Are you going to purchase at 25% price hike

[GypsmJim]

That is not true for any active retirement plan I've heard of - pension funds take contributions in, pay benefits and admin costs out, and invest the difference.

Here's a common example. NM's public employee retirement association only gets contributions and investment income - not any general government funds. Last year they paid out $1.5 billion in benefits and took in $2.28 in contributions ($950 million contributions, $1.3 bn in investment income). They held $17 billion in investments 6/30/24, and made over 8% on the investments, which was far better than the 4.2% they earned in 2023.

If there was no additional income of any kind, they could only pay 11 years benefits to existing beneficiaries. Most pension funds' investment income exceeds that of employer/employee contributions. Annual Comprehensive Financial Report

"What Is the Pension Benefit Guaranty Corporation (PBGC)?
Pension plans provide workers with guaranteed income during retirement. While not many private companies offer pension plans anymore, government entities do. Employers that offer pension plans are responsible for funding and managing them. If they make a mistake, it could affect the income for the retirees involved.

The Pension Benefit Guaranty Corporation guaranteed the pension incomes for 34 million workers in 25,000 pension plans in 2020. If the companies that offered these benefits can't provide them, the PBGC steps in and provides monthly benefits up to a statutory limit. The PBGC insures single-employer plans and multi-employer plans, using separate reserve funds for each type."

 

[biku324]

Sure, if you think 66% of your current benefit is just fine.

Having a partial backstop for defunct or poorly managed pension funds is not a full benefit guarantee. You do understand that is a Federal program every bit as subject to cuts as any other?

 

[GypsmJim]

Pales in comparison to the outright known lies of the previous four years. Too many to mention without getting dinged in an already political thread.

After living thru the 2020-2024 years I am convinced that we Americans can weather any storm.

No matter how bad it was and how bad it could get, consider how bad it is for the Jewish and Ukrainian people.

Instead of complaining about what's happening in the good ole' USA, we should pray for Israel and the Ukraine. They need help more than we do.

 

[GypsmJim]

"Sure, if you think 66% of your current benefit is just fine.

Having a partial backstop for defunct or poorly managed pension funds is not a full benefit guarantee. You do understand that is a Federal program every bit as subject to cuts as any other?"


I'm sure you know more than I do. Has the PBGC ever been invoked? If it ever is needed wouldn't it be a catastrophic occasion? If that is the case, 66% might be better than nothing. If the S truly HTF, maybe our worries will be much greater.

In the meantime I'll pray for us all.

 

[326MOD10]

Pension funds are required to keep enough money in the till to fund everyone in the fund. As we old guys die off the demand will continue to fall. Of course, if the SHTF and all pensions go belly up, that may be the least of our worries.

I propose that our gooberment pass a law that requires that when a product is advertised online for sale, they are required to post the country of origin. Personally, if I see a chinacrap item for 5 bucks and that's all there is, I guess I'll be stuck with it. But if a competitor shows a similar product "Made in America" for 10 bucks, I'll be happy to pay double (or in this case 5 bucks more).

It's all up to us. If we have a choice and decide to go cheaper, then just shut up and take the rest like a man.

Take a look at your phone, your TV and even the very computer you are posting here on and let me know where it is made.

And as far as the Pension Benefit Guaranty Corporation goes it is for private company pensions and not government pensions.

Doesn't apply to the comment I posted as I was speaking about government funded pension.

And where/how do you think the PBGC masses its funds to be able to bail out the failed private pensions? My guess is the same markets that are losing so much.

 

[biku324]

"Sure, if you think 66% of your current benefit is just fine.

Having a partial backstop for defunct or poorly managed pension funds is not a full benefit guarantee. You do understand that is a Federal program every bit as subject to cuts as any other?"


I'm sure you know more than I do. Has the PBGC ever been invoked? If it ever is needed wouldn't it be a catastrophic occasion? If that is the case, 66% might be better than nothing. If the S truly HTF, maybe our worries will be much greater.

In the meantime I'll pray for us all.

I assume you actually want to know....so PGBC is for private employee pensions, not for any gov retirees. There are about a million folks on it now whose pension funds went under. Those who retired at 65 with 30 years of contributions from a single plan MAY get up to 100% of their original plan benefit, but much less if they retired before 65, want benefits for a spouse, etc. Two friends from church worked for a now-defunct airline; one was a pilot and had to retire at 62 with 28 contribution years - he got 66% of what his pension had been by not including his wife as a lifetime beneficiary. The other was in aircraft service for 23 years - he and his wife get $1,000 a month.

And this Federal backstop is having problems. They're supposed to be self supporting, but last year needed $75.9 billion in Federal funds as a bailout.

 

[ladder13]

After living thru the 2020-2024 years I am convinced that we Americans can weather any storm.

No matter how bad it was and how bad it could get, consider how bad it is for the Jewish and Ukrainian people.

Instead of complaining about what's happening in the good ole' USA, we should pray for Israel and the Ukraine. They need help more than we do.

As the Good News says "who can add one hour to his life by worrying"?
I stopped 40 years ago.

 

[A10]

I have seen the impact in the Markets. I notice that you are a law enforcement officer, so either retired or active, but either way do you understand where your pension fund makes money?

