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The Disappearing Pension



 By Ryan Payne, President

Let’s talk a little about an endangered species: the pension plan. Unless you’re part of the World War II generation, company-provided pensions are becoming a thing of the past. One great thing about the “Greatest Generation” was they could put their time in at a major corporation and not worry about investing or saving, because they knew at age 60 or 65 they’d get a retirement gold watch and pension to last a lifetime. But now there aren’t many pensions left, and many that still exist are underfunded, so there’s no guarantee you’ll have that life-long income.


Three Keys:

Once a staple of the American workplace, pension plans have mostly faded away

Even the plans that still exist are frequently underfunded

A wise investment strategy can generate the same returns that pensions did in the past

With the exception of government workers, most of the Baby Boomers out there don’t have a pension at all. The advent of 401(k), 403(b), and other self-directed retirement plans has really put the investment onus on you, as well as the accompanying pressure. Furthermore, not only do you have the responsibility of investing money on your own, but you also have to consider longevity. The reality is there’s a good chance you’re going to live longer than your parents, which means you need to make your money last longer too.

So in addition to being an expert in your chosen profession, you’re now asked to be an investment guru and retirement planning specialist. Thus the accountability is on the individual to invest properly. But just because you don’t have a pension doesn’t mean you can’t generate the same returns as past pension plans did. A lot of people may not realize this, but pension funds grow by investing in the stock and bond markets like everybody else.

You just have to be very careful with how you invest and allocate your money to make sure it doesn’t run out in retirement. That means your focus should be on dollar-cost averaging into your investments so you can dollar-cost average out of them once you retire. The good news is you don’t have to try and figure out how to do it all on your own, because the expert team at Payne Capital Management is here to help guide you along the way.



Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Payne Capital Management, LLC), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Payne Capital Management, LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Payne Capital Management, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Payne Capital Management, LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request.