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Any plan that is not fully funded, in cash, is not a pension - it's a bet - a bet that someone (else), somewhere, sometime, will assume the risk if it goes sout
by thrill 16y ago
Any plan that is not fully funded, in cash, is not a pension - it's a bet - a bet that someone (else), somewhere, sometime, will assume the risk if it goes south. Those who offer "public" pensions are the worst offenders - everyone knows the taxpayer will be on the hook for it - it's easy to promise the world to a public employee when it's not coming out of a bottom line.
- jarek 16y agoThen again, a plan fully funded in cash is a bet that you have enough money, skill, and/or luck to keep its real value, after any inflatiatory and investment influences, equal to or above what you will need when you retire.