A digest of timely information and insight about finance, investing, and retirement.

How economic incentives have created our dysfunctional medical market| Medium
There are 10 economic rules that seem to govern the U.S. medical market, and there are real-life examples that show how they come into play. Economic forces and incentives that motivate our health system often lead to medical practices that are not especially good for our health — or our wallets.

American workers’ big disconnect about retirement | MoneyWatch
“Wishful thinking” could be one way to describe many Americans’ expectations about retirement. When the modest financial resources that most workers have accumulated and the longer lives we’re all living are considered, the math just doesn’t add up to workers’ expectations about when they can retire and what their standard of living in retirement will be.

Where to retire in Mexico on $20,000 | US News
Durango, Mexico, is an amenity-rich city with great infrastructure, a welcoming population and a very affordable real estate market. The low cost of living is complimented by the dollar’s strength versus the Mexican peso. The weather is ideal for many retirees. Skies are clear blue and nights are cool, making for great sleeping. This is a clean city whose well-kept streets are lined by buildings and structures more reminiscent of old Europe than Latin America.

Vanguard warns of worsening odds for the economy and markets | New York Times
The chances of a recession by the end of 2020 are mounting and the prospects for the American stock market in the next decade have worsened appreciably. Those are prognoses, not facts. But they’re not just offhand projections, either. They are the sober assessments of Vanguard, the $5 trillion asset management firm. And they suggest that the current good times may amount to a reprieve: an opportunity to make sure that you are prepared for a storm.

Here’s why you shouldn’t retire early—even if you can | MarketWatch
The FIRE movement, short for “financial independence, retire early,” is burning up on the internet. Hundreds of anonymous bloggers (they tend not to reveal their identities because they’re still employed and are afraid of losing their jobs) share their goals of leaving their 9-to-5 jobs and write about how they plan to do so. Some choose to give up their careers entirely, while others decide to freelance in the industry they work in or try an entirely new part-time job. But there are financial and emotional consequences of early retirement, from giving up potentially high earnings to living on a shoestring budget and forgoing what can make life enjoyable.

3 steps toward fixing America’s retirement system | CBS News
The U.S. retirement system clearly has shortcomings that are leading to widespread insecurity among older workers. In recognition of this anxiety, recent meetings in Washington, D.C., focused on much-needed modernization as the Bipartisan Policy Center (BPC) launched its Funding Our Future initiative. The initiative focuses on three significant changes that could significantly improve retirement for many U.S. workers: putting Social Security on a sustainable financial path; closing the retirement plan coverage gap; and encouraging employer-sponsored retirement plans to offer lifetime retirement income options.