This blog is maintained for the sole purpose of allowing the people of Peru and those interested in the cities of the Illinois Valley to express their views.
“It doesn’t take a majority to win, just a tireless minority that will keep starting brush fires in the mind and hearts of their fellow men.” Samuel Adams
Monday, August 29, 2011
Pensions in Education Funded by You
13 comments:
Anonymous
said...
Lois, I really enjoy reading your blog and agree with most things. This is one that you don't know much about. Most of these educators put in 8% of every paycheck into their pensions. Yes, the state is suppose to match, but they have taken a pension holiday (not paid) for YEARS!!! The majority of that money that these educators are receiving are their own money they have put in for 35 years! Ask a knowledgeable person to calculate how much money a person would have if you invested 8% of your salary for 35 years at an 8% interest rate. You would be amazed. If only every person would take 8% of their salary every paycheck and invest it, our society would be much better off. Make sure you know the facts on this information. Also, many of these people have a high school diploma, Associates degree, Bachelors, Masters, Masters +60 hours past, and Doctorate. I encourage all of you to take 10 years of your life, go knee deep in debt, and get your doctorate degree. I think these educators deserve this amount to educate our future.
Anon 2:08 Where are you getting a 8% average rate of interest for the last 35 years? If you average the last 35 years you will get a 4% rate of interest. Now where did the other half of the principle come from?
6:58: Another person who has no knowledge but is trying to act like it. Where is your source? There are hundreds of sites out there with info, here is just one.
"What has been the historic return of the stock market?
Based on a study from Mellon and Ibbotson Associates, the stock market has historically generated the following average returns:
Last 78 years: 11%
Last 50 years: 13%
Last 20 years: 20%"
End of source:
Now, I used 8% (which is very conservative) due to the drop of the stock market in the last few years. It has recovered but I thought I would use a low number. Please show me your reliable source that shows 4%.
Anon 12:17 You with your inferiority attitude which makes you so rudely ready to defend your small bit of financial knowledge. The stock market is only one of many forms of investing and some of these forms have paid higher than others. From your comments it appears that you are using the stock market as your only source as you stated "end of source". If you would personally visit a knowledgeable banker you would be gifted to learn that the average rate of interest over the last 78 years is 4%. My reliable source is Presidents of Banks which I have invested in. I do not need to act like I have knowledge since I know where to obtain it. My advise to you is that liars figure and figures lie. I would be very careful in believing hundreds of sites out there with info which you know of rather than relying upon several people who I can look at eye to eye. I also invest in the stock market, property and private corporations plus several other forms of investing. All of these different options have had their highs and lows over the years. Presently I have a real nice bridge out in Brooklyn which I'd like to sell you. I'll give you and only you a special deal in which you'll make way over 20% return on investment in the next 20 years. As a special incentive I'll give you two tickets to this years World Series with the Brooklyn Dodgers playing the New York Giants in January. All knowledgeable one I pray you are not a finance teacher or associated with finance as a profession.
Anon 10:25: So where is your reliable source? I could say I talked to the President of the United States but am I telling the truth? If this banker is returning 4% over the last 78 years, I would run as far away from that bank as possible. For years you could return that or more on CD's. I will still wait for a reliable documented source. Until then, try this site: http://www.moneychimp.com/features/market_cagr.htm
Type in for the last 78 years and you will get 12.6% return. Give me all your money and I will give you a 4% return as you state and I will make a lot of money. I sure hope you don't teach finance or a finance professional. You are a typical person who talks to one person and believes that is truth. Please give me a documented, factual source that shows your information and then I will say you are right. Talking to someone or at least saying you talked to someone no matter what their title is does not make it valid or truthful. Look forward to your valid, documented source.
Anon 2:08 (12:17) (7:00) Quit hiding behind all of those degrees and join the real world, but on your way don't buy any bus tickets to Wall Street. They wait in line for people like you. In full agreement with 10:25 and 8:45.
If someone wants to discuss the rate of return on a particular Pension Plan like the Teachers Retirement System please don’t waste your time debating returns from any investment vehicle “Except the actual return of the TRS pension plan”.
Below you will find a link to a article that is rather complicated but does explain the Trustees of the TRS pension have made some terrible investment choices.
