Re: It's about time someone speaks up... Archived Message
Posted by metalhedz on September 7, 2011, 7:11 pm, in reply to "Re: It's about time someone speaks up..."
Returns on investment made simple: If a person (or retirement fund or an other entity) spends their money on an investment they expect to make money on it. If they spend 1.00 they expect to make .20 on it continuously as long as they keep the money invested. (the numbers are just a simple example). The higher the risk the higher the return expectation. The more profitable a company is, the higher the value of their stock is which gives them more capital to expand and find new markets or develop new products. Virtually all retirement plans are based on investing the money and getting enough of a return to cover your cost of retirement. With a 401k or private retirement plan if that doesn't happen it is your loss, but with a pension plan with a guaranteed payout, the payout is the same and the money has to come from somewhere else such as taxes if public, or profits, if private. This is why so many states are in trouble. They have not gotten the return they hoped for and they are still on the hook for the payout.
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Message Thread: | This response ↓
- It's about time someone speaks up... - 3Dee September 6, 2011, 6:52 pm
- Re: It's about time someone speaks up... - Invictus September 6, 2011, 7:40 pm
- Re: It's about time someone speaks up... - Catching September 6, 2011, 8:17 pm
- Re: It's about time someone speaks up... - formerGCian September 7, 2011, 12:48 am
- Re: It's about time someone speaks up... - metalhedz September 7, 2011, 1:34 am
- Another Person Spoke up - 3Dee September 9, 2011, 11:31 am
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