Friday, June 21, 2013

Summer Solstice 2013 Update

As summer begins, I find myself in the fortunate position of having already completed two of my three financial goals for 2013.  My mortgage balance is now below $40K, and my accrued yearly pension (payable at age 57) now exceeds $18,000.  Unfortunately, I also find that my pension plan is in the process of being terminated.  This means I will no longer accrue any additional money, and depending on the financial factors used in the structuring of the payout, the result may be more or less favorable than expected.

I expect the markets to experience rough sailing during the second half of 2013.  Valuations in all asset classes are stretched, and there are huge structural imbalances in our global financial system.  These problems are lurking in areas where most people are not looking, so there is the potential for nasty surprises.  Nonetheless, I shall endeavor to continue to make rational decisions based upon a long term perspective.

But for now, it is time for both relaxation and contemplation via a much needed vacation.


  1. That really stinks about your pension! People think I'm crazy when I write posts about how we need to move on from pensions and control our own destinies. This is a perfect example. Fortunately I've only had to fight off one attack on my wife's pension. I hope we can make it 12 more years without losing it or seeing it get reduced.

    Enjoy the summer!

  2. Obviously I know nothing about your company but I do know when news like this occur in Canada, reactions vary greatly depending on whether the company is public or private.

    If it is private and the future is foggy, I would want my money now if possible.

    If they are just no longer offering a defined benefit plan but switching to a defined contribution one and the existing plans are "safe"/grandfathered, then that's a different ball game.

    Either way that's big news even for someone as prepared as yourself, and much more so for those who are no where close.

  3. MW,

    I have my doubts about the ability of the company to fund it properly, but at any rate, it's covered by the PBGC, so I think I'm OK. But I can't sugercoat the fact that I've lost the ability to generate a lot of additional pension dollars in the next few years should I choose to keep working there. If there is a silver lining, it's that I won't have the pension to keep me from moving on to other things.

  4. Welcome Back!

    No, there is nothing holding you to them now, short of just continued income which you could find elsewhere under many different setups. Exciting thought, huh?

    It sounds like you were in the company of some "outside of the box" people and ideas. Couldn't have come at a better time, I think.


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