It isn't just from what you and your employer contribute. They invest that money and use the dividends to be able to mail out those checks every month. The contributions don't come close to covering the cost.

Since January 20th the Markets have lost 9.6 TRILLION dollars. Most of that in the last few days.

That doesn't include the money that individuals have lost and what is the time frame to earn that back into the accounts?

And if you are retired and this new tax is extra money we will need to pay, and at this point it appears it is, for how long will that last and what impact will it have on discretionary income?

Oh there is an impact even if tomorrow everything turns rosy again.

I get the idea of bringing manufacturing back to America. But do you really believe that the clothing and cheap goods we buy from places like Vietnam, China, and the heavily tariff taxed country in Africa (Sorry I can't recall the name) that makes Levi jeans, will once again be produced in America at a cost that you can afford?

We need to be looking forward and not rearward.

Do you understand that the markets issues are based on pure speculation? Which tariffs have actually gone into effect? Which goods have been impacted? What prices have increased?

As I said, everyone is panicking, which is impacting the markets. No one knows what the real outcomes are. The markets will recover. Money in stocks and bonds is all imaginary until the stocks and bonds are cashed in.

 

[UncleEd]

I have faith in my US government. And if at this time it seems to be destroying the stock market, it must be a good thing. No possibility exists that my government could or is making
the wrong decision. Economists, the majority of whom oppose the new tariff policy, are ninnies. The man at the top of my government knows best and it would be well for all naysayers to remain silent.

 

[greenwellg]

Lets see. The crash of 2008 was from 14k down to 6.5k.
46% of the pre crash value.
Apply that to today and it would be 21k.
That happened 17 years ago.
Market was 18k in 2020, 28k in 2022.
That's the risk you are taking for the return.
With 25% inflation since 2020 that takes 45k down to 33.5, 38 down to 28k so the gains of 2022 to 2025 are wiped out.
When Warren Buffet tells you to get out, that advice costs you nothing.
I'm out and will stay out. Buying the dip means you know when the dip will end. The 1929 crash was not 90% overnight. It was prolonged and it took WW2 to end that decline.
If we do what we must to keep our currency anything close to it's current real value, it means a lot less speculative capital competing for market shares.
Maybe Buffet will tell us when to buy shares. It's much too late for me at 74. I went a different path.
My choice was to take advantage of tax free gains by building two homes. Cost $320k , current value over $800k.
Now I make sure that we have everything insured, but even that does not guarantee security.
The current market is quicksand.

 

[Alton]

A few weeks ago when tariffs started being mentioned in the news copper went from around $4.50 a pound to $5.20 a pound. After the tariffs kicked in copper was down on Friday to $4.38 a pound. Seems that investors went stupid and over bought, now they are losing big time.

 

[bushmaster1313]

The wife and I are retired and hope to not need to buy a house, a car or furnishings. But I do worry about young people struggling to make ends meet.

At least they don't need to worry about being drafted and sent to Vietnam.

(Full disclosure. My number was low but the draft ended before I graduated high school)

 

[ladder13]

A few weeks ago when tariffs started being mentioned in the news copper went from around $4.50 a pound to $5.20 a pound. After the tariffs kicked in copper was down on Friday to $4.38 a pound. Seems that investors went stupid and over bought, now they are losing big time.

Some people have a habit of buying high and selling low.

 

[glenwolde]

Lots of good preferred stocks and closed end funds yielding tax-advantaged returns in the 7%-9% range. Beats 4% CDs with little more risk.

I'd say a lot more risk. But I have some already. Preferrds tend to have a lot of duration for me and the closed ends that look good on the surface are leveraged or have ROC in their "yield". But there's some I'd buy. I have one that I sold 60% of that I'd like to buy back sometime.

I haven't closed out my short hedges yet but I'm waiting on the open to get at least some of it closed out.

 

[glenwolde]

Belief resists information.

"It ain't what you don't know that gets you into trouble. It's what you know for sure that just isn't so." - Mark Twain

 

[biku324]

I have faith in my US government. And if at this time it seems to be destroying the stock market, it must be a good thing. No possibility exists that my government could or is making
the wrong decision. Economists, the majority of whom oppose the new tariff policy, are ninnies. The man at the top of my government knows best and it would be well for all naysayers to remain silent.

Belief resists information.

 

[326MOD10]

If you think this is about free trade you should have been tuned in to Squawk Box this morning as they spoke to Peter Navarro.

They asked him if Vietnam is offering zero tariffs is that enough. He said it was not and they needed to pay more.

He went on to say using the extra tariff income will result in being able to provide a tax break for people.

This goes back to the previous post about leveling a tax to provide a tax break doesn't make good sense.

I am about done here as I agree that, just like a cult the true believer will drink the Kool Aid. If down the road we stick to this policy and I am employed at the factory making jeans at $20 an hour, I will admit I am wrong.

 

[ladder13]

Market mavens. EU wants to talk.

 

[Tom S.]

Everyone on this forum has the ability to listen/read/watch the news and draw their own conclusions as to what is happening in the world. Unfortunately, they do not seem to have the ability to make posts without political comments or innuendos, so this thread is closed.