for the intercontinental ballistic rocket installation.
The US army's THAAD system is thought to be the world's most advanced interceptor and is designed to shoot down ballistic missiles in their terminal phase of approaching a target.
South Korea is now set to hold talks with "relevant" neighbouring countries regarding the THAAD issue.

China and Russia have particularly protested the system, claiming it will further destabilise regional security and expand the US military influence in the area.
South Korea President Moon Jae-in met with Japanese Prime Minister Shinzo Abe at the Eastern Economic Forum in Russia today.
The leaders issued a jointed statement saying that it "is the time to further increase sanctions and pressures against North Korea as much as possible rather than seeking dialogue".

Culled from Mirror