Pensions, Davos, and Apple's Next CEO

What we learned about Business & Finance this week.

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Good morning. It's Thursday, Jan. 15, and welcome to this week's Business & Finance newsletter. In honor of the World Economic Forum's annual meeting next week, we're diving into all things Davos—but not before covering both Pensions and the US Mint. Have feedback for us? Simply hit the "reply" button on this email to send us a note.

As always, thank you for being a reader!

—Phoebe Bain, 1440 Business & Finance Section Editor

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The Pension Promise

How pensions work

Colloquially speaking, pensions are retirement plans that result in employees receiving a fixed amount of money from their former employers during retirement, often for life (although the technical legal definition of pensions is significantly more nuanced).

Unlike “defined contribution plans” like 401(k) plans, “defined benefit plans” like pensions make it so the employer, rather than the employee, determines how much money is set aside for the plan and how it’s invested (often in stocks, bonds, and other assets). In retirement, monthly payouts include both the principal and investment earnings. Employers often use factors including salary and tenure to calculate investment amounts.

Derived from the Latin word for “payment,” pensions were the most common type of retirement plan in the US until the mid-1990s. 401(k) plans and IRAs are now the most popular options—only about 20% of workers in the US participate in pension plans today. There were roughly $69T globally managed assets in pensions as of 2024.

Also, check out ...

> "Roman military pensions" were among the first known pensions in history. (Watch)

> Most pensions are subject to federal income taxes. (Read)

> Was the 401(k) a mistake? (Listen)

> The US states with the strongest pension plans. (View)

Explore everything else we've found on Pensions.

In partnership with FinanceAdvisors

Little-Known RMD Strategy Approved by the IRS

Every year, many retirees are required to pull money from their retirement accounts, even if they don’t need the money. Those withdrawals can push some into a higher bracket and inflate their Medicare premiums.

Strategic Roth conversions could flip the script—depending on your tax situation. If your advisor isn’t modeling multi-year conversions (or providing these 4 other services), your finances may be shortchanged.

Review these 5 tips to know if you should connect with a fiduciary who focuses on retirement income and tax-efficient planning.

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Minty Fresh

The US Mint, explained

Within the US Treasury Department, the US Mint produces all circulating US coins. It not only issues the four coin denominations currently in circulation (pennies, nickels, dimes, and quarters), but also medals of honor, collector-focused coins (like the half-dollar and $1 coin, which can also be accepted as legal tender), and more. Notably, it doesn’t produce paper money; the Bureau of Engraving and Printing handles that.

The US Mint was created in 1792 after Congress passed the Coinage Act. Today, to get its coins into circulation, the US Mint works with the Federal Reserve, which distributes the new currency to Reserve Banks. The Reserve Banks then distribute those coins to depository institutions (think: commercial banks).

To combat counterfeiting, the US Mint implements security features into the designs of its coins. Any US coin that the Treasury no longer makes is still considered viable United States currency.

Also, check out ...

> A live bald eagle named Peter once lived at the original Philadelphia Mint. (Read)

> The oldest currencies still in use. (View)

> The US Mint was among the first federal agencies to hire women. (Read)

> How coins are made, for kids. (Watch)

Explore everything else we've found on the US Mint.

Swiss Scene

Davos 101

The World Economic Forum is best known for its annual meeting, held each January in Davos, Switzerland, where political leaders, CEOs, and other prominent figures gather to discuss global challenges and opportunities. Founded in 1971 by German economist Klaus Schwab, the forum’s gathering—known colloquially as “Davos”—has grown into a central convening space for elite cross-sector dialogue, combining public sessions with private meetings that often influence policy, business strategy, and diplomacy behind the scenes.

Davos is both influential and controversial, having hosted important diplomatic encounters, significant cultural moments, and outspoken critics. The event often draws scrutiny for its exclusivity, perceived lack of diversity, high costs, and emissions from private jets. The annual guest list typically exceeds 3,000 and routinely includes heads of state, top executives, and international officials.

Beyond Davos, the WEF operates year-round through multiple “centres” focused on areas including technology, climate, health, finance, and geopolitics, which aim to coordinate public-private efforts on some of the world’s most complex challenges.

Also, check out ...

> Attending Davos can cost hundreds of thousands of dollars. (Watch)

> Go behind the scenes of Davos with "60 Minutes." (Watch)

> Listen to the official weekly podcast of Davos. (Listen)

> Davos is also one of Europe’s most well-known winter sports destinations. (Read)

Explore everything else we've found on Davos.

One Story We're Taking Stock In

As Apple begins accelerating plans for longtime CEO Tim Cook's succession, some eyes are turning to Apple's head of hardware engineering, John Ternus. So what would Apple's future under this low-profile engineer look like? This article (one of my favorites of the week) attempts to paint that picture. As one source put it, "If you want to make an iPhone every year, Ternus is your guy."

> The man who could be Apple’s next CEO. (Read)

> Apple started out in a garage in 1976. (Watch)

> Everything you've ever wanted to know about Apple. (1440 Topics)

In partnership with Finance Advisor

Why the Wealthy Are Quietly Ditching ETFs

For years, exchange-traded funds (ETFs) have been the go-to investment strategy for everyday investors. But ETFs aren’t built for tax control. So, while money continues to pour into them, private wealth firms are shifting.

That's why many affluent investors are reviewing their portfolios with tax-aware advisors. See if your plan is optimized. Connect with up to 3 vetted fiduciary advisors focused on tax-efficient planning.

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Best of the Week

We curate hundreds of resources into 1440 Topics each week. Here are some of our favorites from the world of business and finance.

> How much groceries cost Americans 10 years ago vs. today.

> The average monthly salary in major global cities, visualized.

> Eight things Medicare doesn't cover.

> How many credit cards is too many?

> The impact of institutional investors on the housing market, explained.

> How sleep deprivation impacts the US economy.

> The psychology of exclusionary ads.

> What is private mortgage insurance?

> The highest inflation in US history, visualized.

> Does the Dow still accurately reflect the modern economy?

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Pensions, Davos, and Apple's Next CEO