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-   -   Very small networth when ER ? (https://www.early-retirement.org/forums/f28/very-small-networth-when-er-84557.html)

Just_Steve 12-30-2016 04:51 PM

Quote:

Originally Posted by travelover (Post 1818203)
I've got a private pension, but I didn't steal it from the stockholders, the consumers or the tax payers. It was part of my deferred compensation, as agreed to by all involved. I pay income tax on the pension as well as any 401(k) or IRA withdrawals, so no money goes untaxed, though it may be at a lower rate due to the deferral.

Sounds 100% like my public pension.

travelover 12-30-2016 04:58 PM

Quote:

Originally Posted by Just_Steve (Post 1818261)
Sounds 100% like my public pension.

In my case, the pension is funded, so it does not depend on future contributions to remain solvent. That is the rub with many pensions, especially SS.

Just_Steve 12-30-2016 05:22 PM

Quote:

Originally Posted by travelover (Post 1818265)
In my case, the pension is funded, so it does not depend on future contributions to remain solvent. That is the rub with many pensions, especially SS.

Last time I checked my plan was funded around 90%, I can sleep well at night.

Onward 12-30-2016 05:28 PM

A good friend of mine is married to a professor at the U of California. The stories of what the tenured staff does, in the few years preceding retirement, to dramatically jack up their pensions would make you want to vomit.

beowulf 12-30-2016 06:32 PM

Quote:

Originally Posted by travelover (Post 1818203)
I've got a private pension, but I didn't steal it from the stockholders, the consumers or the tax payers. It was part of my deferred compensation, as agreed to by all involved. I pay income tax on the pension as well as any 401(k) or IRA withdrawals, so no money goes untaxed, though it may be at a lower rate due to the deferral.

As said by another, that's exactly what a military, federal employee and many public sector employee pension is. Instead of receiving salaries that would be paid to those in the private sector for similar education, experience and responsibilities, we served the public at a lower salary with the implicit promise that we would receive such and such pension. This is all moot now. The military pension system has undergone changes devaluing its worth and more changes are in the offing. Yet there haven't been large increases in pay and benefits to make up for that. The former gold standard federal pension stopped accepting new employees in 1983. Since then any new employees have been under a much reduced system. And, while there have been small changes to that, even larger ones are coming. Yet again, no increases, other than inflation (not much of that) have offset the reductions in pensions. And all pensions are federally taxed in full.

travelover 12-30-2016 07:23 PM

Quote:

Originally Posted by Just_Steve (Post 1818276)
Last time I checked my plan was funded around 90%, I can sleep well at night.

Right. The grousing here was about public pensions that are not properly funded, Illinois being a prime example.

FUEGO 12-30-2016 07:30 PM

Quote:

Originally Posted by Danmar (Post 1818034)
Agree. Have done this in the past and plan to do it next Sept on the QM11. Haven't cruised for a few years as got tired of it. But cross-ocean cruises are different. No crappy tours to mundane, tourist traps with aunt Matilda bringing up the rear. Really like doing long workouts, lectures, cooking classes, reading on the balcony, happy hours, etc. The fact that they are often quite reasonably priced is a bonus.

You know you can stay on the ship while you're docked in the tourist traps, right? ;D Ship's half empty and it's wonderful.

We did this on both the cruises we went on in December when we visited Nassau, Bahamas. We've been there half a dozen times (EVERY cruise from the east coast seems to dock there) and seen and done everything and wanted a lazy day of relaxation. And got exactly that. And Nassau is probably the worst port I've visited in terms of aggressive touts for taxis, guided tours, etc (Cozumel possibly a close second). No thanks to running the gauntlet just to bum about the touristy area around the port.

I'm jealous of your QM2 voyage across the Atlantic. We'll be stuck in economy in a thin metal tube for 7-8 hours next summer (with a 5 year old) instead of traveling in style. Next time perhaps.

Chuckanut 12-30-2016 08:21 PM

Quote:

Originally Posted by travelover (Post 1818323)
Right. The grousing here was about public pensions that are not properly funded, Illinois being a prime example.

True.

Then add to that many of the folks in that system are not covered by SS (Like Detroit). I would not want to be in their shoes.

It does make me wonder what happened to all that money the employer and employees did NOT pay into SS. Any ideas?

beowulf 12-30-2016 10:48 PM

Presumably the employees paid into their public pensions and the employer funded it. Or not. If it didn't go in, both kept their share.

travelover 12-31-2016 06:40 AM

Quote:

Originally Posted by beowulf (Post 1818386)
Presumably the employees paid into their public pensions and the employer funded it. Or not. If it didn't go in, both kept their share.

I think it is a combination of inadequate funding from the employer / employee, fictitious assumptions about future growth of the pot, plus really crappy, nearly criminal investments by the retirement fund, in some cases.


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