The national unfunded liability of state employment retirement systems is huge. How does mismanagement like this happen? Rather easily, it would seem, when you take into account the apparent moral and intellectual deficit exhibited by those chosen to run the things. Though it is always tempting to pile on and fully itemize the extent of our public officials fund mismanagement, ultimately that’s not going to help the first responder or other state employee with retirement on the horizon and worried sick about what he or she is going to live on.
By the way, an unfunded state employment retirement system is exactly what it sounds like. System managers take the money from workers checks and invest it, for better or worse, in stocks, bonds, mutual funds, etc. So far, so good. Problem was they neglected to pull it out to make the annual payments into the actual fund. So when the time comes nigh to pay the piper, uh oh, no money in the system. That’s a worst case scenario but it could happen.
Far better is it to focus our energies on how to create a nest egg outside the state employment retirement system, one which relies upon individual creativity and ingenuity in selecting investments and not upon a random faceless public official selected to juggle the fund. You could end up a pauper in retirement waiting for someone to fix that.
Through judicious investment in income properties, you can create your own retirement system that you alone control. For free resources on how to become a successful real estate investor no matter your experience or income, call our professional investment counselors at 714-820-4200.
The Heroic Investing Team
Flickr / Michigan Municipal League (MML)