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.

 

[elkhound]

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.

well the one thing these all have in come directly or indirectly is they require others to keep adding to the pot from which it is drawn...take midwest area teamsters...they took a huge hit and may old guys were looking at going back to work....years ago they tried to merge it with eastern section but those guys voted it down by large margin.

everything requires additions...unless you have a big nest egg sitting that will out last you.

i have a way of getting a few funds outside regular stuff...but the stupid sanctions have a lot more effect on it now than ever before...and that was something never crossed my mind or any others to be honest.

i said this in past...a modern 401(k) just might be a few acres with a small mobile home a flock of chickens and a few milk goats and sheep.

going to add my wood cook stove,sleeping bag and any roof over my head to shed water to this.

 

[Mountain trapper]

From an early age I never thought it was wise to ever depend on just one form of investment for retirement. Too many things can happen over a persons 40 year working career. Like others have said here; diversify your investments.
I started working before 401k's were available so I bought CD's. At that time the interest rates were 12-14%. That's when I started buying PM's too.
Start early and be consistent.

 

[angie_nrs]

One thing I haven't seen mentioned is annuities. I really don't like them b/c the fees are typically much too high. However, when I was young and first started my retirement savings, I trusted the guy who was our financial investor at the hospital b/c I didn't know anything about investing. I should have done my own research, but I had a new job, young kids, and other things going on. It turns out that that account is invested in an annuity. I haven't touched that account for years and it still sits there gaining in size. I decided to just leave it alone b/c my other retirement accounts are invested in the market and the large fees have already been paid on the front end.

I often wondered what would happen if an annuity fund went under? I'm sure they are highly regulated and insured so that can't happen, but I still wonder.

 

[old tex]

Who backs my retirement? The U.S. government. And I have total faith that it wouldn't stop until the last few people with jobs stop paying taxes. And the funny thing is that the money the government pays me, I pay taxes on. If you think about it I'm paying taxes on money that I earned, that I haven't even gotten (just like all of you).

 

[Mountain trapper]

I don't pay taxes on any of my retirement income. I paid the tax while I was working so that I wouldn't have to pay it now. And of course I don't pay any tax on my SS either. That is how I structured my investments many years ago.
Annuities. I personally don't like them. I would highly suggest that anyone who is interested in an annuity to investigate it very carefully.

 

[Supervisor42]

One thing I haven't seen mentioned is annuities. I really don't like them b/c the fees are typically much too high. However, when I was young and first started my retirement savings, I trusted the guy who was our financial investor at the hospital b/c I didn't know anything about investing. I should have done my own research, but I had a new job, young kids, and other things going on. It turns out that that account is invested in an annuity. I haven't touched that account for years and it still sits there gaining in size. I decided to just leave it alone b/c my other retirement accounts are invested in the market and the large fees have already been paid on the front end.

I often wondered what would happen if an annuity fund went under? I'm sure they are highly regulated and insured so that can't happen, but I still wonder.

Don't even get me started about those.
They are actually an insurance policy, not an investment.
I had one, 'once upon a time'. I actually read the statements, and could see over half of the earnings going into their pocket.
And if that isn't enough, having an infected appendix removed, is easier than getting rid of one.
...And if you thought you were getting raped for earnings, wait till you see what they carve off when you 'cancel your policy'.

 

[joel]

yes.

 

[dademoss]

Diversified portfolio, stocks and bonds. Ask my inlaws about their fabulous annuity and reverse mortgage.

 

[Haertig]

We could live just fine off of our pensions and SS
Or we could live just fine off of our 401K's and IRA's
Or we could live just fine off of our other diversified stocks, bonds and investments
Or we could live just fine by renting/selling our extra real estate holdings

Our plan all along was not to be dependent on one source of income in retirement. Not to spend money on high-end things when we could live just fine on middle-end things. Not to go into debt. And to invest/save wisely. We wouldn't want this to happen, but we could tolerate three of our income streams listed above going totally bankrupt and we'd still be in decent shape.

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

We never thought that at all. Which is why we diversified as we did. Still, everything we have could go up in smoke. If that were to happen to us, I think pretty much everybody's plan would go up in smoke as well. So we have supplies to live for maybe 6 months in that apocalyptic disaster. Which is about as long as we'd want to.

Planning for the absolute worst is my way of thinking. We saved and invested on the assumption that by the time we retired our pensions would be defunct and SS would be gone. That hasn't happened yet, but we're well set if/when it does. We planned on zero inheritances from relatives, but we did receive some. We also paid for schools to learn Day Trading (not cheap!) With the intention to not really get into that too heavily until we were both retired. Learning, practicing, and proving to ourselves that we could turn Day Trading into an income stream on par with our other ones was the goal. We're there knowledge-wise, partially there experience-wise, so that is a back pocket income stream that we plan to develop further in the future. But hopefully not actually need for living expenses. Although it could be that if need be.

 

[sonya123]

we already "retired" from our regular jobs almost 10 years ago , so whatever happens next , I have already done what I wanted to do, so whatever
But we are diversified, have pension, 401k, potential SS in a few years, some IRA in cash, and a homestead that produces food
Plus LOL, 2 kids that we can mooch off if we totally run out of money (just kidding mostly , hope it doesn't come to that) , plus if I live long enough I am going to inherit some stuff from my dad. We are poor but not destitute and homeless

 

[Haertig]

Plus LOL, 2 kids that we can mooch off if we totally run out of money (just kidding mostly , hope it doesn't come to that)

Why not? The kids probably mooched off of you for many decades! I'm kidding too, but families do share with each other.

 

[Supervisor42]

Why not? The kids probably mooched off of you for many decades! I'm kidding too, but families do share with each other.

It is common in the south for offspring to take care of their parents when they get elderly.
When we moved down here, we took over ALL the monthly bills the in-laws had.

 

[angie_nrs]

Don't even get me started about those.
They are actually an insurance policy, not an investment.

Live and learn. I was young and didn't know anything about stuff like that at the time. I thought the guy who was in charge of investments at the hospital would know what he was doing and treat me right. I was in my early 20's, so at least I had time to make changes and invest wisely. Like I said.....live and learn. Trust nobody!

I had to wait 8 years from the last deposit into that account to cash it out. It's been much longer than that now, but the fees have already been paid. Yeah, they get you in the front end b/c they want their money. There are only very rare occasions when an annuity makes any sense. Annuities would be my last recommendation for anyone......except maybe for what Dave mentioned......the reverse mortgage. Just NO.

Oh, and while hubby was young, he got conned into a whole life insurance policy as an 'investment' by his step mother, who made a commission off that policy. He invested in that policy when he was 18 and for several years afterward with the deduction coming right out of his paycheck. It took us a while to realize that it wasn't going into an IRA, which is what he thought when it was set up by her. He still has that policy too.....it just sits there. I pretty much ignore his account and mine. They both have value, but they are reminders of mistakes from the past. We would have done things much differently had we known at the time.

 

[Spikedriver]

Mine is backed by the Railroad Retirement Fund. It's scheduled to run dry about the time I'll probably be dead...

 

[Spikedriver]

@Supervisor42 no need for the sad face. I'll probably die before it runs dry so I'll be good! According to the latest financial review, it's good until 2055 in the worst case scenario. I'd be 83 in that year, and I'd be quite fortunate to survive to that age...