asterisk2a + fairy + harm   1

Here's Why All Pension Funds Are Doomed, Doomed, Doomed
Given that both The Economist and The Wall Street Journal have covered the impossibility of pension funds achieving their expected returns, this reality cannot be a surprise to anyone in a leadership role. [...] Here's problem #1 in a nutshell: the average public pension fund still expects to earn an average annual return of 7.69%, year after year, decade after decade.

This is roughly triple the nominal (not adjusted for inflation) yield on a 30-year Treasury bond (about 2.65%). The only way any fund manager can earn 7.7% or more in a low-yield environment is to make extremely high risk bets that consistently pay off. //&! Millennials are first gen to have earned less in their 20's than previous gens. -
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july 2016 by asterisk2a

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