Hybrid Savings Mean System Failure
By way of presenting an example, I’ve estimated the effects of an underperforming market on the current pension system for state workers and teachers and on the proposed system, including the hybrid component.
The upshot is that the hybrid isn’t less expensive unless the fund returns less than 5%, and if returns are that low, the total pension system will be well above the costs that have us all so concerned for next year.
You mean to say government has come up with an unsustainable solution to an unsustainable problem? That must be a first. I finally convinced the wife we need to live elsewhere. This is a good thing because once she’s convinced, it’s a done deal. We just met with our financial adviser and we are about five to eight years out from retiring and bailing out. That gives us some time to do the research. It’s a heart breaker. We have a ton of family here but it’s a no-brainer.
“government has come up with an unsustainable solution to an unsustainable problem?”
Well said. It’s looking that way. I’m very much hoping that someone can demonstrate otherwise.