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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Wyätt Gwyön who wrote (17566)2/20/2004 8:16:40 AM
From: KyrosLRead Replies (1) | Respond to of 306849
 
pension ... as a corporate or junk bond

Since most pensions are guaranteed via the government run Pension Guarantee Corporation, pensions are higher quality than corporate bonds.



To: Wyätt Gwyön who wrote (17566)2/20/2004 9:18:08 AM
From: TommasoRead Replies (1) | Respond to of 306849
 
>> look at it as a corporate or junk bond <<

How about a municipal bond, in the case of a state retirement system?

Given the low rates of interest right now, every $10,000 of annual income on such a defined-benefit package would be worth about $250,000 in capital. Now to think of it that way makes me feel quite substantial.