The Wall Street Journal on Pension Troubles

Andy Kessler has an article on the pension problems in California, especially their unrealistically high expectation on their rate of return:  “In other words, you can’t wish this stuff away. Over time, returns are going to be subpar and the contributions demanded from cities across California and companies across America are going to go up and more dominoes are going to fall. San Bernardino and seven other California cities may also be headed to Chapter 9. The more Chapter 9 filings, the less money Calpers receives, and the more strain on the fictional expected rate of return until the boiler bursts.”  It’s always a good idea to be doing additional saving, folks.

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