Sunday, October 16, 2016

Smart Cops Know: Cash Out! But Then What?

OK, so they are street smart to know a scam when they see one, and take their money off the table before it is all gone.

“I’ve had 40 to 50 officers in my office this week asking what they should do,” said James Parnell, 52, secretary-treasurer of the Dallas Police Association and 25-year veteran. “They’re very nervous about what is going to happen, they’re fearing a run on the money.”
Turmoil in world stock markets and near record-low bond yields are taking a toll on pensions for cities like Dallas, which count on annual investment returns of more than 7 percent to cover promised benefits. In the year through June, U.S. state and local-government plans posted the smallest gains since 2009, leaving them with almost $2 trillion less than they will eventually need, according to data from the Wilshire Trust Universe Comparison Service and the Federal Reserve.
The squeeze on Dallas’s fund is even more acute because of a decision to divert money from stocks and bonds into Hawaiian villas, Uruguayan timber and undeveloped land in Arizona, among other non-traditional investments. The strategy, put in place under prior managers, backfired. The fund lost 12.6 percent in 2015 and 0.7 percent over the past three years.

But then what?  What do you do with your lump some payout?  Take the tax hit plus penalty?  Sure.  but then what to do with it?   Invest it in
Hawaiian villas, Uruguayan timber and undeveloped land in Arizona

The only smart thing to do is start a business.  It is also the most revolutionary act a person can perform.

Feel free to forward this by email to three of your friends.


Anonymous said...

Ahh yes, the best thing to do is to start a business and create residual income. That would beat any paltry return from a mutual fund.

Anonymous said...


Can you blog a little more on deflation, its signs and effects?

The reason is that I'm moving to another area due to family reasons. I'm going to sell my current home. But I'm just going to rent in the new area until I learn more about the new area where I will be living before buying a home there. I know you stated that it is better to rent now. Now I'm thinking it's better to rent now as well. Like many others, I have thought that renting is just like "throwing money away," but this may not be the reality. I'm intrigued by your thinking and wanted to know if you could write more about this topic.