I was under the impression that the demographics will take care of themselves
A leveraged wealth fund for the country? That’ll end well.
That’s unnecessary, sure we have been told the very obvious pensions time bomb is actually made up and the demographics will look after themselves.
* **Problem**:
Irish people do not have any “assets” (don’t own their own houses, don’t have enough saved in their pension fund. Personal pension funds are generally just savings accounts invested in stocks/bonds)
>A good rule of thumb of what to aim for at retirement is approximately 50% of your gross pre-retirement income.
Taking a 25-50% hit in income may be reasonable if you’ve paid off your mortgage.
**The system is not set up for people to be still renting in retirement.**
* **Obvious solution**:
Solve the housing crisis.
Make sure that either houses are so adorable that everyone owns their own home before retirement.
Or that rent is so cheap that future retirees can afford it.
* **Current government solution**:
According to this article the govt is encouraging everyone to increase their contribution to their pension funds, (ie. buy more stocks that they can’t sell until retirement)
* **This guy’s crazy solution**:
The government, on behalf of the people should take out loans to gamble on the stock market.
“Hey guys, hear me out ‘stonks only go up’.
They haven’t gone down in the last centaury so I’m sure they can only go up in the next centaury.”
But this is doubly stupid plan because if the stonks go down, then that means that we’ll be fucked from both ends.
The govt retirement fund will be invested in the same investments as everyone’s personal retirement fund, except the gov will be leveraged on top of this.
***
We are on paper the richest country per person in the world, and the only way this guy can think to improve the lives of our citizens is to take out loans gamble on the stock market.
A far safer strategy would be to take the loans out, build huge amounts of housing and rent it at slightly above cost. Thus giving a low but reliable ROI.
6 comments
I was under the impression that the demographics will take care of themselves
A leveraged wealth fund for the country? That’ll end well.
That’s unnecessary, sure we have been told the very obvious pensions time bomb is actually made up and the demographics will look after themselves.
* **Problem**:
Irish people do not have any “assets” (don’t own their own houses, don’t have enough saved in their pension fund. Personal pension funds are generally just savings accounts invested in stocks/bonds)
>A good rule of thumb of what to aim for at retirement is approximately 50% of your gross pre-retirement income.
Taking a 25-50% hit in income may be reasonable if you’ve paid off your mortgage.
**The system is not set up for people to be still renting in retirement.**
* **Obvious solution**:
Solve the housing crisis.
Make sure that either houses are so adorable that everyone owns their own home before retirement.
Or that rent is so cheap that future retirees can afford it.
* **Current government solution**:
According to this article the govt is encouraging everyone to increase their contribution to their pension funds, (ie. buy more stocks that they can’t sell until retirement)
* **This guy’s crazy solution**:
The government, on behalf of the people should take out loans to gamble on the stock market.
“Hey guys, hear me out ‘stonks only go up’.
They haven’t gone down in the last centaury so I’m sure they can only go up in the next centaury.”
But this is doubly stupid plan because if the stonks go down, then that means that we’ll be fucked from both ends.
The govt retirement fund will be invested in the same investments as everyone’s personal retirement fund, except the gov will be leveraged on top of this.
***
We are on paper the richest country per person in the world, and the only way this guy can think to improve the lives of our citizens is to take out loans gamble on the stock market.
A far safer strategy would be to take the loans out, build huge amounts of housing and rent it at slightly above cost. Thus giving a low but reliable ROI.
Remember when there was a massive pension fund..