Over the past several years I have written a LOT about the global pension crisis.
We tend to not talk about it now, but the days of 8% returns are long gone. People much smarter than me, like Warren Buffett, have talked extensively about this dilemma for retirees.
Which means retirees only have three options:
- Take more risk
- Save more
- Retire later
Now, I won’t dive into these three at all. But, I personally believe they highlight a key fiduciary dilemma:
In a market of low equity and fixed income returns, what are the elderly to do?
Hopefully in a very substantive way. Ironically in a very simple way:
That’s it. No more management fees.
How? Replicate the funds. 24/7. And provide that fund information to everyone. 24/7.
Imagine if every investor knew every day what their funds held?
That is the puzzle I am solving now via “Replicas”.
I want to give everyone worldwide back 100% of their fund management fees. It may not solve every problem. Would it mean less risk? Maybe more savings? Or maybe earlier retirement?
Yes. That is what motivates me. It is a simple, elegant way to solve a global problem.