Originally Posted by Boomer (Post 2332142)

STRS, the State Teachers Retirement System of Ohio, is under serious controversy with some big questions about finance and transparency. ‘CHAOS’ is the word being used in some headlines in the Buckeye State.

WCPO in Cincinnati has a May 16 article on their site that addresses the reasons for the questioning of those who have been handling the investments of the fund’s $65 Billion.

Even if you are not a retired Ohio teacher but are someone whose retirement funds are in someone else’s hands, you should probably read about this mess.

Boomer

PS: All Bogleheads and other index fund investors will appreciate the part about those “actively managed” funds. Not only Bogle, but also the famous book “A Random Walk Down Wall Street” by Burton Malkiel prescribed index funds decades ago.

The mess in Ohio is looking like a classic example of what can happen if the wrong people get their hands on other people’s money. “Where there’s smoke” ??? ……..

When it comes to choosing who gets to invest other people’s money, scrutiny of the advisory is of top importance. Too many wolves out there merrily guarding lambs. BILLIONS! EEK! I guess we will see where this one goes.

Originally Posted by Boomer (Post 2332142)

STRS, the State Teachers Retirement System of Ohio, is under serious controversy with some big questions about finance and transparency. ‘CHAOS’ is the word being used in some headlines in the Buckeye State.

WCPO in Cincinnati has a May 16 article on their site that addresses the reasons for the questioning of those who have been handling the investments of the fund’s $65 Billion.

Even if you are not a retired Ohio teacher but are someone whose retirement funds are in someone else’s hands, you should probably read about this mess.

Boomer

PS: All Bogleheads and other index fund investors will appreciate the part about those “actively managed” funds. Not only Bogle, but also the famous book “A Random Walk Down Wall Street” by Burton Malkiel prescribed index funds decades ago.

The mess in Ohio is looking like a classic example of what can happen if the wrong people get their hands on other people’s money. “Where there’s smoke” ??? ……..

When it comes to choosing who gets to invest other people’s money, scrutiny of the advisory is of top importance. Too many wolves out there merrily guarding lambs. BILLIONS! EEK! I guess we will see where this one goes.

Originally Posted by jojo (Post 2332352)

Actually STRS manages 93 billion. The teachers have been protesting for several years and just this year have managed to get a majority on the board. Last year one day before the election results were announced Governor DeWine replaced an appointed board member so that the reformers would not have a majority. That board member was reinstated by the courts in April. This month, days before another reform candidate was elected (85,000 to 3,000 votes), the Governor and State Attorney General filed charges against two board members who four years ago had put forth a proposal for another investment company to manage some of the funds. This was based on an anonymous letter from someone at STRS. Nothing happened. i.e. there were no funds invested. There is a history of risky investments in private equity, hedge funds, downtown buildings that are now empty, international holdings with lavish bonuses for Wall Street. Teachers are suspicious that the politicos have something to hide. I just watched the entire board meeting. I am a confirmed Boglehead and the teachers have been asking for indexed funds. Someone posted that Nevada has 2 employees. Ohio has 500. State media have not covered the story well. Stay tuned.

Originally Posted by Normal (Post 2332247)

California’s system was denied a federal bailout, how would you think Ohio had any chance of a bailout? The teachers never supported the federal system, there is really no leg to stand on.

The state will figure itself out.

Originally Posted by Boomer (Post 2332142)

STRS, the State Teachers Retirement System of Ohio, is under serious controversy with some big questions about finance and transparency. ‘CHAOS’ is the word being used in some headlines in the Buckeye State.

WCPO in Cincinnati has a May 16 article on their site that addresses the reasons for the questioning of those who have been handling the investments of the fund’s $65 Billion.

Even if you are not a retired Ohio teacher but are someone whose retirement funds are in someone else’s hands, you should probably read about this mess.

Boomer

PS: All Bogleheads and other index fund investors will appreciate the part about those “actively managed” funds. Not only Bogle, but also the famous book “A Random Walk Down Wall Street” by Burton Malkiel prescribed index funds decades ago.

The mess in Ohio is looking like a classic example of what can happen if the wrong people get their hands on other people’s money. “Where there’s smoke” ??? ……..

When it comes to choosing who gets to invest other people’s money, scrutiny of the advisory is of top importance. Too many wolves out there merrily guarding lambs. BILLIONS! EEK! I guess we will see where this one goes.

Originally Posted by graciegirl (Post 2332188)

I tried to understand better what you are saying. I don't know what a "boglehead" is. I found this article from the Cincinnati Enquirer. Can you try to clarify a bit more?

https://www.msn.com/en-us/money/othe...d=BingNewsSerp

Originally Posted by jimbomaybe (Post 2332181)

The under funding and mismanagement of public pension funds could very well be a very large financial disaster waiting to happen, all too much political influence in the management of those funds, being public retirement funds they have a different set of federal regulations governing them, many would have gone into receivership due to the funding levels if they were private retirement funds but being public retirement funds it is assumed they can always raise taxes to cover their obligations, rather than spend money on future obligations municipal managers would rather of course spend money on more important things, kicking the can down the road gets more and more difficult and dangerous as the unfunded liabilities get bigger and bigger, the cascading effect of default could make the 2008 housing meltdown a minor blip by comparison , or so some will tell you

Originally Posted by manaboutown (Post 2332193)

Gracie, a Boglehead is basically an index fund investor.

This book is highly informative about their investment philosophy which follows that of Jack Bogle, the founder of The Vanguard Group.

John C. Bogle - Wikipedia

Amazon.com

Originally Posted by jojo (Post 2332352)

Actually STRS manages 93 billion. The teachers have been protesting for several years and just this year have managed to get a majority on the board. Last year one day before the election results were announced Governor DeWine replaced an appointed board member so that the reformers would not have a majority. That board member was reinstated by the courts in April. This month, days before another reform candidate was elected (85,000 to 3,000 votes), the Governor and State Attorney General filed charges against two board members who four years ago had put forth a proposal for another investment company to manage some of the funds. This was based on an anonymous letter from someone at STRS. Nothing happened. i.e. there were no funds invested. There is a history of risky investments in private equity, hedge funds, downtown buildings that are now empty, international holdings with lavish bonuses for Wall Street. Teachers are suspicious that the politicos have something to hide. I just watched the entire board meeting. I am a confirmed Boglehead and the teachers have been asking for indexed funds. Someone posted that Nevada has 2 employees. Ohio has 500. State media have not covered the story well. Stay tuned.

Originally Posted by opinionist (Post 2332348)

The coming default on the National Debt is a bigger problem. The two choices are direct default with a total loss of available credit (supply chains get frozen) or printing money until it takes a wheelbarrow of cash to buy a loaf of bread. Printing money seems to be more popular.

Originally Posted by Marine1974 (Post 2332360)

The state of Illinois is suffering from a government-worker pension shortfall of over $111 billion – the worst retirement crisis in the nation. Government-worker pension costs are overwhelming the state's budget: 19 percent of the budget is going to pay for pensions, compared to 4 percent in other states.