We hear about the future of financial crises all the time.  Whether it will be healthcare, social security, or just a bunch of boomers having to work at Wal-Mart after they retire.  One that doesn’t get as much attention is the coming pension crisis.

We started the move away from pensions years ago because of the same reasons social security will fail; more people getting paid than making payments.  Pensions have been hit pretty hard in the recession because many of them were quite fond of mortgage backed securities.  Congress is putting together legislation with new rules for the pensions but laws aren’t going to fix the problem of simply not having enough money.

The pension crisis won’t impact you and me as much as the recession has, but we’ll likely see some kind of series of pension bailouts over the next couple of decades.  Read more about this in my editor’s choice this week from Darwin’s Finance:

Corporation Pension Shortfall Crisis

Here’s the best of the rest I read this week:

Clever Dude tried to cancel his gym membership.  It’s a funny story about how hard some companies make it for you to cancel a membership or get out of a contract.  I’m glad my new apartment has a gym in the compound.

Personal Finance By The Book suggests you reverse the question to help yourself make a decision.  It’s a classic personal finance trick that never gets enough attention.  To illustrate, imagine you have $1000 to invest or pay off credit card debt at 10%.  Ask yourself, “if I didn’t have credit card debt would I borrow $1,000 at 10% to invest more?”  Sounds crazy, but that is essentially what you’re doing if you choose to invest over paying down debt.  It isn’t perfect, but it helps bring some clarity to decisions.

Consumerism Commentary created a poll on health care issues.  It’s really easy to do and helps you clarify what actually is an issue and what isn’t.  The problem with this poll format is you can see how other people feel before you vote.  With this knowledge, the back of your head will be drawn towards the majority.  If you can avoid that trap you can vote with a clear head.  But this isn’t science so go vote even if your opinion gets skewed.

Bad Money Advice explains why it’s so hard to time the market.  We all know that is true and have read posts like this before, however you haven’t read it from this guy’s perspective.  Imagine the perspective of a grumpy cynic and you’ll get the idea.  Frank is a fantastic writer so you need to read this.

And finally I’m back in the Carnival of Personal Finance this week brought to you by Money Relationship.  This was a really good one.  Want to know why?  Because I was an editor’s choice that’s why!

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categories: links, lists, personal finance