Florida State Retirement Plan Loses Billions Through Inept Pension Investing

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There are no experts with regard to predicting market turning point, up or down. Your retirement plan must include managed portfolio solutions with a clear strategy and process.

The widespread belief that there are experts who can predict movement of the markets is simply false. If it were true, these self-styled guruswould have a consistent record of outperforming their designated benchmarks. They don’t.Florida‘s pension fund is as excellent example of this charade. A recent article in the St. Petersburg Times by award winning financial journalist Sydney P. Freedberg found that investing in various portfolios of index funds outperformed the pension fund investments over the past decade and from 1984 through 2011. The difference over the past decade was as much as $5 billion. The plan manages $159 billion.

This is additional evidence that no one can consistently predict the future. There will be countless ‘gurus’ exclaiming how they predicted the recent downturn. Unfortunately, if true, for investors there is no assurance they will do it again.

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