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Originally Posted by humandraydel
While this is true in theory, it is not necessarily true in reality. Companies and even governments (usually only municipalities) can go bankrupt - or at least get in a financial mess to where they can't afford their pension liabilities - especially if the pension fund underperforms considerably. It is unlikely, but certainly not impossible.
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I just saw an interview with Dick Morris last week and he was explaining what was going on with oil prices- and that he is confident that oil is the next bubble. He said the real problem will emerge that a lot of pension money was held in the oil funds by the big firms that are driving up the price without being the consumer/recipient of the commodity. End result: some pensions will crash and burn when the oil bubble bursts. I don't know how true it is, but if it does happen, there will be a bunch of people questioning why the gov't deregulated commodities in '99 and allowed this abuse to occur.
My DH does not have a retirement or pension. He does have a 401K to which he contributes.