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#pensioncrisis #pensioncrisisexplained #calperspensioncrisis…(read more)
LEARN MORE ABOUT: Retirement Planning
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very informative… thanks
I absolutely cannot stand CalSTRS! I really wish that they gave teachers a choice on where and how much to put our own money. I don't like that it is a law. I'd rather be able to take my money and invest in real estate.
Higher last year .
My plan is to hope for the best and move to Mexico or Costa Rica when I retire
What a good video. Hello from Venezuela
Let me first say that citizens shouldn't have to pick up the bill for pension shortfalls. Understand that pers was over 100% funded not too long ago. Some cities stopped making their required contributions into pers. Pension board members took risky, high fees, funds for personal payouts. These funds lost a substantial amount of money. If you took away city and pers corruption, the retirement system may have had a chance. Google Villalobos.
Back in the day you worked 25 years for a company for a pension and today people can't get a job that lasts 25 years.
Defund the Government and start with the pensions.
Go To Transparent California see all salarys unbelievable !!!
https://transparentcalifornia.com/salaries/all/?s=-total&page=1
You nailed it! Great video!
Thanks. The takeaway its gonna be a crapshoot.
As an example of one of the causes of the CalPers pension problem, my ex wife retired as a community college librarian a couple of years ago and is drawing close to $100K per year as part of her pension package. She did all the things that many of these people due, like pension spiking, to maximize what she would collect for the rest of her life.
Stop beating up on pensions.I love my NYS pension cuz yes,it’s called a choice and everyone is afforded this choice to have one now,y’all stop bitching and go to work and pay your taxes so I can sit on my ass and watch Fox News all day…..LMAABO!
Pension fund managing is so mind boggling. There are so many things to consider when investing billion of dollars… domestic economy, world economy, fiat money, stocks, bonds, precious metals, inflation, job unemployment, etc. Some how though Berkshire Hathaway get by ok and ditto Goldman Sachs. It would be great if you can please analyze these firms to see what they are doing right!!!
It's a time bomb all right, especially in states like Illinois and California. Politicians have deliberately pulled the wool over the taxpayers' eyes to hide massive underfunding. The accounting they used would have put them in prison for fraud if they were managing pensions in the private sector. Because the benefits cannot be reduced, taxes will rise sharply. When politicians say they need money for schools, fire, police, etc. they are fibbing. They really need it for pensions.
Seems like a pretty good half of a discussion. You really can’t have a meaningful discussion on Cal Pers or California Pensions unless you also discuss the California rule. Also, you should be discussing the vehicle for which pension promises can be broken, (municipal bankruptcies).
Thank you for sharing this information…very informative and you made it easy to understand.
Hello Dominique, I appreciate your video and information! Great stuff. As a long time civil servant (34 years), it gives me great concern that large pension plans are severely underfunded. As you have pointed out, when 401K and 457K and other plans came up, it became necessary for individuals to become more aware of and involved in their retirement future. As one nears the retirement age for a government entity at an age of almost 60, is there a portfolio that makes the most sense for hoping for the continued defined benefit pension while also managing the contribution funds? Most financial advisors suggest that "it depends" upon your risk comfort level and retirement goals and aspirations. Do you have any insight on this?
When employees have to choose an investment they not only choose stocks but they will probably choose the stock of the company that they work for out of some misguided sense of loyalty. That of course is a big mistake. When I was employed by a bank in the 80's the rule was don't put more than a third of your portfolio in one stock. Now the rule is don't put more than a tenth of your portfolio in one stock.
Taxpayers have no defense against public employees' unions, they just get richer and richer to influence politicians. Social security workers had no choice, money was taken all their working lives, and Congress spent it instead of responsibly investing it. That is why liberals are talking tax, tax, tax, but no tax base can support the crazy retirement promises that have accumulated for non contributed endowments.
Is gov. Borrowing from pers
They could fix it in 5 minutes if they wanted to.
1. Raise the minimum age by 5yrs
2. Cap the max pay at 75%
3. Pay your own healthcare
4. Hiring freeze
5. No money for illegals
6. No money for homeless
We have hundreds of churches and
Charities
You can blame Bush and the Republicans for the pension crisis.
Greetings Sir. May I have your email address?
7:31 – stocks have had lower returns over the last 40 years?
I dont have a problem with a California public employee getting a pension of $50,000…. MAYBE…. Considering my Social Security is only about $18,000 per year and I worked just as hard as they did… BUT…. BIG BUT HERE.. There is a retire public librarian from San Diego that is collecting $200,000 PER YEAR PENSION from CalPers… YES $200,000. PER YEAR.
The ABUSES of CalPers is legendary. YES it will fail… The bankrupt judge will give pensioners 20 cents on the dollar in the near future. BLAME the LIBERAL POLITICIANS that set up this THIEVERY.
My neighbor a school teacher for 35 years, collects $150,000 per year pension… after the bankruptcy he will get $30,000 per year.
In the decades to come we will hundreds of millions of elders worldwide, including America's Baby Boomers, slipping into poverty.
"Too frail to work and too poor to retire" has become the new normal.
The looming global pension crisis doesn't affect only the active workers and retirees…entire families, young and old, will bear the financial burdens of an aging world populations.
Taken from the book: Who Stole My Pension?
By Robert Kiyosaki and Edward Siedle.
If you have the opportunity to read it, please do it.
