State Pension Funds in Trouble

[GregW]

Where would all of you sage commentators securely invest several billion dollars and achieve a higher rate of return while maintaining the security of Federal Treasury bonds? Is there a secure investment returning 7.5% available anywhere?

[HappyTexan]

Originally Posted by GregW

Where would all of you sage commentators securely invest several billion dollars and achieve a higher rate of return while maintaining the security of Federal Treasury bonds? Is there a secure investment returning 7.5% available anywhere?

Nope..Greek bonds is all that comes to my mind but they are rated junk.
Yet pension fund projections still use that high figure as do some private company ones.
Then you get the report of the "actual return" for the past year and it's a fraction of the projection.
Even some 401K company newsletters still use 6% return when projecting.

If they used current figures of 0.50% to 1% you'd see lots of red......

[malamute]

Originally Posted by totsuka

I would think some of the states like CA, Il, NY will somehow get a bailout from the feds for this problem.

Except the federal government is out of money and why would the taxpayers have to pay the lavish retirements of these over-paid-in-the-first-place state employees? Let them go on working. They don't need to retire in their 50s and have the US taxpayers working into their 70's to support their lazy selves.