TIme for a New Gameplan?

TIme for a New Gameplan?

As we touched upon in our January, 2013 Fireside Chat, the Private, Public and Union pension deficit in America exceeds $4 trillion, when assets and liabilities are marked to market. Since 1999, pension asset growth has significantly underperformed liability growth and the return on assets (ROA), causing increased contribution costs and a national pension crisis. The true objective of any pension plan is to fund their liabilities (benefit payments) at low and stable contribution costs –with reduced risk through time.

Do you need a new game plan? We’ll explore the asset allocation issues sponsors face and offer solutions for underfunded plans.


 
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KCS as your plan’s liability consultant

KCS as your plan’s liability consultant

Kamp Consulting Solutions, LLC (KCS) was established in 2011 to help plan sponsors address the retirement challenges impacting the beneficiaries we are trying to protect. Action is needed today, and our highly experienced team is prepared to meet our clients’ challenges. We can assume various consulting roles for your organization, including generalist, liability-focused or project-specific. See http://www.kampconsultingsolutions.com to learn more.

The Ability to Retire is a Benefit to be Cherished!

Too many of us take for granted that we will one day be able to retire, and retire with dignity!  Unfortunately, a proper retirement is becoming a pipe dream for most of us.  If you are among the select few in the private sector that receives the benefit from or currently participates in a defined benefit plan, consider yourself to be extremely fortunate.  Corporate DB plans may soon be as rare as a NY Mets championship.  Employees in the public sector still participate at a high rate (roughly 87%), but there is growing pressure on their plans to shift the liability from municipalities / counties / states, etc. to the individual participant through defined contribution plans.  By whatever means you have, you should fight this trend!

At KCS, we have written a number of articles on the importance of DB plans to individuals, families and more broadly, our society.  These articles are available on our website at http://www.kampconsultingsolutions.com.  I would encourage you to review some of our thoughts on the subject, as your future retirement may just be on the line.

Asking an untrained individual to make retirement decisions for their own account is a formula for disaster! Yet, that is precisely what we are doing by transferring our employees into defined contribution plans.  Asking an employee making less than $40,000 / year, who has a spouse and children, to divert a portion of their compensation to fund a retirement program is a JOKE!.  Life gets in the way, and it is silly to think that individual can safely put away enough to generate even a modest retirement income.  Allowing a participant to have access to their retirement assets prematurely is a structural failure! 

It is shameful that most of us in the investment industry have done extremely well financially by picking at the DB carcass, while too many participants can’t retire. SHAMEFUL! It is time that we as an industry rally around the issue of retirement security, and begin to pose real solutions to this crisis that adequately places the risk on the shoulders of those that can handle the responsibility before we don’t have anyone retiring in this country.  Just imagine the social, economic and political implications of that development!

Is Quant Investing Dead? All Hail Quant!

Is Quant Investing Dead? All Hail Quant!

We are pleased to share with you the latest KCS Fireside Chat, titled, “Is Quant Investing Dead? All Hail Quant!”

 

There are thousands of investment management “firms” and a multitude of investment products with various wrappers that investors can choose.  Given that breadth of offerings, it becomes obvious that there isn’t one way to invest in the markets.  But is there an investing approach, tool or set of skills that improves one’s odds of beating the averages? YES!

 

There is a longer version on this paper that is available on request.