A Preview of Bush’s Ownership Society,
How Secure Is your Pension Plan ?

With hundreds of lawyers across the country looking for loop holes in state and local pension plans can you say for sure that your pension is safe .

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Once Safe, Public Pensions Are Now Facing Cuts

By MARY WILLIAMS WALSH

Published: November 6, 2006

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http://www.nytimes.com/2006/11/06/business/06pension.html?ei=5088&en=
791a8586de279ea0&ex=1320469200&adxnnl=1&partner=rssnyt&emc
=rss&adxnnlx=1162828789-4n98RD/JGwNz3cNAZAyimw

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After losing a leg in the line of duty, Dan Toneck, a San Diego police officer, spent nearly a year in rehabilitation before returning to work, doing his job for another five years with an artificial limb.

Mr. Toneck, 37, was granted a disability retirement last year after 16 years on the job. Some of his fellow officers wept as he left headquarters for the last time.

Then, 10 months later, the impossible happened. San Diego cut his pension by about 10 percent, along with those of about 180 other disabled city retirees. “They’re trying to pay the bills on the backs of the employees,” Mr. Toneck said…..

“It was guaranteed, written in stone — when I retire, I make this much and they’re not going to be able to touch that,” he said.

His pension was set at about $35,000 a year. But last May, he received a letter saying he would start getting about $31,000 instead.

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In these the most uncertain of all times when it comes to pensions and savings in general is the time ripe to adopt one of the Social Security Reform Plans currently “ ON THE TABLE “.

All of these so called ” private Plans ” have a long list of problems associated with them.

• Many can be used by only some AMERICANS ( How Old Are You?? How much money do you make ? ) Some of the Social Security Reform plans carry income restrictions.
• Artificial minimum start up amounts and management fees , limited access at retirement
• Cost ,,, many of the Social Security Reform Plans will create TRILLION $ DOLLAR $ deficits for future generations of AMERICANS to pay off.

All in all the current retirement thinking is some what one dimensional and myopic. All of the “ main stream ” plans create a leveraged account which is an absolute none starter in the world of LOW RISK retirement investing. A basic rule of thumb is… don’t borrow money to invest for retirement. The leverage of the RNC approved plans drives the risk profile of any of the RNC’s plans to obscene levels.

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There is a better way to invest for retirement

Use the yield of Social Security as the smallest acceptable yield you will accept from a investment of any kind.

If the proposed investment can’t beat Social Security don’t waste your time looking at that investment. If the investment can’t beat Social Security move on to the next one and check the yield against Social Security until you find a safe ( NO LEVERAGE ,, NO BROWED MONEY NO PENNY STOCKS NO JUNK BONDS ect. ) investment .

By using Social Security for that which it was designed,, the base the foundation on which all other retirement plans and savings programs should be built. If the plan can’t beat Social Security it is worthless!!!!

Create your retirement income portfolio with Social Security as the base then add an IRA , a private pension plan CALPERS ect. , a 401k . The idea is to contribute to Social Security + an IRA + a 401k + a private Pension Plan like CALPERS. By continually contributing to Social Security and well diversified IRA’s and 401k”s. The revenue streams that can be derived from your retirement income portfolio at Retirement can be made very stable with low market volatility and reduced asset risk.