WHO or WHAT backs your pension......???

[Sourdough]

Do you think those with Military Pension should count on it.
What about a Rail Road pension.
What about Social Security.
Or a large "union" pension.
Or any city/state/county pension will survive.

If it all goes to hell, why do people think their income stream survives. That others will suffer, but not them.

 

[Weedygarden]

I think that all of pensions are invested in the stock market, except maybe SS. I think that is very dangerous for retirement programs. If and when the stock market crashes, so do our pensions.

 

[Supervisor42]

I think that all of pensions are invested in the stock market, except maybe SS. I think that is very dangerous for retirement programs. If and when the stock market crashes, so do our pensions.

That depends on which companies and 'who' gets to pick the stocks in the funds.
Even if you pop the hood on 'safe' mutual funds, your money is still invested in stocks.
I'm lucky, I get to pick the stocks in mine.
Example:
I started investing in the evil power company that powers the southeastern states in 1985 and hold a lot of their stock today.
I have lived thru 2 serious recessions, and people would miss their mortgage payments... but never their power bill.
Needless to say, the stock or the dividend payments, never blinked. (electric pun)

 

[Neb]

The Princess is focused on diversification.

Real estate rental property
Gold silver
Diverse stocks

So no single point of failure would be devastating.

Ben

 

[Mountain trapper]

The stock market is a very safe place to keep one's money for long term investments. Sure it bounces up and down some, but when it drops its time to buy more stock. Historically the stock market has always recovered and has always gained. I am totally fine with much of my money being invested in the stock market. A few years before I retired I cashed in one of my pensions and invested it in stocks, smart move. My wife has 2 pensions, but unfortunately she doesn't have the option of cashing out.
We have many other investments besides stocks. To me it's kind of foolish to depend solely on just a pension, stocks or SS. Diversity is critical to enjoying a comfortable retirement. Oh, and start investing early.

 

[Supervisor42]

The Princess is focused on diversification.

Real estate rental property
Gold silver
Diverse stocks

So no single point of failure would be devastating.

Ben

Diversification rulz!

I remember guys that worked for a big company and had a great 'pension' waiting for them when they retired....
Until the company went bankrupt and they discovered that 100% of their pension money was in company stock, which became worth $0.

 

[OldSchool]

It's kinda amazing how some things work out. Sure there are up's and down's .... but as long as 'the market' survives and recovers .... all is fine. I just wouldn't put all my eggs in that basket.

Like this post if you think I'm preaching to the choir.

 

[OldSchool]

Diversification rulz!

I remember guys that worked for a big company and had a great 'pension' waiting for them when they retired....
Until the company went bankrupt and they discovered that 100% of their pension money was in company stock, which became worth $0.

It has happened. How well it panned-out for the preps committing the crime.... visit them in prison for an interview.