Guess which one delivers better returns for both taxpayers and pensioners?
{{ The investment board paid a total of about $66 million to roughly 300 people last year in salary and other compensation as well as bonuses for their performance in 2021. The average bonus for the 84 investment management staffers was $206,452, state auditors found.
State auditors have raised concerns about compensation, though. In one case they flagged, an investment board employee got a $180,000 signing bonus in 2019, then left the next year with another $180,000 in severance—without paying back the signing bonus.
{{ Steve Edmundson has no co-workers, rarely takes meetings and often eats leftovers at his desk. With that dynamic workday, the investment chief for the Nevada Public Employees’ Retirement System is out-earning pension funds that have hundreds on staff.
His daily trading strategy: Do as little as possible, usually nothing.
The Nevada system’s stocks and bonds are all in low-cost funds that mimic indexes. Mr. Edmundson may make one change to the portfolio a year.
News doesn’t matter much.
Will the 2016 elections affect his portfolio? “No.”
Oil prices? “No.”
He follows Fed Chairwoman Janet Yellen, but “there’s a difference between watching and acting.”
Mr. Edmundson, 44 years old, has until recently been a pension-world outlier. Other state retirement systems turned to complicated investments and costly money managers to try to outperform markets with algorithms and smarts.
His strategy is to keep costs low and not try beating markets, he says. “We’re bare bones.” }}
After doing this for 40+ years, I’ve learned that It’s possible to retire early just by not letting yourself get screwed. You don’t have to invent something, start a business, or do anything special. Merely watching your expenses and capturing the “skim-free”, compounded return on a broad stock market index fund over an investing lifetime is enough to do it for you. There’s even a good chance it will make you reasonably wealthy, all with doing squat.
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