CalPERS beneficiaries: take a lump payout TODAY

PRCD

Michael Peterson status
Feb 25, 2020
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I've told all my friends in the public sector this for years, but it's getting a lot worse:

The CIO Yu (Ben) Meng was a member of the "10,000 Talents" program and is supposedly into a ton of dubious ChiCom investments.

Get out today. Move it into a 403(b) NOW.
 

PRCD

Michael Peterson status
Feb 25, 2020
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what do you think the risk profile is for someone that is over 80?
Depends on if the person has longevity in their genes. UMC types live on average 84 years. Illinois is going bankrupt sooner than California and they've been able to extend this longer than I thought. Much depends on the stock market.

I don't think Yu Meng is up to any good. They and the ChiComs could be trying to do to California what they've done to a lot of other countries: loan them money and take their stuff when they can't repay. If Chairman Yu gets CalPERS into a bunch of bad investments, might China offer to shore up the fund? If so, what then?
 

enframed

Miki Dora status
Apr 11, 2006
4,011
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Del Boca Vista, Phase III
Depends on if the person has longevity in their genes. UMC types live on average 84 years. Illinois is going bankrupt sooner than California and they've been able to extend this longer than I thought. Much depends on the stock market.

I don't think Yu Meng is up to any good. They and the ChiComs could be trying to do to California what they've done to a lot of other countries: loan them money and take their stuff when they can't repay. If Chairman Yu gets CalPERS into a bunch of bad investments, might China offer to shore up the fund? If so, what then?
 

PRCD

Michael Peterson status
Feb 25, 2020
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I'm going to draw on my CalPers pension in 3 years.

So plan on them being insolvent at that point.
You can take a lump payout and roll the whole thing into Vanguard, which is what the CIO should be doing in the first place. Multiply the payout by 4% and that will tell you how much you have to live on every year.
 

hammies

Miki Dora status
Apr 8, 2006
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Pers is screwed because it's so easy to increase your payout with pension spiking. It makes it really difficult for communities to pay their fair share. STRS makes it a lot harder to do and they are a lot more solvent.
 
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PRCD

Michael Peterson status
Feb 25, 2020
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CalPERS CIO/Obvious CCP operative Yu Ben Meng resigns following false statements on disclosures:

Naked Capitalism is a LEFT wing site. Don't flame me for my sources.

Edit: lol/LMAO: https://www.nakedcapitalism.com/2020/07/new-study-slams-public-pension-funds-alternative-investments-as-drag-on-performance-identifies-calpers-as-one-of-the-worst-negative-alphas-shows-folly-of-calpers-desperate-plan-to-increase-p.html
 

surf cat

Rabbitt Bartholomew status
Jan 14, 2002
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Good Grief I just retired from my school janitor gig after 24 years.


Anyone with any with any ideas. what to do. Did I retire soon enough ?
 
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crustBrother

Miki Dora status
Apr 23, 2001
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Good Grief I just retired from my school janitor gig after 24 years.


Anyone with any with any ideas. what to do. Did I retire soon enough ?
@surf cat , I would recommend ignoring this thread entirely. Nobody knows the future. Go with the flow and enjoy your life, Dale. Ride a wave for me if you can. Thanks!

(PS, @PRCD , I don't really disagree with you. I quit my job working for the state of california back in 2006 because of my concerns about long term PERS solvency. But, I think there is a *very* good chance that the fed will print some more money and "fix" this situation.)
 
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Autoprax

Duke status
Jan 24, 2011
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Vagina Point
You can take a lump payout and roll the whole thing into Vanguard, which is what the CIO should be doing in the first place. Multiply the payout by 4% and that will tell you how much you have to live on every year.


I can't remember if I am cal pers or strs.

I always said that I planned on not getting my retirement.

You can't loose if you never planned to win.
 

test_article

Rabbitt Bartholomew status
Sep 25, 2009
8,213
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Body of Christ, Texas
What if Vanguard won't help us? What if Treasuries won't help us?

Take that lump sum and invest in the tools to sustain and defend your own means of producing food, shelter and clothing. It helps to have hard-working, trustworthy friends with similar resources, a lot of them. That could work until the balloon goes up. If you're still around after that, there's marauding and cannibalism.
 

PRCD

Michael Peterson status
Feb 25, 2020
2,088
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I can't remember if I am cal pers or strs.

I always said that I planned on not getting my retirement.

You can't loose if you never planned to win.
You're probably CalSTRS. Find out. If the pension goes belly-up, which Yves doesn't think is likely soon, you'll get maybe 30%. If you get a lump sum, you'll get a lot more but not what the pension promised you in the first place. The thing is, the pension can't keep its promises. Neither can the entities that pay into the pension such as the Cal State.

@surf cat , I would recommend ignoring this thread entirely. Nobody knows the future. Go with the flow and enjoy your life, Dale. Ride a wave for me if you can. Thanks!

(PS, @PRCD , I don't really disagree with you. I quite my job working for the state of california back in 2006 because of my concerns about long term PERS solvency. But, I think there is a *very* good chance that the fed will print some more money and "fix" this situation.)
The Fed could but it would be a "one-time" fix. They'd have to do it continuously for years. The pensions would have to issue some kind of bond for the Fed to buy. Congress could do it with some bailout also, but Congress is the least-trusted institution in the USA.

The stock market is back up but CalPERS wasn't positioned to capture the upswing because Ben Meng was too busy firing the competent managers and making money for the CCP and other cronies. You also have to look at how fast the tax base is dying in this state. The tax base ultimately funds the annual payments into the pensions.

I'm not telling anyone what do to despite the title of this thread haha. Were it me, I'd roll it into Vanguard.
 
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Autoprax

Duke status
Jan 24, 2011
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What if Vanguard won't help us? What if Treasuries won't help us?

Take that lump sum and invest in the tools to sustain and defend your own means of producing food, shelter and clothing. It helps to have hard-working, trustworthy friends with similar resources, a lot of them. That could work until the balloon goes up. If you're still around after that, there's marauding and cannibalism.
The long dog?