I know you're just joking, but have you looked at the Pension Fund annual reports posted on the website? Other than the disastrous 2 - 3 years of the Great Recession, the General Retirement fund has mostly exceeded 8% returns annually. Because of the difference between fiscal years and calendar years, I assume the recession losses actually get spread out over about 3 years.
When I got down to the 2004 report, it noted that the 15-year average leading up to that report was 8.2%. Haven't looked at the Police and Fire Fund yet, but since it's better off than the GRS it might have an even better track record.
Oh, that we could exclude bad years from our 401k accounts. Are you at all suspicious of their valuation methods? Or were they all invested in liquid, widely traded assets?I know you're just joking, but have you looked at the Pension Fund annual reports posted on the website? Other than the disastrous 2 - 3 years of the Great Recession, the General Retirement fund has mostly exceeded 8% returns annually. Because of the difference between fiscal years and calendar years, I assume the recession losses actually get spread out over about 3 years.
When I got down to the 2004 report, it noted that the 15-year average leading up to that report was 8.2%. Haven't looked at the Police and Fire Fund yet, but since it's better off than the GRS it might have an even better track record.
What was the overall return including bad years?
For the 14 years listed, which includes 1998 - 2011, the average is 6.58%. 1998 - 2007 [[excluding the Great Recession years) gives an average of 9.55%. Looking at the entire track record, and knowing that the markets have been recovering since 2011, and knowing that these are long-term funds, not short term, I would think that even with bad years, 7.9% average rate of return is not quite as ridiculous as people try to make it seem.
I don't have enough expertise and haven't done enough research to comment on the validity of their valuation methods. I looked at the investment section and see that publicly traded stock is about 52% of assets, real/personal equity 10%, debt obligations [[bonds, notes, mortgage-backed securities, etc.) 6%, mortgages 5%, small business 2%, managed fund accounts 12% [[looked like energy funds, equity funds and some other stuff), foreign securities 8%, and then some miscellaneous stuff for the other 5%.
Thanks. I'm actually pretty impressed that they've managed to get that level of return.For the 14 years listed, which includes 1998 - 2011, the average is 6.58%. 1998 - 2007 [[excluding the Great Recession years) gives an average of 9.55%. Looking at the entire track record, and knowing that the markets have been recovering since 2011, and knowing that these are long-term funds, not short term, I would think that even with bad years, 7.9% average rate of return is not quite as ridiculous as people try to make it seem.
I don't have enough expertise and haven't done enough research to comment on the validity of their valuation methods. I looked at the investment section and see that publicly traded stock is about 52% of assets, real/personal equity 10%, debt obligations [[bonds, notes, mortgage-backed securities, etc.) 6%, mortgages 5%, small business 2%, managed fund accounts 12% [[looked like energy funds, equity funds and some other stuff), foreign securities 8%, and then some miscellaneous stuff for the other 5%.
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