July 25, 2019. We are watching a NEW ISSUE for a possible buy next week. Newtek is offering a baby bond at 5.75%, Ticker: NEWTL. Maturity is 2024. Markets are now so over valued that new issues are one of the few areas we can buy at reasonable prices.
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Pension funds are in deep deep doo-doo. If you are expecting a pension from your government employer, or if your company is promising a pension, you NEED TO BE CONCERNED. Here is a link to an eye=opening article on pensions. The best advice we can give you, especially younger readers: save as much money for retirement that you can. If you can contribute to a 401K especially where they match your amount, TAKE ADVANTAGE OF THAT. You should also hold income producing positions listed in our Core Portfolio.
READ FULL ARTICLE HERE
While pension plans in the United States are guaranteed by a quasi-government agency called the Pension Benefit Guarantee Corporation (PBGC), the reality is the PBGC is already nearly bust from taking over plans following the financial crisis. The PBGC is slated to run out of money in 2025. Moreover, its balance sheet is trivial compared to the multi-trillion dollar pension problem.
The proposal from Congress is simply to use more debt. According to the new legislation, whenever a pension plan runs out of funds, Congress wants the pension plan to borrow money in order to keep making payments to beneficiaries.
Think about that for a moment.
Who would loan money to an insolvent pension fund?
Oh, that would be you, the taxpayer.
In other words, the Government wants you to bail out your own retirement fund.