Getting it Right - Welcome

The goal of this blog is to publish my thoughts on a variety of economic and political topics in the hopes that people who find them educational or beneficial will utilize them and/or forward to others who might find them interesting and/or worthwhile to promote to others, possibly including politicians who can push some of these ideas to fruition. The topics in my blog are meant to be of value on a long term basis, not a daily diary or political issue of the day log. If the information posted is useful to you, by all means utilize it and/or forward it as you see fit. If not useful, then merely ignore it. There are no universally agreed upon truisms and too little tolerance between some of those with opposing viewpoints to successfully convince the people with hardened opinions to move away from them. I am an analytical type person who will try to be as factual as I am able.

I disdain the current popularity of name calling and condemnation of viewpoints with no factual alternatives or logical solutions given that I see so often. If you don't have a solution based on fact and logic, then opt out of the discussion because you have nothing to contribute. My background is a degree in Economics from the University of Michigan and 39 years working in middle management jobs for a major retailer. My opinions are forged on the personal experence of life, family, friends, and work as well as triumphs and mistakes that I have made and hopefully learned from. My hope is that this blog helps you.

My first topic will be about personal finance. I chose that one first because most of us work long and hard just to survive but not all of us realize our dreams of becoming financially independent from the labors of our work. Much of our political votes/thinking also focus on the economy and in particular how well we are personally doing financially.

It is relatively simple, without sacrificing the enjoyment of living for 'today' and even at moderate incomes, to retire as a millionaire or multi-millionaire, if you focus on that goal consistently from a young age. It is also simple to ensure that your child or grandchild retires rich. It merely requires a one time gift of just $2,000 invested wisely and the passage of time. Please read my first post on this blog to learn more.


An index/schedule of past and future posts and their dates will always be updated so that it becomes the first post that you see below. If the date of a post that you wish to read is preceded by the word "Posted", then find it below or click on the title in the Blog archive to review.

Blog Archive

Sunday, December 13, 2020

Outlaw All Government Pensions

 Obviously, governments cannot be trusted to manage pension plans, especially when government employees can outrageously inflate their own pension through overtime pay in the last year before retirement (many government pensions are based on just the income earned in the last year of employment including overtime, instead of the average of the best 5 consecutive years out of the last 10 years as corporations who still offer pensions normally do). Time to outlaw government pensions and put that money invested to support pensions in "special"  401K plans, using a percentage (6 to 10%) of worker's salary invested each paycheck, paid by the state and also the Federal government, not the government employee. To that, the government employee can also add to his own "personal" 401K each paycheck, held separately from the "special" 401K described previously . At retirement, the special 401K becomes the "pension" with the state invested part taken out at 4% a year, divided into 12 monthly payments (which should make this pension self sustaining with inflationary increases occurring over time as investments should grow more than 4% a year long term based on stock market history). The employee part can be utilized however the state retired employee wants. In addition, there would also be Social Security payments each month as the worker must contribute to it while working as non-government employees do. No exemptions out of Social Security  for these workers. Problem solved. No more ridiculously generous early retirement pensions and no more 100% pensions based on overtime pay in the last year when the intention was for a 50% pension. Any needed reductions in pensions for current retirees would come out of the overtime cheaters first who inflated their pensions their last year of work to get them back to a 50% pension as originally planned by the state.

https://www.usatoday.com/story/money/2020/12/11/every-states-pension-crisis-ranked/115099952/


No comments: