Economists predict that American households will have to contribute an average of $1,398 per year to fulfill pension promises, according to a new study…READ MORE
My Take: If the graph below and the information in the linked article are correct, then we’re most likely going to have some serious adjustments in the country sooner than later. Assuming pension problems create some serious problems for State governments, expect a period of time short or extended where heavy amounts of uncertainty exist in the market. Uncertainty makes people nervous and thus brings about sell offs.
Remember to continue to think defensively when investing. I’m not a chicken little type, but it’s important to have a plan for good and bad weather. How will you respond if the market takes a sharp dive? Where will you want to look for shelter? Where will you want to look for oversold opportunities?
Public Pension Trouble
In my opinion, public pension shouldn’t be any different than a 401K. Put it back in the hands of the public and don’t raid taxpayer’s money when things go south.
[...] Getting Any Younger – Healthcare REITs & Dividends Recently I’ve posted about public pension problems in the U.S. One of the main reasons for so many pensions having difficulties managing future payout [...]