Municipalities and Cities cannot fulfill their obligations to pay government workers who retire their promised generous pensions and these same people who DON'T work for the government and who have not saved enough have NO MONEY to support these government retirees.
Not to mention all the debt the government is taking on. Even if they did save for retirement the value is being eaten up or will be eaten up by inflation.
If you’re depending on anybody else to support your retirement, you’re in trouble. Invest in tangible assets and sell them when you need cash.
I am actually giving serious thought to suspending my 401K contributions, because I think the government is getting damned serious about exercising the Theresa Ghilarducci option and seizing it.
I’ve always wondered what would happen if millions of people have nothing to retire on and the government can’t help them. And it will never go back to the way it was before SS when the next generation would take care of their elders. There are way to many narcissists for that to ever happen.
what will happen is that the government will punish those who sacrificed to save, and reward those who never did.
At least a corp/biz whom offers pensions are on the hook; along with the shareholders.
Those promised by GOVT include the above AND the taxpayers (though you had NO say in the matter, bargaining or the like)
WORLD of difference. Even if govt unions are ‘lawful’, there’s still the matter of 5th and 13th.
My major issue is that the funds included in my ADP account are earning 1% - 2% annually after fees - nuts when the market keeps hitting records. I don't even keep up with inflation.
The fund managers that designed this crop of 401(k)s have hidden fees and charges that absorb most of my potential profit.
For those people that can't set aside the max - $17,500 annually per spouse - there is little chance that those folks will ever retire.
The Blackstone CEO does not go far enough back in history. If he went back to 1915 instead of only going back to 1955, he would realize that people went to work, saved for their wife’s old age, and worked until they died doing whatever it was they did.
Maybe we should turn the clock back 100 years rather than just 60 years.