FYI: (This is a follow-up article.)
The late-Peter Bernstein once wrote, “The market’s not a very accommodating machine; it won’t provide high returns just because you need them.”
When you do need higher investment returns because of a perceived shortfall in assets for a specific goal you generally have 3 options to remedy the situation:
(1) Adjust your expectations, and therefore, your lifestyle or goals.
(2) Increase your savings rate.
(3) Take more risk.
The first two options are for the realists while the third option is for the optimists.
It appears CalPERS is an optimist.
Regards,
Ted
https://awealthofcommonsense.com/2019/03/the-market-wont-provide-high-returns-just-because-you-need-them/
