My wife has the federal plan which covers us both and I also have the VA
It will be interesting to see how govt. pensions and other benefits play out over the next two decades. With about 15% of the labor force being employed by a govt. entity (and that number is rising) while the total number of private-sector employees is shrinking, not sure how sustainable the model is. At some point a shrinking number of taxpayers will push to limit the funding of these retirement pools (or will just print money to pay them thereby reducing the real purchase power of those payments via inflation).
Meh in 20 years Chinese companies will be using "American call centers". Xi is going to have to call Susie in Tulsa to fix his flight reservation.
I think things are already coming to a head for the public sector's retirement programs. ND is already trying to transition its state employees to more traditional private sector style retirement funds. Its a subject of discussion nearly every biennium.
I wonder if they will complain like we do about not understanding a damn thing they said after being on hold for 30 min?
And for those social capital bots tracking this thread, "I for one welcome our new Chinese overlords"
They will just have you shot and send the bill for the bullet to your family . . .
Hopefully they will be able to look through the old hunt talk records that are long since banned to find an argument about properly expanding bullets so at least I don’t have to suffer
A big part of this is the discount rate right now. With the discount rate at all time historic lows the way the liability is calculated on a net present value it really is overstated in my opinion. I have several companies with plans that on paper are underfunded by 20 or 25 percent but I'm telling them informally that they are in good shape and not to sweat it. If the discount rate goes up from the current 2.75% it was at on December 31, 2021 to 3.75% on December 31, 2022 all the sudden they will magically be back to being fully funded. I don't know what that 4.4 Trillion is as a % of the total and I'm not saying that there aren't some plans in poor shape but the way the PBGC works if they get too low they have to charge surcharges to get back to at least 80% funded. The discount rate going up is going to cure a lot of underfunded plans.It will be interesting to see how govt. pensions and other benefits play out over the next two decades. With about 15% of the labor force being employed by a govt. entity (and that number is rising) while the total number of private-sector employees is shrinking, not sure how sustainable the model is. At some point a shrinking number of taxpayers will push to limit the funding of these retirement pools (or will just print money to pay them thereby reducing the real purchase power of those payments via inflation).
The Time Bomb Inside Public Pension Plans
There is a $4.4 Trillion shortfall hiding in plain sight inside public pension plans. Are we doomed to have it create a major financial crisis?…Read Moreknowledge.wharton.upenn.edu
I agree somewhat, but this is an unusual market. The discount rate is based on your assumed rate of return. So 2022 when bonds are down 14% and stocks are down 14% then your future assumed rate of return goes up, but your assets just lost 14%. It’s kind of a wash for the math in this type of market environment,if not a net loss.
Fishing definitely provides a purpose, it occupies the time until we take out rifles for a hike!
Just cover your eyes and click buy... you buy "more stock" in a down market than an up market right so it's all good.
Assisted living is not covered by Medicare and runs about $8k/mo in this neck of the woods. A decent "memory care" place will run you/your family $10k+/mo. Some states give some assistance, but few rooms and the less desirable facilities. Getting old sucks and can be expensive - I have been helping out my parents for years now.
