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Old 10-04-2012, 08:30   #21
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Originally Posted by Dennis in MA View Post
Pension funds don't invest in risk-free investments. They have a "prudent man" diversified portfolio. 7% long-term (30 years) is NOT unreasonable.
7% for 30 years is not unreasonable--to fund benefits which are not inflation adjusted and are based on this year's salary.

But every pension system I've seen bases your pension on the last few years' salary--i.e., the highest possible ones--and gives increases in benefits for inflation.

7% is not unreasonable--but 7% above inflation is.

Last edited by devildog2067; 10-04-2012 at 08:33..
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