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Yeah, it's a nonsensical conclusion. Here it's the WCTPT that manages the Teamster's trust. They're in better shape than most but also got hit hard by the 2008-2009 downturn. Why? Because like everyone else they're invested in equities.
What hurts private pensions isn't interest rates. It's inflation rates. Unlike public pensions, most private pensions do not have COLA adjustments. If ZIRP were causing a lot of inflation, yeah, it would hurt the constant dollar value of the pension payouts. To the extent ZIRP inflates asset prices, however, that actually helps pension funds rather than hurts them. Why is that? Because pension trusts have $22 invested in equities for every $1 in cash/cash equivalents. They keep cash to make liability payments. As long as they're properly managed and funded they keep very little cash. If a pension is worried about paying out $3.50 for every dollar it's taking in, literally all it means is they aren't properly funded. If they were that wouldn't matter. They could fold tomorrow and pay out infinite dollars as they wouldn't be taking any in and be just fine if they were fully funded.
Right. Pensions funds as well as everyone else are being pushed into extremely risky "inflated assets" which will eventually capitulate as the Ponzi scene crashes. 2008 crash? You can thank QE and "inflated assets".
Is this anyway to safeguard worker's retirement funds? Only if one believes Ponzi schemes, a la Madoff, are the way to build a secure retirement. What you are suggesting is a world give mad out of desperation because safety and security has been wiped off the map for all those not in the top 1%. There is no longer a vehicle for safe and secure planning for retirement. We are all thrown into a casino where only the Bankers win. Worker pension funds are not considered expendable.
Hopefully ZIRP will help youngsters to get up on their feet.
There's no way we can pay any interest.
It is only destroying your job market and any chance you have for a predictable planned retirement. At one time, hope want necessary. Now it is all that ZIRP leaves.
It is only destroying your job market and any chance you have for a predictable planned retirement. At one time, hope want necessary. Now it is all that ZIRP leaves.
But i think ZIRP will force boomers to spend all they have right??
We need money too.
Consumer confidence is horrible.
If these people and companies don't get out there and spend how can i start a business??
Right. Pensions funds as well as everyone else are being pushed into extremely risky "inflated assets" which will eventually capitulate as the Ponzi scene crashes. 2008 crash? You can thank QE and "inflated ".
Is this anyway to safeguard worker's retirement funds? Only if one believes Ponzi schemes, a la Madoff, are the way to build a secure retirement. What you are suggesting is a world give mad out of desperation because safety and security has been wiped off the map for all those not in the top 1%. There is no longer a vehicle for safe and secure planning for retirement. We are all thrown into a casino where only the Bankers win.
They've always invested in equities heavily, so no, they're not really being pushed into them.
Personally, I think the answer is 401ks. The idea that the employer safeguards your retirement fund is pretty dumb. It's largely outside their control. Anyway, that's why most of the private sector has switched to defined contribution.
But i think ZIRP will force boomers to spend all they have right??
We need money too.
Consumer confidence is horrible.
If these people and companies don't get out there and spend how can i start a business??
It looks grim man
The money is not going to boomers and it is not going to millennials. Everyone is losing except the top .1 of 1%. You are hoping that by taking money from boomers it will flow to millennials. A hopeless hope. Your standard of living will only continue to decline into deeper debt as will everyone else except the 1%.
They've always invested in equities heavily, so no, they're not really being pushed into them.
Personally, I think the answer is 401ks. The idea that the employer safeguards your retirement fund is pretty dumb. It's largely outside their control. Anyway, that's why most of the private sector has switched to defined contribution.
The portfolio mix was much different and the stock market of the period of great middle class growth has zero resemblance to today's Casino. There is zero debate that pension funds are being forced into riskier and more riskier assets to try to make up for the shortfall. And when the market crashes - no big deal, workers will simply get 50% less. And such is the world when Bankers Rule
OMG as in 3.5-10%? Well gosh 20% actually used to be pretty standard
Long ago in a land far away =D
Down payments have actually increased in more recent time, probably a good thing.
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