manshimajin Posted January 17, 2010 Share Posted January 17, 2010 Welfare benefits review on the way Golly does this mean at long last the members of Tynwald are going to pay for their pensions themselves and to do away with their allowances? That is economic suicide. They cannot 'force' people to invest their pension money back into Manx infrastructure or the Manx economy. In fact that would be entirely inappropriate - nothing short of what bankrupt governments like Argentina did when they ran out of cash. Its a completely worthless stupid idea. If it got to this stage then there is no hope for anyone. OMF I understand that sensibly managed pensions need to be invested in a mix of cash, fixed interest, equities and property (which can include infrastructure). I am not sure what Triskelion was advocating but wouldit be silly to invest a portion of the funds into local property and infrastructure? Or are you saying that local property would not have the same value as foreign property and infrastructure? Clearly nobody in their right mind would invest 100% here but maybe 10%-20% could be reasonable. Certainly commercial property anywhere at the moment requires a lot of skill given the levels of borrowing that have to be refinanced over then next 2-3 year against severely depressed values. Link to comment Share on other sites More sharing options...
triskelion Posted January 17, 2010 Share Posted January 17, 2010 That is economic suicide. They cannot 'force' people to invest their pension money back into Manx infrastructure or the Manx economy. In fact that would be entirely inappropriate - nothing short of what bankrupt governments like Argentina did when they ran out of cash. If you take away the final salary pension it will be essential for any trustees appointed to appropriately diversify the money away from any one area to protect the members long term interests - they would have to diversify the investment risk. It would be completely inappropriate to force all the money to be unlocked to support local investment because if the IoM implodes you've just wiped out the pensions of every government worker and the board of trustees would get its ass sued from here to kingdom come. Its a completely worthless stupid idea. If it got to this stage then there is no hope for anyone. Bit of an over-reaction, especially as no one mentioned 'forcing' people to invest their pensions into infrastructure on the Island. The majority of pension funds aren't productively invested - just gambled on the stock exchange. Seems to make sense that at least some of the very substantial funds involved be invested here. Link to comment Share on other sites More sharing options...
oldmanxfella Posted January 17, 2010 Share Posted January 17, 2010 That is economic suicide. They cannot 'force' people to invest their pension money back into Manx infrastructure or the Manx economy. In fact that would be entirely inappropriate - nothing short of what bankrupt governments like Argentina did when they ran out of cash. If you take away the final salary pension it will be essential for any trustees appointed to appropriately diversify the money away from any one area to protect the members long term interests - they would have to diversify the investment risk. It would be completely inappropriate to force all the money to be unlocked to support local investment because if the IoM implodes you've just wiped out the pensions of every government worker and the board of trustees would get its ass sued from here to kingdom come. Its a completely worthless stupid idea. If it got to this stage then there is no hope for anyone. Bit of an over-reaction, especially as no one mentioned 'forcing' people to invest their pensions into infrastructure on the Island. The majority of pension funds aren't productively invested - just gambled on the stock exchange. Seems to make sense that at least some of the very substantial funds involved be invested here. Over-reaction? Not really its an incredibly naive and stupid idea that completely dis regards the fact that the pension fund trustees would be totally compromised and potentially exposed to litigation to even think about it - you can't use state controlled pension funds to follow a political agenda or to bolster state coffers. Having said its stupid and plain wrong it one of Murphy's ideas isn't it? Therefore I'm not really surprised. I think its up to people to decide what is 'unproductive' when it comes to investing pensions - many might be finding the stockmarket good value at the moment - its certainly not for governments to look to hijack their life savings to bail them out of the crap by selling them their own assets to lease back through the state pension fund. Here's some interesting reading ..... http://blogs.telegraph.co.uk/finance/ambro...ebts_Whos_next/ Bankrupt kleptocratic governments the world over love these sort of suggestions. Link to comment Share on other sites More sharing options...
triskelion Posted January 18, 2010 Share Posted January 18, 2010 I think its up to people to decide what is 'unproductive' when it comes to investing pensions - many might be finding the stockmarket good value at the moment. Who's suggesting that people shouldn't decide? I imagine they weren't feeling so good about the stockmarket last January. Link to comment Share on other sites More sharing options...
localyokel Posted January 18, 2010 Share Posted January 18, 2010 I imagine they weren't feeling so good about the stockmarket last January. But if the had the balls to pile in last March they'd be 30-40% up. Its all very subjective really isn't it? Link to comment Share on other sites More sharing options...
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