Looks like Rhodes Island is the worst with the pension funds only funded to 42%.
More of the legacy of the Baby Boomers who pass on disaster to the next generations. Baby Boomers = the “worst generation” in contrast to the “greatest generation” forebearers.
The 25% loss estimate that Forbes put on is just that, an estimate, so it may be overstating the problems in some states. But adding that 25% back to some of the funds still makes a lot of them look ugly.
It also begs the question of how underfunded private and personal pensions are.
Considering the massive hit the market just took – I am pretty pleased with Texas sitting at 68% (my wife is a teacher so I do have a personal stake in the hunt). Adding back the 25% and we were sitting above 90%. The State of Texas runs a balanced budget – so unlike California there is not a massive debt that can be defaulted on. We also have no State income tax.
[i] More of the legacy of the Baby Boomers who pass on disaster to the next generations [/i]
A nasty, uninformed comment unworthy of a Christian.
Pension-plan underfunding is a real problem. But the severe underfunding we see now reflects the sharp decline in the stock market over the past 6 months. The underfunding will ease as the market recovers. The real issue is not the degree of underfunding (or overfunding) at a given time but whether contributions and investment returns will in the long run, under responsible assumptions, support the agreed-on benefits.
We might do well to avoid sweeping statements about a group of 80 million people. But we can fairly say that the trend over the past two decades (during which Boomers had political influence) has been toward better disclosure of and better accounting for unfunded pension liabilities.
Not to worry. The federal government will step in to insure that all state and other public sector employees will get everything they’re entitled to. It’s only the rest of us who will go without.
What is Oregon doing right and how can we do the same?
Honorable mention for Idaho, New York, Deleware, Florida, North Carolina, Utah, and Wisconsin. All of them are ranked above 75% despite the 50% downturn in stocks since January 2008.
What are all of these states doing right that the rest (mine included) are doing wrong? Answer that and we’ll know everything (in the words of Olive Oil).
” But the severe underfunding we see now reflects the sharp decline in the stock market over the past 6 months. The underfunding will ease as the market recovers. ”
If the market “recovers” it will only be because of the hyperinflation that Obama (like Bush) is about to inflict on us. I am a Boomer and I agree. The Boomers are the WORST generation in the history of the US. They built a Madoff style ponzi scheme involving SS and 401k/IRAs while avoiding the difficult cuts in entitlements and increases in taxes needed. Then they made sure they got out in time to collect while leaving their children and grandchildren holding the empty bag.
The Boomers have ruined every institution they have gotten their hands on. They enacted a social democratic welfare state. They are eviscerating mainline Protestant Christianity. They unleashed awful social trends with their 60’s era Cultural Revolution. Their business practices are alternately cutthroat and gimmicky. The sooner the whole crew can be hauled off into their socialized nursing homes the better.
I might quibble with #8’s prescriptions, but just quibble.
[blockquote]”The common man, finding himself in a world so excellent, technically and socially, believes it has been produced by nature, and never thinks of the personal efforts of highly endowed individuals which the creation of this new world presupposed. Still less will he admit the notion that all these facilities still require the support of certain difficult human virtues, the least failure of which would cause the rapid disappearance of the whole magnificent edifice.”
However, IMHO the stock market may well turn, sharply, thanks to Boomer money printing (beginning in the Clinton era). Zimbabwe’s stock market is the wonder of the world. However its combined value will not buy dinner for two. At this point, I would advise those whom I counselled in April 2008 to buy Treasuries to dump Treasuries for physical assets (paid up real estate, paid up business, commodities, and to ensure that you have a minimum of 2 weeks canned goods (preferably more).
I would also not be in a business (such as private practice medicine) where one needs to pay salaries first, and then wait for the government to pay you back. Government work (if you can get it) would be good, something like auto repair that works well in a barter economy might be better.
Actually that’s the wrong thread. I was counselling Treasuries in March of 2007 (and emptied my 401k around that time). I will find it and return. However right now I need to go see somebody.
Looks like Rhodes Island is the worst with the pension funds only funded to 42%.
More of the legacy of the Baby Boomers who pass on disaster to the next generations. Baby Boomers = the “worst generation” in contrast to the “greatest generation” forebearers.
The 25% loss estimate that Forbes put on is just that, an estimate, so it may be overstating the problems in some states. But adding that 25% back to some of the funds still makes a lot of them look ugly.
