Cal-PERS is in the pickle they’re in because of their optimistic assumptions about returns — about 8-9% is what they’ve usually projected over the past 15 years. They have a huge deficit NOT because of “greedy unions” (though Gov. Davis didn’t help things when he increased their retirement benefits), but because of the double-whammy of the stock/tech crash and the subsequent RE/credit/stock market crash. If not for these downturns, Cal-PERS would be in pretty good shape (again, the increase in benefits passed in 1999/2000 needs to be reversed, IMHO).
If you can earn 8% every year over 15 years — especially these past 15 years (and no losses?!?) — then you are in the wrong business, IMHO. Run, don’t walk, over to Wall Street and start earning your millions. 😉
Not sure that an RN who works only weekends can make $75K, either, but admit to not knowing for sure. I think they have to work **at least** three days, 12 hours each shift. If both spouses are RNs and they work opposing shifts (eliminating the need for childcare), then they would only see each other one day a week. Not sure that’s really feasible either (unless you really hate your spouse).
Have to agree with sdcellar here. Your assumptions about savings and returns are **mighty** optimistic.