Paragraph below is at the end of the article: the link is also below to the full article. Alas, at this point it is too late: for TRS, and likely for many, many other comparable pension funds, which had hoped that the Fed would by now inflate the economy, and fix their massively incorrect investment exposure, the jig may be up. As liquidations have already commenced, the fund is beyond the point where it can "extend and pretend", and absent the market staging a dramatic rally, government bonds plunging, and risk spreads on CDS collapsing, the fund is likely doomed to a slow at first, then ever faster death. Then one day, Goldman's risk officers will call the TRS back office, and advise them that due to its "suddenly riskier profile" established in no small part courtesy of Goldman's investment allocation advice, the collateral requirements have gone up by 50%. The next step is either Maiden Lane 4... or not. For the sake of the 355,000 full-time, part-time and substitute public school teachers and administrators working outside the city of Chicago, we hope that the TRS has now been inducted into the hall of the Too Big To Fail, as otherwise roughly $34 billion in (underfunded) pensions are about to disappear. http://www.npr.org/templates/story/story.php?storyId=125076655
Lois I read your list of pensions in education and must say I was astonished at the salaries and pensions being paid. Several years ago the factory I worked at as did most of the other local residents closed and my pension is just a little better than 1% of nothing.My Social Security has been frozen for two years and I am about to have to move out of my home because I no longer can afford it. Now I find that my tax dollar is helping pay 8% of individuals who are collecting over $100,000/year in pension funds. Maybe they could contribute some of this back to some of the elderly as I understand they can retire at a very young age. When I was of age to go to college none of us could afford to go so one of our goals was to help someone else that needed it. In Harrys' term as president he introduced the GI Bill which most of the male teachers in this list can't collect since you had to serve your country and Vietnam scared them into teaching. Quite a few fellows I know taught until they were too old or got married and than they found they were more interested in another vocation. The 60's and early 70's had a harsh way of exposing the boys who didn't have any stones. Most of my age group attended the School of Hard Knocks I guess this is the reason we are survivors not cry babies begging for what we think we are entitled too.
12:17 What did you say? Would you please come back and explain? Appears that you know what you are commenting about, but too deep for most of us. Probably send 12:17 into immediate shock beyond recovery.
13 comments:
Lois, I really enjoy reading your blog and agree with most things. This is one that you don't know much about. Most of these educators put in 8% of every paycheck into their pensions. Yes, the state is suppose to match, but they have taken a pension holiday (not paid) for YEARS!!! The majority of that money that these educators are receiving are their own money they have put in for 35 years! Ask a knowledgeable person to calculate how much money a person would have if you invested 8% of your salary for 35 years at an 8% interest rate. You would be amazed. If only every person would take 8% of their salary every paycheck and invest it, our society would be much better off. Make sure you know the facts on this information. Also, many of these people have a high school diploma, Associates degree, Bachelors, Masters, Masters +60 hours past, and Doctorate. I encourage all of you to take 10 years of your life, go knee deep in debt, and get your doctorate degree. I think these educators deserve this amount to educate our future.
I can only complain if those same above individuals take a elected position and the retirement perks with it.
Anon 2:08 Where are you getting a 8% average rate of interest for the last 35 years? If you average the last 35 years you will get a 4% rate of interest. Now where did the other half of the principle come from?
3:21
Why can you complain? Can someone not work after retirement? Your statement makes no sense. Just sounds like jealousy.
6:58:
Another person who has no knowledge but is trying to act like it. Where is your source? There are hundreds of sites out there with info, here is just one.
"What has been the historic return of the stock market?
Based on a study from Mellon and Ibbotson Associates, the stock market has historically generated the following average returns:
Last 78 years: 11%
Last 50 years: 13%
Last 20 years: 20%"
End of source:
Now, I used 8% (which is very conservative) due to the drop of the stock market in the last few years. It has recovered but I thought I would use a low number. Please show me your reliable source that shows 4%.
