On first point, not directly relevant but have you given any more thought to The Great Taking? If Webb is correct, pension funds will go under too, regardless of who's managing their investments.
By "go under" I take it you mean "Governments and companies won't pay pensions"- or do you mean private pension plans will be seized by governments?
Government and company pensions are usually "defined benefit" schemes that promise to pay members a specific regular sum - inflation linked. Governments pay for these pensions out of taxes - companies fund these pensions by paying ito a pension fund.
Company pension funds are actuarially vlaued to have a certain percentage "funded" - 80% funded means that the pension nfund assets only cover 80% of the pension promises.
You will see reports that the US federal pensi scheme has a shortfall of tens of trillios of dllars because the government has spent the money that should have funded the federal scheme n other things like defence, pandemics, and assrted "pork".
These government and company pensio schemes cannot meet their liabilities and so - most likely - will simply slash pensions to marthc assets - say a cut of 20-50% in pensios paid.
By far the largest pension funds are those owned by individuals - lik 401k plans. There is an assumption made by investors about a return, but they do oot guarantee a pay-out. If markets frop by 50%, the idividual has a 50% lower pension pot and pension.
As with ay business the key is to match assets and liabilities.
There was a massive switch from "defined benefit" schemes into personal pension plans starting about 40 years ago. for the simple reason that companies did nt want the liability of their defined pension plans - they were the hook for any shortfalls in their pension plans.
Sp, what we are left with is the "degree of broke" and who suffers from the result when the S hits the f.
My bet is that there will be a forced cut of 50% on all health, education ad welfare budhets. They are simply unaffordable. Things are coming to a head as inflation (green energy and net zero costs) force interest rates up - we wither get economic cllpase from debt servicing costs of high iterest rates to match iflation - or half od society defaults debt - or MMT is rolled out ad novody can be bothered workig ay more.
Thanks for taking time to respond. Yes I wasn't very clear. I was thinking more along lines of private pension funds sort of disappearing into thin air, not necessarily being seized by gov't. I'm not sure how my pension fund is managed. My last job was with an international organisation funded by member country gov'ts and I paid into pension fund for approx. 20 years until I retired but I'm not sure how the actual pension fund is managed. I've never looked into it, as dumb as that may sound!
The annual member statement will show the investments of the scheme and who is running them along with the net funded position if a defined benefit scheme and your personal interest and who is running that if a defined cntribution scheme - you will have selected the investment managers if a DC scheme and the cmpany will have aboard of turstees who selec investment mabagers if a SB scheme,
You should be getting a member statement every year, with any important updates in between times.
Sounds like yu are getting paid a pension? I am guessing it is an inflation liked defined benefit received every month.
The annual member statement should have details of the number of members, those contributing. "deferred" members who left before retirement, and active pensioners if it is a defined benefit scheme.
If it's a "defined contribution" scheme, rather than "defined benefit" you may have a pot that is invested somewhere.
(I should have better stated that there are two types of pension schemes - defined benefit AND defined contribution. The individual bears all the risk for "defined contribution" schemes, the government/company bears the liability for "defined benefit" schemes.
Either way, the human resources department (or company secretary) of the international organixzation will have details of how to contact the Trustees as scheme admiistrator. If that organization no longer exists, the pension scheme will have bee transferred to an administrator.
Thanks for that useful info. Peter. Much appreciated. I'll dig out the annual statements. I never read them because they're so boring. My late husband used to look after that stuff. I'm a useless female in that respect!
Wish more states would take similar positive action, instead of simply watching what Texas is doing.
Right on
On first point, not directly relevant but have you given any more thought to The Great Taking? If Webb is correct, pension funds will go under too, regardless of who's managing their investments.
By "go under" I take it you mean "Governments and companies won't pay pensions"- or do you mean private pension plans will be seized by governments?
Government and company pensions are usually "defined benefit" schemes that promise to pay members a specific regular sum - inflation linked. Governments pay for these pensions out of taxes - companies fund these pensions by paying ito a pension fund.
Company pension funds are actuarially vlaued to have a certain percentage "funded" - 80% funded means that the pension nfund assets only cover 80% of the pension promises.
You will see reports that the US federal pensi scheme has a shortfall of tens of trillios of dllars because the government has spent the money that should have funded the federal scheme n other things like defence, pandemics, and assrted "pork".
These government and company pensio schemes cannot meet their liabilities and so - most likely - will simply slash pensions to marthc assets - say a cut of 20-50% in pensios paid.
By far the largest pension funds are those owned by individuals - lik 401k plans. There is an assumption made by investors about a return, but they do oot guarantee a pay-out. If markets frop by 50%, the idividual has a 50% lower pension pot and pension.
As with ay business the key is to match assets and liabilities.
There was a massive switch from "defined benefit" schemes into personal pension plans starting about 40 years ago. for the simple reason that companies did nt want the liability of their defined pension plans - they were the hook for any shortfalls in their pension plans.
Sp, what we are left with is the "degree of broke" and who suffers from the result when the S hits the f.
My bet is that there will be a forced cut of 50% on all health, education ad welfare budhets. They are simply unaffordable. Things are coming to a head as inflation (green energy and net zero costs) force interest rates up - we wither get economic cllpase from debt servicing costs of high iterest rates to match iflation - or half od society defaults debt - or MMT is rolled out ad novody can be bothered workig ay more.
Thanks for taking time to respond. Yes I wasn't very clear. I was thinking more along lines of private pension funds sort of disappearing into thin air, not necessarily being seized by gov't. I'm not sure how my pension fund is managed. My last job was with an international organisation funded by member country gov'ts and I paid into pension fund for approx. 20 years until I retired but I'm not sure how the actual pension fund is managed. I've never looked into it, as dumb as that may sound!
The annual member statement will show the investments of the scheme and who is running them along with the net funded position if a defined benefit scheme and your personal interest and who is running that if a defined cntribution scheme - you will have selected the investment managers if a DC scheme and the cmpany will have aboard of turstees who selec investment mabagers if a SB scheme,
You should be getting a member statement every year, with any important updates in between times.
Sounds like yu are getting paid a pension? I am guessing it is an inflation liked defined benefit received every month.
The annual member statement should have details of the number of members, those contributing. "deferred" members who left before retirement, and active pensioners if it is a defined benefit scheme.
If it's a "defined contribution" scheme, rather than "defined benefit" you may have a pot that is invested somewhere.
(I should have better stated that there are two types of pension schemes - defined benefit AND defined contribution. The individual bears all the risk for "defined contribution" schemes, the government/company bears the liability for "defined benefit" schemes.
Either way, the human resources department (or company secretary) of the international organixzation will have details of how to contact the Trustees as scheme admiistrator. If that organization no longer exists, the pension scheme will have bee transferred to an administrator.
Thanks for that useful info. Peter. Much appreciated. I'll dig out the annual statements. I never read them because they're so boring. My late husband used to look after that stuff. I'm a useless female in that respect!
Not so! Maybe a little lazy! Haha!
I have the same issues with minimizing taxes by using the available 2vehicles" to do so..
Yes! I’m so glad Texas is (at least in part) divesting of Blackrock and similar funds.