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I don't think about it. If we lost one pension we'd be ok. If we lost both pensions it might require some adjustment. If it happens we'll figure it out.
I will be a FERS pension retiree and learned long ago that worry about anything will never impact an outcome negative or positive. But that doesn't mean that I did not consider the possibility of a pension reduction or elimination of COLAs on the annuity part of my 3 legged stool FERS retirement plan. And for that reason I max contributed to my TSP/401K for most of my service years, and additionally since I am able to first claim a widow's Social Security survivor's benefit that allows me to delay taking my own higher benefit at 70. And if need be I can survive on both those income streams if need be. Actually, what I will likely withdraw annually from my TSP combined with my age 70 Social Security benefit what will remain of that income after taxes is pretty much what I live on now after taxes, Medicare, TSP contributions, etc. are deducted.
Survive on 1
Thrive on 2
100% working income replacement on all 3 legs
IMHO, yes, be concerned that all pensions will go poof.
In fact, the federal reserve note will go poof as well.
(See Title 12 USC Sec. 411 for more details)
Since 1933, and the state of emergency, no lawful money has circulated. And the ever debased "dollar bill" keeps losing value / inflates. That's great for debtors, but is not so good for everyone else.
Thanks to hyperinflation, a copper cent from 1910 is worth two "dollar bills" today. In fact, the Coinage Act of 1965 debased all fractional coin to match the worthless "dollar bill."
Oh, right, just legislate ever higher "minimum wages" that drive up tax revenues without a complaint from the workers.
- - - -
So what are viable options?
Shift "investments" to real things like land and house, that one can establish a vocation and work from home. Or have spare accommodations to rent out.
You might also create a microfarm. Chinese farm holdings average just 0.6 hectares (1.48 acres).
(Check your state laws concerning the difference between private property and real estate. You will be pleasantly surprised to find that private property is not subject to taxation, regulation nor restriction.)
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"48 years in MD, 18 in NC"
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Location: Greenville, NC
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I am amazed at the number of people that put 100% faith that their government run pension plan is telling the truth. The following link goes to Yale Law. The discussion is about teacher pension plans. If you just do a quick scan you can see that just the teacher pension plans are currently underfunded by trillions of dollars. If you were to add in all of the state run pension plans, the numbers come up in the tens of trillions of dollars underfunded. Now most assuredly, at least one of the posters in this thread must be at least a little worried?
In-so-far as state constitutionally guaranteed pension plans go, you can't get blood out of a turnip. The states will ultimately, one by one, start declaring bankruptcy. Then the courts get to decide who gets paid and who doesn't. Whole nations declare bankruptcy so don't try to tell me that your state can't.
In-so-far as state constitutionally guaranteed pension plans go, you can't get blood out of a turnip.
While you can't get blood out of a turnip, the ultimate backstop for underfunded public sector pension plans is Real Property. People move, wealth moves, but Real Property stays put. Thus, we can expect property taxes to go up - if needed - to make up any shortfall in public sector pension obligations.
Quote:
Originally Posted by Richard Martin
The states will ultimately, one by one, start declaring bankruptcy.
Unlike a municipality or other local authority, there is no provision for a State to declare bankruptcy. The State cannot seek the Court's protection from debts. The State has taxing authority.
Even if The State were to have a political crisis/political gridlock such that pensions were not paid, The Courts would almost assuredly step in and order The State to do so.
Quote:
Originally Posted by Richard Martin
Whole nations declare bankruptcy so don't try to tell me that your state can't.
I'll tell you: The State cannot file for bankruptcy protection, as there is no court in which such a filing can occur. It is undefined. It would, of course be, a political crisis - but there would be no filing for bankruptcy protection.
I'm a little concerned - anyone with a pension would be foolish to think that they're exempt from issues. Having said that, our 401k is in great shape and there's the ole third leg re social security.
There's all kinds of ways for our plans to go sideways. If our pension fails and the market kills our 401k, despite the measure in place to limit damages, we won't be alone. Man plans, God laughs.
Words like safety, chaos, when the public pension collapses. Sound like you think riots might happen.
No a even greater shortage of teachers, police and fire fighters with predictable outcomes. Just witness the uproar now at the Manhattan Corrections Center with the death of Epstein and staffing shortages from budget cuts.
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