Comments on: Baby Boomers’ Retirement Plans On The Ropes http://www.contrarianprofits.com/articles/baby-boomers-retirement-plans-on-the-ropes/7434 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Thu, 19 Nov 2009 15:59:58 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Matt Holbert http://www.contrarianprofits.com/articles/baby-boomers-retirement-plans-on-the-ropes/7434/comment-page-1#comment-6848 Matt Holbert Sun, 16 Nov 2008 21:27:57 +0000 http://www.contrarianprofits.com/?p=7434#comment-6848 I managed real estate portfolios at two large public funds. Neither has taken any write downs on their separate account real estate portfolios. One of them has had annualized returns of 25% or so in recent quarters. This means that they are employing a great deal of leverage. When they get around to writing down these assets, the value of the funds will take another big hit. We are going to have to fundamentally change the system. (We will be forced to go to something I refer to as a Flow Portfolio.) The current one will not provide and the backlash by those that are not beneficiaries of defined benefit plans -- most taxpayers -- will be vicious. I managed real estate portfolios at two large public funds. Neither has taken any write downs on their separate account real estate portfolios. One of them has had annualized returns of 25% or so in recent quarters. This means that they are employing a great deal of leverage. When they get around to writing down these assets, the value of the funds will take another big hit.

We are going to have to fundamentally change the system. (We will be forced to go to something I refer to as a Flow Portfolio.) The current one will not provide and the backlash by those that are not beneficiaries of defined benefit plans — most taxpayers — will be vicious.

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