Anon 12:17 You with your inferiority attitude which makes you so rudely ready to defend your small bit of financial knowledge. The stock market is only one of many forms of investing and some of these forms have paid higher than others. From your comments it appears that you are using the stock market as your only source as you stated "end of source". If you would personally visit a knowledgeable banker you would be gifted to learn that the average rate of interest over the last 78 years is 4%. My reliable source is Presidents of Banks which I have invested in. I do not need to act like I have knowledge since I know where to obtain it. My advise to you is that liars figure and figures lie. I would be very careful in believing hundreds of sites out there with info which you know of rather than relying upon several people who I can look at eye to eye. I also invest in the stock market, property and private corporations plus several other forms of investing. All of these different options have had their highs and lows over the years. Presently I have a real nice bridge out in Brooklyn which I'd like to sell you. I'll give you and only you a special deal in which you'll make way over 20% return on investment in the next 20 years. As a special incentive I'll give you two tickets to this years World Series with the Brooklyn Dodgers playing the New York Giants in January. All knowledgeable one I pray you are not a finance teacher or associated with finance as a profession.
Anon 10:25: So where is your reliable source? I could say I talked to the President of the United States but am I telling the truth? If this banker is returning 4% over the last 78 years, I would run as far away from that bank as possible. For years you could return that or more on CD's. I will still wait for a reliable documented source. Until then, try this site:
http://www.moneychimp.com/features/market_cagr.htm
Type in for the last 78 years and you will get 12.6% return. Give me all your money and I will give you a 4% return as you state and I will make a lot of money. I sure hope you don't teach finance or a finance professional. You are a typical person who talks to one person and believes that is truth. Please give me a documented, factual source that shows your information and then I will say you are right. Talking to someone or at least saying you talked to someone no matter what their title is does not make it valid or truthful. Look forward to your valid, documented source.
Anon 7:00 The only thing that you have proved is that you are fully capable of plagiarizing 10:25.
Anon 2:08 (12:17) (7:00) Quit hiding behind all of those degrees and join the real world, but on your way don't buy any bus tickets to Wall Street. They wait in line for people like you.
In full agreement with 10:25 and 8:45.
If someone wants to discuss the rate of return on a particular Pension Plan like the Teachers Retirement System please don’t waste your time debating returns from any investment vehicle
“Except the actual return of the TRS pension plan”.
Below you will find a link to a article that is rather complicated but does explain the Trustees of the TRS pension have made some terrible investment choices.
Paragraph below is at the end of the article: the link is also below to the full article.
Alas, at this point it is too late: for TRS, and likely for many, many other comparable pension funds, which had hoped that the Fed would by now inflate the economy, and fix their massively incorrect investment exposure, the jig may be up. As liquidations have already commenced, the fund is beyond the point where it can "extend and pretend", and absent the market staging a dramatic rally, government bonds plunging, and risk spreads on CDS collapsing, the fund is likely doomed to a slow at first, then ever faster death. Then one day, Goldman's risk officers will call the TRS back office, and advise them that due to its "suddenly riskier profile" established in no small part courtesy of Goldman's investment allocation advice, the collateral requirements have gone up by 50%. The next step is either Maiden Lane 4... or not. For the sake of the 355,000 full-time, part-time and substitute public school teachers and administrators working outside the city of Chicago, we hope that the TRS has now been inducted into the hall of the Too Big To Fail, as otherwise roughly $34 billion in (underfunded) pensions are about to disappear.
http://www.npr.org/templates/story/story.php?storyId=125076655
Lois I read your list of pensions in education and must say I was astonished at the salaries and pensions being paid. Several years ago the factory I worked at as did most of the other local residents closed and my pension is just a little better than 1% of nothing.My Social Security has been frozen for two years and I am about to have to move out of my home because I no longer can afford it. Now I find that my tax dollar is helping pay 8% of individuals who are collecting over $100,000/year in pension funds. Maybe they could contribute some of this back to some of the elderly as I understand they can retire at a very young age. When I was of age to go to college none of us could afford to go so one of our goals was to help someone else that needed it. In Harrys' term as president he introduced the GI Bill which most of the male teachers in this list can't collect since you had to serve your country and Vietnam scared them into teaching. Quite a few fellows I know taught until they were too old or got married and than they found they were more interested in another vocation. The 60's and early 70's had a harsh way of exposing the boys who didn't have any stones. Most of my age group attended the School of Hard Knocks I guess this is the reason we are survivors not cry babies begging for what we think we are entitled too.
12:17 What did you say? Would you please come back and explain? Appears that you know what you are commenting about, but too deep for most of us.
Probably send 12:17 into immediate shock beyond recovery.
Sorry,12:17 P.M.,September 04,2011 I meant 12:17 P.M., September 3,2011.
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