I don't care how smart a fund manager you are, unless your trading on inside information, there are no asset classes that are going to provide adequate yield to help cover all these massive government retirement fund shortfalls. Faced with that reality, fund managers fully intend to do something they said would never be required. Force all government entities to make up for any and all shortfalls, via higher and higher taxes. Government workers are entitled to all their fully promised bloated benefits after all. It's the law! Private sector workers don't remember voting for that? That's because it was quietly enacted by bureaucrats behind closed doors, who themselves expect to receive all those same bloated pension benefits. The plan? Force private sector workers to support a bloated government worker pension system, even while most of those same private sector workers have little to no retirement benefits themselves. It's the law after all. Cutting every last government service if necessay. It's the law. How long will private sector workers continue to accept that reality? Oh yea, and bankruptcy for state government entitles isn't an option either, because you gussed it, it's the law. Bankruptcy isn't allowed. Isn't great when you have the power to make laws that you personally benifit from and can't be undone by law? And if your a government employee, don't forget to leave the state after you retire. No point in paying all those ridiculous obscene taxes you appointed your bureaucrats to implement. States that are paying retirees that moved out of state cannot tax any of those benifits. Only the state you reside in can tax it. And if that state happens to be Nevada or Texas where tax rate is zero, all the better. Why? Because you gussed it. It's the law.
Corona Baby.
So did public and private pensions around the nation invest in stocks? With the DOW down over a third due to Coronavirus crisis, would that put the funds even deeper into insolvency?
Thanks brutha that's why I still have my calspers paperwork and I'm not mailing shit in cause it's a fraud threw San Diego State I worked there and never received a W-2 form do your research people shit is real
You are says a lot but also nothing’s. The problem is the world is changing. Keep you own money and live a much simpler life.
How do I short the pension industry?
What about corporate credit? What happens when these companies are re-rated and CALPERS is not allowed to hold that non investment grade debt? If the portfolio is roughly 400 billion, 90 billion (22%) in Global Fixed Income, then how much of that is BBB corperate credit?
Then what are the knock on effects of the downgrades? Their expected returns are too high with where the money is today. The S&P 500 for example, it wouldn't surprise me to see only a 1-5% annulized return over the next decade or so.
I think the solutions to solve these problems are complex. There is so much talk on cutting and not much talk about the incentive structure that drives the long term returns.
Perhaps we could start by making managers very aligned with pensioners, compensated very well but structured in a way that makes sense and de-regulation to allow for flexibility to make good returns. It's not easy to run 400 billion but if we get great managers in their that focus on the downside and price discipline, then attractive returns are possible.
The best company to manage you retirement is “ Financialengines.com “they have managed my 401K and made me crazy return and super low fees. I can’t say enough good things about Financialenhines.com. I don’t work for the company, just want to spread the word.
Are you saying the 2012 Public Employees Pension Reform Act will have no affect on long term sustainability and ultimately CalPERS funded status?
Great job! Many excellent points, thank you for making and getting the word out. CalPERS is behind, and the outlook is not good. CalPERS should immediately try to reduce their overhead costs, prepare for increases in life expectancy, lower their discount rates, offer cash outs, and try to make their investments independent from political influence.
I mean in all honesty the Cali government whether they raise taxes or not are just going to run out of money to pay pensions & have to write IOU’s. That most likely will never get paid before folks die. They they’ll really have a problem then.
look at the lens not the view finder.. great video.. you should do one for our channel about rvs and what type of loans you should get and not get! i would push your channel hard.. hit us up if you are interested
I quit my job of 10 years. I am looking to withdraw some $ from my PERS (financial hardship), and I'm unsure if I should just leave it where it is and try to withdraw, or rollover to a traditional IRA and withdraw. I'm in my 30s. I just learned about RMD when it comes to the IRA, in other words, I'm financially illiterate. Could use some advice
So it's all Greenspan's fault?
Never depend on a pension 100%. Especially govt pensions. Governments are typically terrible with money. Always save a Roth IRA or similar on the side.
i saw this coming in my early 20's (mid 1980's), when i started wondering what would happen when the baby boomers started retiring. I just couldn't imagine the companies being able to financially afford the onslaught of the baby boomer retirees. The few people that I talked to (all had good pensions when they retire) told me that their pensions were totally safe. They didn't have to worry about losing their pensions. Now, I wonder if those same people are worried about losing their pensions or having them cut back.
One small correction to your video — unfunded pensions owed to public workers did not have to be reported on balance sheets of states, cities, and school districts until 2014 when the Govt. Accounting Standards Board passed the GASB 68 rule. Prior to that time, those pension obligations could hidden in the "comments" section of the CAFR.
Pensions are Ponzi scheme. Unless they are fully funded like Norway's public system. But all that money just came from oil, not anything anybody deposited in there. It's a scam folks. And I don't want to hear these early adopter boomers bitching. At least they are actually gonna get paid, unlike the later ones who got suckered into this obvious ponzi scheme. There's a sucker born every minute. Sooner or later everybody is gonna get tired of trying to shoulder the burden of these crying bitching ungrateful spoiled old Boomer bums. 2035 is the number to watch for the collapse to become apparent, unless something changes. We may just start exterminating old people eventually like Soylent Green.
Download my ultimate pre-retirement checklist to make sure you're prepared at: https://djh-capital.com/blog/ultimate-pre-retirement-checklist/
Pensions are so fascinating to me. They definitely seem like they were created for a different world than we live in now. Thanks for the vid.