The Stacking Benjamins Show Pension Perils: Lessons from the Dallas Fund Fiasco (SB1576)
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Sep 18, 2024 Dive into the chaotic world of the Dallas Police and Fire Pension System's poor investment choices, revealing a startling 2% return over the last decade. Learn why straightforward strategies beat complicated investments. Find out how your trash can might indicate your financial health in a humorous TikTok moment. The hosts also tackle unusual 401k and Roth IRA matching plans, before sharing their most disappointing concert experiences, blending finance with nostalgia in an entertaining discussion.
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Pension Plan Growth and Contributions
- Pension fund managers base calculations on assumed growth rates, similar to individual financial plans.
- Underperforming these rates necessitates higher contributions to catch up, a challenge amplified over time.
Dallas Pension Fund's Unconventional Investments
- The Dallas Police and Fire Pension System invested in unusual assets like land, a wine resort, and luxury homes.
- These choices, made by police officers and firefighters, contrast with the fund's more traditional investments.
Investment Advice for Average Investors
- If complex investments fail pension funds with vast resources and time, they're unsuitable for average investors.
- Stick to simple, broad-based investments like index funds and bonds for better long-term results.