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Don't you think that the people who run the pensions invest that money with those same "fund managers"?
by snarf21 9y ago
Don't you think that the people who run the pensions invest that money with those same "fund managers"?
- lotsofpulp 9y agoThey're not, they have different risk profiles. There might be some overlap, but by and large, pension funds (especially taxpayer funded) take many more risks than the usual 401k index and bond funds.
- AnimalMuppet 9y agoIf I understand correctly, this is because (at least often) the pension funds are underfunded, and have to take risks because they have to have higher rates of return, because with realistic rates of return the contributions aren't enough to reach the specified level of benefits.