tag:blogger.com,1999:blog-4912713243046142041.post671478598164020851..comments2024-03-28T23:22:41.774-05:00Comments on TYWKIWDBI ("Tai-Wiki-Widbee"): Investors face "return-free risk"Minnesotastanhttp://www.blogger.com/profile/01382888179579245181noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4912713243046142041.post-18749575439801688732012-06-06T23:21:38.193-05:002012-06-06T23:21:38.193-05:00I hate to be Debbie Downer, but anyone living on a...I hate to be Debbie Downer, but anyone living on a pension is currently living in a dream world where they're temporarily insulated from the low returns that pension funds are generating lately. San Jose and San Diego reformed their public employee pension funds yesterday. Numerous entities (like the states of California and Illinois) are going to have pension reform thrust upon them (when the choice comes to shut down prisons and let the prisoners go and stop giving out free anti-psychotic meds or cut off their pensioners, which way do you think they'll go?)<br /><br />The low interest rates currently available are a tax on savers put in place for the immediate benefit of the banks (and the down-the-road salvation of our economic system, so live with it). It also does wonders for the federal deficit since they can finance our $15 trillion national debt for peanuts. But, eventually it will have to change and I expect much higher interest rates, raging inflation, collapsing home prices and the Cubs winning the World Series. This fits in nicely with my guiding investment philosophy which is that the Baby Boom is much too large to support in retirement and hence it will need to be bankrupted to force its members to work until they drop. Eliminating defined benefit pension plans was the first step.Bubhttps://www.blogger.com/profile/07367554651401120819noreply@blogger.com