by Lance Roberts
Real Investment Advice
In 2017, I wrote an article discussing the “Unavoidable Pension Crisis.” At that time, most did not understand the risk. However, two years later, the “Unavoidable Pension Crisis” has arrived.
To understand we are today, we need a quick review.
“Currently, many pension funds, like the one in Houston, are scrambling to marginally lower return rates, issue debt, raise taxes, or increase contribution limits. The hope is to fill the gaping holes of underfunded liabilities in existing plans. Such measures, combined with an ongoing bull market, and increased participant contributions, will hopefully begin a healing process.
Such is not likely to be the case.
This problems are not something born of the last ‘financial crisis,’ but rather the culmination of 20-plus years of financial mismanagement.