Just look at what's going on in Detroit. Apparently 19,000 retirees account for about ten billion dollars in unfunded liabilities, or about $500,000 per person. If the bankruptcy goes through as planned, it appears that their pensioners will be getting about a dime on the dollar for their pensions. Suffice it to say that not only Detroit, but also its suburbs and Florida, will be paying a price for this one.
Along the same lines, the actual national debt when calculated per GAAP standards is somewhere between fifty trillion dollars when Obamacare's ludicrous payment schedules for Medicare are used to about twice that when realistic payments would be made to doctors. Yes, almost all of the debt is from entitlement programs.
Lessee....one hundred trillion dollars divided by the hundred million pensioners we'll have in a couple of decades actually makes Detroit's financial woes look pretty benign in comparison. So if you're under 60, you just might do well to prepare for the upcoming collapse of Socialist Insecurity and Mediscare. Plan on less than a dime per dollar you've "invested."
And yes, this indicates why you want to work for a company with "defined contribution" retirement plans like a 401k, or invest in your own IRAs, and not trust pension managers to contribute enough to fund your pensions.
Quote of the day. - On my craft: psychiatry, and from Paul Mullen. One of my fears for psychiatry is that we are allowing clinical practice to degenerate into a process which ...
6 hours ago