3 ms·
> As far as I can tell, your average Joe or Josephine not only does not invest in these vehicles, they cannot! The absolutely do, even if they might now realiz
by qeternity 5y ago
> As far as I can tell, your average Joe or Josephine not only does not invest in these vehicles, they cannot!
The absolutely do, even if they might now realize it. The stickiest and most sought after capital for funds is typical from pensions or large asset managers.
- asdfasgasdgasdg 5y agoI feel really bad for anyone whose pension is controlled by an active manager. They'd be much better off with that value in the S&P 500. Fortunately pension funds are insured to some degree in the US, so if a pension fund failed, the cost of making the pensioners whole would really be paid by the taxpayer, not the average person. But in the specific case of Softbank, Saudi Arabia and a few other named billionaires provided more than half of the seed capital.
- kortilla 5y ago“Insured to some degree” is not “insured”. The pensioners could take a huge cut.
- asdfasgasdgasdg 5y agoFrom what I can read the amount of the guarantee is about 60k/year at standard retirement age. https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum... Is my reading of this incorrect? Do a large fraction of pensioners draw more than this? I had assumed not but maybe I'm wrong?
- ghaff 5y agoI don't think so. Public sector pensions are a bigger deal than (mostly legacy) private sector pensions but the guarantees are still relatively high compared to typical payouts.