Heroic Investing
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State Retirement Plans Based in Failing Assets

state retirement plansEmployees looking forward to footloose and carefree golden years, basking in the incredible bounty afforded by their state retirement plans should pay a visit to a little place we like to call reality. States like California and New York are teetering on the brink of financial insolvency. When the powers that be get around to downgrading their bond rating to ZZZ El Crappo status, where will the money come from to make monthly payments to state employee retirees? They’re not going to be able to borrow it.

And back in July the California Governator issued a mandate that 200,000 state workers immediately have their pay status downgraded to the Federal minimum wage of $7.25 hourly as the state tries to figure a way out of the budget mess. If they’re squirreling with the current workers livelihood, do you think they’ll worry too much about tinkering with yours when you retire? If it’s there at all.

But even above and beyond the political effect, those with state retirement plans should be equally concerned about most plans addiction to the stock market. And, no, mutual funds won’t swoop in to save the day. The stock market is a pusher of second class assets which simply don’t carry the financial wealth building clout they once did and has largely run its course as anything other than a speculative free-for-all.

What about people whose future is pegged on the success of state retirement plans? Heroic investing suggests you take a serious look at an investment class that is going like gangbusters – income property.

The Heroic Investing Team


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