This Article is About
retirement
president richard nixon
connecticut teachers
retirement pensions
retirement fund
state of connecticut
Your Connecticut Teacher’s Retirement Should Be More Valuable Than Gold
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Your Connecticut Teacher’s Retirement Should Be More Valuable Than Gold

Connecticut teachers have contributions taken out of their pay checks each and every pay day in order to be deposited into the Connecticut Teachers Retirement Fund. Your employee contributions are a significant portion of your overall salary and this money is supposed to be matched by The State of Connecticut. At the end of a long career you and other teachers look forward to receiving the pension checks you were told you would receive. These retirement checks are a form of passive income that should be coming from a pension fund that is more valuable than gold. Unfortunately, the Connecticut Teachers’ Retirement Fund is actually being funded by tax payers these days.

Sure Connecticut teachers still make contributions to the retirement pension fund. The money is withdrawn from the teacher’s pay each pay period automatically. But is anyone checking to see if the State of Connecticut has been making their contributions? Who is deciding how to invest all of that money in order to ensure that already retired teachers and future retirees have pension money to live on? Most Connecticut teachers do not think about the status of their pension because until now retirement checks have continued to be issued. Teachers think of their pensions as being reliable and safe. Just as many Americans had thought the value of the U.S. dollar was reliable and safe because it was backed by gold. Connecticut teachers’ retirement pensions are also about to change drastically.

As some of you know, the U.S. Dollar was taken off of the gold standard by President Richard Nixon in 1971. Since then the value of the Dollar has steadily decreased and so has the value of the Connecticut Teacher’s Pension Fund. The Connecticut Teachers’ Pension is supposed to be a promise to pay its retired teachers but the Connecticut Teacher’s Retirement Fund is currently in debt over $9 Billion. Even though the U.S. economy will eventually suffer greatly due to being taken off of the gold standard there has been some incredible investment opportunities between 1971 and today. But what kind of opportunities have you had with the money in your Connecticut Teachers’ Pension? If you do not heed my warnings you will not have any investment choices with your pension money

You currently deposit your money each pay period and you rely on the State of Connecticut’s promise to make its payment. Your payments are in exchange for Connecticut’s promise to pay you when you retire. Governor Dannel P. Malloy would make sure the state makes its payments right? The truth is the Connecticut teachers’ retirement fund will not be able to pay retired teachers much longer no matter who is governor.

But what about the investment returns of all of that deposited pension money? Have the Connecticut teachers been checking to see if wise investment choices were being made? Has the Connecticut Teachers’ pension fund gone up in value for the past forty years like the value of gold has? We will likely never know every single stock, bond and real estate fund that the State of Connecticut invested in with your financial nest egg. But I can tell you that currently Connecticut is in the absolute worst financial position of all 50 states. Connecticut is actually considered a sinkhole state. Yes, a sinkhole state. That means the bottom is about to drop out. The financial burden expended on every single Connecticut taxpayer is currently $49,000.00.

So if every single Connecticut taxpayer paid an extra $49,000.00 the state budget would be balanced. Obviously that will never happen. And neither will Governor Dannel P. Malloy pay back all of the money to your Connecticut Teachers’ Retirement Fund. In fairness to Governor Malloy, he was not even elected governor yet when the mishandling of your pension money began. Likewise, it would not be fair to blame President Obama on Nixon’s decision to take the dollar off of the gold standard. You might not be able to control what your Connecticut teachers’ retirement money is invested in but you can begin your own pension today and invest in whatever you want.

It’s time to get back on the gold standard. The United States won’t get back on the gold standard but you can get on your own gold standard. Invest in yourself and don’t rely on the financially broken state of Connecticut to pay for your retirement. If you diversify your time and your earnings you can have a very solid retirement even if Connecticut does not balance its budget.

Educate yourself on how to protect your pension. Learn how Connecticut teachers can bailout of their underfunded pension and create passive income for life.


Street Talk

Great read Jay. This is a very interesting topic. I wonder how many across the country are in the same boat?

Reply
  about 1 decade ago

Thanks so much Shawn. There are many state pensions in a similar situation. I want more Connecticut teachers and other governemnt employees to start their plan B as soon as possible. Appreciate your comments Shawn

Reply
  about 1 decade ago
AJ  

Jay, you are sharing some very important information on the CT teachers' retirement fund crisis. With the school year fast approaching, many teachers are focusing on lesson plans not on future retirement income. They expect that since they pay into the pension fund, it will pay them back later. It won't. I hope they follow your advice. Nice website by the way - lots of great info for teachers there.

Reply
  about 1 decade ago

Unfortunately AJ, people don't react to things until they are moments away from being hurt. People don't feel safe reacting on their instincts unless the majority is also reacting. Connecticut teachers are a very smart group of people. If I can show them that their safe haven pension is not so safe then they have a chance to create another type of nest egg. Not all will listen for sure. Thank you for the website compliments too!

Reply
  about 1 decade ago
Joan S  

Pretty nearly all pensions seem to be in jeopardy lately. Teachers have always relied on pensions for their retirement. As far as the Gold Standard is concerned, from what I have read, we haven't had a Gold Standard for a very long time. We were printing paper money notes in 1913. The Gold Standard started to break down during WW1. It was reinstated in 1925, lasted 6 years. Then in 1933, people tried to cash in as a result of the Depression. President Roosevelt nationalized gold owned by private citizens. The central bank was actually bankrupt, and it was illegal for people to hold gold. The standard was modified again in 1946 which lasted until 1971. During this time, gold could be redeemed at a fixed rate of 35 dollars per ounce. But the US couldn't even handle that. US refused to admit there wasn't enough gold, so Nixon just closed down the window. It was the work of many administrations trying to patch up a botched up job. I'm not happy with any of this because a contract should be honored. It's concerning. I'm from Connecticut too. As you know, we are a heavily taxed state. Just wonder about how well we have been managed, or not. Thanks for the thought provoking article Jay.

Reply
  about 1 decade ago

I don't think many people in 1971 understood that taking the US dollar off the gold standard would one day help cripple the US economy. After all, there were decades of decadence that followed 1971. Living high on the hog became the norm here in the USA since our government just printed money whenever it felt like it. The turbocharged printing presses have only increased speed and debt levels will catch up with us soon. If this wasn't bad enough, the state pension systems across the country have not been monitored properly and probably were not set up properly from the beginning. I want those pension contributing employees to become aware of the fact that pensions are not as guaranteed as they thought and many should start a plan B before their pension is slashed or dissolved. Thanks for the insightful comments Joan!

Reply
  about 1 decade ago

How important it is to check on these things.. the day might come that the teachers find they no longer have a scheme as its gone belly up... good article expounding great knowledge of the subject...

Reply
  about 1 decade ago

I really hope not Rob. But unfortunately I think it is inevitable. I would really like to be wrong about this. The good news is it's not too late to start your own pension just in case things don't work out as planned. Thanks for your comments

Reply
  about 1 decade ago
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