Have you looked at your pension balance today?

Even though the left, particularly Obama, love to blame Bush for the housing bubble bursting in 2007-2008 which was actually a result of years of government interference in the housing market, I'm NOT going to blame Obama for what is happening in China this week which is making mincemeat of my pension funds.

 China's economy has become so powerful, the only protection is for us is to have a president and Congress who are capitalists instead of socialists in heart and policy. Socialists only know how to tax the workers to spread the wealth. That doesn't grow the economy.  The irony is that China got this strong by kicking out its communist economists and liberalizing its capitalists. Right now, China's economy is in free fall.

I just got my TIAA-CREF December account report.  I withdrew (by law it's required after 70.5 years) about $4,000, but my gains in investment were about $8,000, so I ended the month at a higher balance than I started with.  That's how every retiree hopes it will work out.  However, the top .01% of the population lost billions on paper this week, and it is now trickling down to  those of us who saved and scrimped during our working years to have enough to retire.  I socked away 15% every month from my paycheck (maximum allowed) in addition to the required amount for the state pension. My health care comes out of my pension, and that's about 13%.  If all I had was a pension, I'd be in poverty.

Follow the money--or the votes.

Seniors are not hurting.

"Sen. Tom Harkin (D., Iowa) has introduced legislation to increase Social Security benefits and build a government-run supplemental saving plan. Sen. Elizabeth Warren (D., Mass.) has so captivated progressives with her demands to raise Social Security payments that she is touted as a potential presidential candidate in 2016."

What this country needs is jobs for young people, not pandering to senior citizens. Today's retirees have been warned since their 30s that Social Security won't be there for them, and most of the couples I know have 5 or 6 streams of income, from a 403-b, or 401-k, or private investments, or annuities, or IRAs, or veterans' pension, or Social Security. There are divorced women living in “committed relationships” still getting financial support from the husband that ran off with his secretary 30 years ago. If they married, they’d lose that.

Politicians know seniors vote. Especially Democrats.

Public pension crisis has some bracing for worst

"A recent study of some 126 state-sponsored pension plans by the Center for Retirement Research revealed that assuming investment returns of 6%, the plans will run out of money by 2023 or 2025, depending on their framework.

Assuming an even more generous 8% investment return, the plans will run out of money in 2033 or 2041."

Should you take out your public pension funds and reinvest on your own?
Investment News
"The Ohio House of Representatives is weighing a slate of changes to the state's five public pension plans, including tying the cost-of-living-adjustment to the Consumer Price Index and capping it at 3%, instead of an automatic 3% increase.

Another part of the law would raise contributions by police officers and firefighters to 12%, from 10%, and raise the age at which employees could take their full pension to 52, from 48."

Although I retired at 60, it looks like today you should plan to work to 65 or 70, unless you've put aside other funds, as we had done. I don't regret a minute that I've had those 10 good years of activities and travel I enjoy--on the other hand, retirement is much more expensive than I imagined. I'm thankful I was able to sock away 15% in tax deferred plans, and for many years learned not to use my income which would have resulted in a more materialistic lifestyle.