It's About Liberty: A Conservative Forum
Topics => Economy => Topic started by: Pandora on May 10, 2013, 08:39:16 AM
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A whole lot of the big union pension plans are in trouble. (http://www.thedailybeast.com/articles/2013/05/09/how-the-irs-wrecked-your-pension.html)
This is usually cited as an example of The Trouble With Unions, or alternatively, The Scandalous Underregulation of the Private Sector. As I dug into the details though, I found out something that surprised me: this wasn't just a story about union mismanagement. And it wasn't a story about deregulation, either. Oh, to be sure, the funds could have managed things better (more about that in a little while). But the reason that they're in such deep trouble now is neither bad management, nor inadequate regulation. In fact, the opposite is true: managers wanted to do a better job, and the government actively stopped them. Meet the true culprit behind the crisis in union pension plans: the friendly folks at the IRS.
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Well, any system set up to pay more and more beneficiaries with fewer and fewer workers is doomed to fail.
And that example only works for the few that were lucky/or just plain skilled enough to time everything just right. If everybody would have sold stock for bonds, stocks would have crashed, bonds would have soared, rates would have crashed...and long before everybody could do that "right" thing.
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Damned if you do, damned if you don't...the only smart play is not to play their game at all!
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Damned if you do, damned if you don't...the only smart play is not to play their game at all!
How do you do that? We're a captive participant when it comes to SS. The only measure of control that I can think of is expecting to never see a dime from them (regardless of how much I am "entitled to" and doing my best to plan accordingly.
Likewise with the pension(s). If they vaporize or the F'ing government steals them I have some money stashed. When it's gone so am i...
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Damned if you do, damned if you don't...the only smart play is not to play their game at all!
How do you do that? We're a captive participant when it comes to SS. The only measure of control that I can think of is expecting to never see a dime from them (regardless of how much I am "entitled to" and doing my best to plan accordingly.
Likewise with the pension(s). If they vaporize or the F'ing government steals them I have some money stashed. When it's gone so am i...
!!