Brendan Burgess
Founder
- Messages
- 52,175
if you can't get government acceptance to use it, what about setting it up a co-op entity and selling it as a product?
I hope you agree that the additional quotes from what I actually wrote give a different perspective.
Brendan, you're sanctifying market values. There's no need to. We can forget about them for much of the time. That's part of the reason I headed one of the sections "Market values must serve investors, not be their masters" You're letting them be your masters.I would go further and say that the government's contribution could be earmarked for the Reserve Fund to make sure that the smoothed value always exceed the market value.
One of the problems is that I don't have that sort of time to see this through. I may even be gone in ten years, not to mind 20 or 50! A more significant challenge however is the requirement to get Central Bank and EIOPA (European Insurance of Occupational Pensions Authority) clearance. I'm confident that can be done.Colm, if you can't get government acceptance to use it, what about setting it up a co-op entity and selling it as a product?
After 5 or 10 or 20 or 50 years of proven returns the idea might seem more palatable/main stream.
Insolvency is being unable to meet your liabilities as they fall due. I have spent ages - running Monte Carlo simulations until I'm blue in the face (or more precisely asking Brian Woods to run such simulations) - to show that the scheme will be able to meet its liabilities as they fall due in all reasonably plausible future scenarios. Brendan, please be careful how you word what you're writing. In particular, be careful about words like "insolvent". I put a lot of effort into thinking through all the complications. Please do the same.The problem is that the fund would be insolvent for a good part of its time and that is part of the design.
No! No! Define insolvent. Insolvent yes if members could withdraw all their funds at any time and smoothed values exceeded market value, that is a tautology. But that is exactly why members would not be allowed to withdraw all their funds at notice.The problem is that the fund would be insolvent for a good part of its time and that is part of the design.
No! No! Define insolvent.
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