It also begs the question of how underfunded private and personal pensions are.
Considering the massive hit the market just took – I am pretty pleased with Texas sitting at 68% (my wife is a teacher so I do have a personal stake in the hunt). Adding back the 25% and we were sitting above 90%. The State of Texas runs a balanced budget – so unlike California there is not a massive debt that can be defaulted on. We also have no State income tax.
[i] More of the legacy of the Baby Boomers who pass on disaster to the next generations [/i]
A nasty, uninformed comment unworthy of a Christian.
Pension-plan underfunding is a real problem. But the severe underfunding we see now reflects the sharp decline in the stock market over the past 6 months. The underfunding will ease as the market recovers. The real issue is not the degree of underfunding (or overfunding) at a given time but whether contributions and investment returns will in the long run, under responsible assumptions, support the agreed-on benefits.
We might do well to avoid sweeping statements about a group of 80 million people. But we can fairly say that the trend over the past two decades (during which Boomers had political influence) has been toward better disclosure of and better accounting for unfunded pension liabilities.
Not to worry. The federal government will step in to insure that all state and other public sector employees will get everything they’re entitled to. It’s only the rest of us who will go without.
What is Oregon doing right and how can we do the same?
Honorable mention for Idaho, New York, Deleware, Florida, North Carolina, Utah, and Wisconsin. All of them are ranked above 75% despite the 50% downturn in stocks since January 2008.
What are all of these states doing right that the rest (mine included) are doing wrong? Answer that and we’ll know everything (in the words of Olive Oil).
” But the severe underfunding we see now reflects the sharp decline in the stock market over the past 6 months. The underfunding will ease as the market recovers. ”
If the market “recovers” it will only be because of the hyperinflation that Obama (like Bush) is about to inflict on us. I am a Boomer and I agree. The Boomers are the WORST generation in the history of the US. They built a Madoff style ponzi scheme involving SS and 401k/IRAs while avoiding the difficult cuts in entitlements and increases in taxes needed. Then they made sure they got out in time to collect while leaving their children and grandchildren holding the empty bag.
The Boomers have ruined every institution they have gotten their hands on. They enacted a social democratic welfare state. They are eviscerating mainline Protestant Christianity. They unleashed awful social trends with their 60’s era Cultural Revolution. Their business practices are alternately cutthroat and gimmicky. The sooner the whole crew can be hauled off into their socialized nursing homes the better.
Signed, A Late Boomer.
I might quibble with #8’s prescriptions, but just quibble.
[blockquote]”The common man, finding himself in a world so excellent, technically and socially, believes it has been produced by nature, and never thinks of the personal efforts of highly endowed individuals which the creation of this new world presupposed. Still less will he admit the notion that all these facilities still require the support of certain difficult human virtues, the least failure of which would cause the rapid disappearance of the whole magnificent edifice.”
~José Ortega y Gasset [/blockquote]
http://new.kendallharmon.net/wp-content/uploads/index.php/t19/article/12093/
As I recall, Iraneaus and I had this discussion previously. Those who listened to me, rather than Iraneus would have saved their 401ks/IRA (SS is beyond saving).
However, IMHO the stock market may well turn, sharply, thanks to Boomer money printing (beginning in the Clinton era). Zimbabwe’s stock market is the wonder of the world. However its combined value will not buy dinner for two. At this point, I would advise those whom I counselled in April 2008 to buy Treasuries to dump Treasuries for physical assets (paid up real estate, paid up business, commodities, and to ensure that you have a minimum of 2 weeks canned goods (preferably more).
I would also not be in a business (such as private practice medicine) where one needs to pay salaries first, and then wait for the government to pay you back. Government work (if you can get it) would be good, something like auto repair that works well in a barter economy might be better.
Actually that’s the wrong thread. I was counselling Treasuries in March of 2007 (and emptied my 401k around that time). I will find it and return. However right now I need to go see somebody.
http://new.kendallharmon.net/wp-content/uploads/index.php/t19/article/13276
http://new.kendallharmon.net/wp-content/uploads/index.php/t19/article/12093/
The archives seem to stop in 2007. However those who listened to me in Spring 2008 would have done very well indeed.
Over-promised and underfunded? Is this like the stimulus bills? Shall we never learn anything from Thucydides?