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Post by unlawflcombatnt on Nov 1, 2008 10:56:20 GMT -6
Mike Shedlock (at Mish's Global Economic Analysis) did a great job finding out the $ losses in multiple pension funds. In the 9 months ending September 30th, the average state pension fund has lost -14.8%. The San Diego, CA, pension fund has lost an estimated -20% since the beginning of the year. The Fresno County, CA, pension fund has lost -29% over the last year. The city of Vallejo, CA, has already gone bankrupt earlier this year due in part to pension fund losses. The New York State Pension fund has lost -20% since April. Illinois's Municipal Retirement Fund (IMRF) had lost -21% of its value as of September 30, 2008. Colorado's largest government employee pension fund, PERA, has lost almost -20% of its value since the beginning of 2008--falling from $41 billion down to $31 billion on October 15, 2008. The largest state pension fund, California's CalPers fund, is expected to need a taxpayer-funded bailout in the near future. Even in Canada, many companies are expecting large pension fund losses. The full article can be found at: Pension Time Bomb Explodes In US and Canada
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Post by xtra on Jan 15, 2009 12:26:54 GMT -6
Mike Shedlock (at Mish's Global Economic Analysis) did a great job finding out the $ losses in multiple pension funds. In the 9 months ending September 30th, the average state pension fund has lost -14.8%. The San Diego, CA, pension fund has lost an estimated -20% since the beginning of the year. The Fresno County, CA, pension fund has lost -29% over the last year. The city of Vallejo, CA, has already gone bankrupt earlier this year due in part to pension fund losses. The New York State Pension fund has lost -20% since April. Illinois's Municipal Retirement Fund (IMRF) had lost -21% of its value as of September 30, 2008. Colorado's largest government employee pension fund, PERA, has lost almost -20% of its value since the beginning of 2008--falling from $41 billion down to $31 billion on October 15, 2008. The largest state pension fund, California's CalPers fund, is expected to need a taxpayer-funded bailout in the near future. Even in Canada, many companies are expecting large pension fund losses. The full article can be found at: Pension Time Bomb Explodes In US and Canada that article was way back in Nov. I bet the losses have tripled since then if not more. Do you have any update Unlawful? The meltdown has started.... denver and the west PERA lost $13 billion in a year Changes in 2010 By Michael Booth The Denver Post Posted: 01/15/2009 12:30:00 AM MST Officials from Colorado's largest public pension fund told state officials Wednesday that they need a year to count its massive losses before proposing benefit cuts or contribution hikes for the 2010 legislature. Colorado PERA staff tallied some of the fund's losses to date at the House and Senate Joint Finance Committee and warned its proposed changes next year would not "be very pleasant" for at least some of the 431,000 members and beneficiaries. PERA, which replaces Social Security benefits for most state, local government and school employees in Colorado, has seen its assets fall from $43.2 billion at the start of 2008 to $30.2 billion on Monday, legislators were told. Those remaining assets are still inflated, cautioned PERA executive director Meredith Williams, because the fund's real estate and private equity holdings will fall when appraisals are finished this year. Meanwhile, PERA is paying out nearly $2.7 billion in benefits each year while taking in only $1.3 billion in contributions from state employers and workers. The stock-market plunge and recession have set PERA's funding levels back years: Williams said PERA's 25-year investment history created 10.8 percent average annual gains through 2007; one awful year in the stock market sliced that to an 8.9 percent average over 25 years. PERA's asset drop means it cannot return to full funding as it is currently structured, according to actuaries. "Why would we not declare an actuarial emergency" and start making cuts now, asked Rep. Kent Lambert, R-Colorado Springs, saying PERA's problems should not be "relegated to yet another study." Williams said the PERA board has asked staff to put a price on every possible change, from eliminating cost-of-living increases to changing retirement ages to altering the actual benefit formulas. PERA money managers need to see markets calm down before they can predict returns and costs, Williams added. "The best minds in the world don't have any answers," he said. "As I walked over here today, the Dow Jones was down 250 points." Michael Booth: 303-954-1686 or mbooth@denverpost.com
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Post by elliotclark on Feb 28, 2009 3:55:18 GMT -6
If you ask me, it depends where you live. If you live in a developing country with politically and economically stable environment and large GDP growth rates, then it does not make sense to invest in pension scheme that seems to me quite risky and can not provide you with appropriate return. Some solve this problem by investing in offshore banking centers that provide pension financing. If I am not mistaken Bahamas provide quite flexible pension scheme, but the problem is the same as in onshore pension schemes: your return on investment is not appropriate. In both cases you keep funds so that they earn you negative economic profit meaning that you can find better places to invest elsewhere. Obviously you have a question: ok, I believe you, but where is a better place to invest. I would answer you to invest in real estate. First of all price of real estate increases with GDP and second you can rent out real estate and earn income on that. Now you may have another question: but I was planning to put away tiny amounts every month and I can not afford buying land or a building. The answer is mortgage: get a mortgage and you can even cover month repayments by the rent.
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