Anyone know if pension funds in any country are allowed to take out loans and invest the money in the stock market?
According to experts in Finland this would make a lot of sense and could be a good solution to help with the big and tricky problem of increasingly burden pension burden.
@LeoSammallahti They did this with my city's firefighters and police pensions. It didn't end well.
How come?
Surely any of the most common index funds can beat the interest a pension fund has to pay?
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@LeoSammallahti The goal of most retirement fund management companies is to make money for themselves, not for the beneficiaries of the fund. Studies have shown that a non matching 401k benefit isn't very profitable. i.e., you might be better off to put your money in a savings account than let your employer-selected fund manager have it. @fc
