There are many reasons why public employee pension funds have grown so fast and one of them is promises. Governors and legislatures made pension promises to public employees. The problem was and still is that these governors and legislatures did not fund the pensions to match their promises. As a solution to the problem, in the 1980s, Wall Street began selling pension boards high risk “credit assets.”
The financially illiterate pension overseers blindly bought up these assets.
To make matters worse, as public pensions failed to meet their overly optimistic return assumptions, Ted Siedle, Co-Author of Who Stole My Pension writes in his latest article in Forbes says, “Now the Department of Labor has paved the way for equity “wolves” to sell the highest cost, highest risk, most secretive investments ever devised by Wall Street to 401(k)s. As private equity is embraced, 401(k) costs will skyrocket, risk will dramatically increase and transparency will plummet.”
Host Robert Kiyosaki and guests Ted Siedle and John MacGregor discuss how agencies charged with protecting investors and retirement plans are taking greater risks and charging greater fees with a newly proposed exemption by the Securities & Exchange Commission.
John MacGregor, Author of The Top 10 Reasons the Rich Go Broke: www.johnmacgregor.net
Ted Siedle, Co-Author Who Stole My Pension: www.siedlelawoffices.com
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