Pensions Taking Hits

Discussion in 'The Okie Corral' started by HalfHazzard, Mar 1, 2017.

  1. HalfHazzard

    HalfHazzard Señor Member

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    CalPers:
    https://www.bloomberg.com/news/arti...-as-bad-debts-lead-to-government-pension-cuts

    If your average IRA account holder does his math with a 7% assumed return over the long term in risky stocks, how the heck does a government run pension assume higher than that?

    Teamsters:
    http://www.nydailynews.com/new-york...urvive-pension-fund-bottoms-article-1.2982399
     
  2. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    Oh I'm sure everything is fine. They paid in!
     

  3. Mayhem like Me

    Mayhem like Me Semper Paratus

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    It's simple don't lie to them up front what the return will be on their fixed benefit pension.
    If you entice them to work a lifetime at a career that has known and measurable long term hazards to their health, don't cry poor when they expect the promised payout.
     
  4. gwalchmai

    gwalchmai Lucky Member

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    Don't worry, just increase the minimum wage and let taxes fund the retirements. Don't you guys understand simple amth?
     
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  5. DonD

    DonD

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    Ads on TV have irritated me for years. They talk about financial planning and have been assuming an 8% return for many years, a long term rate of return that simply isn't realistic and assumes too, that you never make a bad investment decision. Phony numbers. Don
     
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  6. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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  7. oldengineer

    oldengineer

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    Here in PA taxpayers are responsible for making up any shortfalls in the teacher's and public employees funds. Bethlehem Steel employees, for example, didn't do as well, even with the Pension Benefit Guarantee Corp. backing them.
     
  8. ysr_racer

    ysr_racer

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    You simply can't pay people not to work, for the rest of their lives.
     
  9. Big Bird

    Big Bird NRA Life Member

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    The answer is Hedge Funds...which have done horribly. But that's why they assume higher rates of return. They use a lot of leveraged hedge funds.
     
  10. plp

    plp

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    When I first set up my first 401K in 1992, 7% was the return on most rather conservative mutual funds. Some of my higher risk investments were getting 11%. Passbook savings accounts were getting 5.5%.
     
  11. Rellik

    Rellik Kwisatz Haderach in Training

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    Sorry DonD, you need to be calc-ing a return of 5-6%.
     
  12. Rellik

    Rellik Kwisatz Haderach in Training

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    Kali and the MoonbatMen have built their projections on 12% even years after investment firms would tell you to base your personal returns 7-8%. And it got lower over the years. I based mine on 5%, and I'm pulling 6+%.
    Like CertFunds said, just put more Ponzi in it.
    All Moonbeam needs to do is put those Mexicans to work, he's said for years that it makes them stronger, and is a benefit. There's your labor force, get too it.
     
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  13. Rellik

    Rellik Kwisatz Haderach in Training

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    I thought jesse-bumpin uglies Jackson, and slim-shady Sharpton, wackie maxie, cummings, and the rest of their ilk proved that otherwise.
     
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  14. XDRoX

    XDRoX

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    I don't pay into SS, because I'm a teacher, I pay into something called STRS. Obviously, insanely high return retirement program. It works well and always has. But like SS, as people are living longer it is becoming more difficult to pay out.

    So true story, abut a year ago at an all staff meeting at work the principal announced that our STRS percentage taken out of our checks is going to go up. Not only that but new teachers will have to work a little longer to get the same amount as older teachers. I honestly took this as good news because I understand that in order for STRS to fulfill it's promised retirement they are going to have to take more in. So I clapped when the principal made the announcement. I was the only teacher out of 110 teachers that clapped. People looked at me like I was crazy clapping at a decrease in our pay.

    It's really like these teachers did not understand what was going on.
     
  15. ysr_racer

    ysr_racer

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    Maybe they should take a simple economics class :)
     
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  16. XDRoX

    XDRoX

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    Of the 110 teachers at my work every single one is in our union except one. And it's not me. Not only am I a member of the union I'm on our negotiating team. Even though I typically side with management on most things I am still a member. They want a wide diversity of teachers on the negotiating team and I make up the far right category.

    So anyways, there is one teacher that decides to not be in our union. Would you or anyone like to guess on what he teaches?
     
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  17. HalfHazzard

    HalfHazzard Señor Member

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    Not surprised.

    Probably well versed in the free rider problem.
     
    Last edited: Mar 1, 2017
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  18. orangejeep06

    orangejeep06

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    Economics?
     
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  19. XDRoX

    XDRoX

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    Winner winner! :D
     
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  20. CAcop

    CAcop

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    Is CalSTRS trying to get to 100% funded like CalPERS?

    I ask because that is the reason why us and the city are paying a high percentage even though the economy is good.

    That and we have a 3 tier retirement plan. The new people aren't going to make it to retirement age in one piece or alive without promoting.