Modern finance and pensions

"The real crime is claiming 7.75% return is achievable over the long term. "
I Heart CRbot | Tue, 03 Mar 09 18:03:25 -0600 | #

Unfortunately, finance textbooks have been saying that that's the equity premium over the risk-free rate of return for at least 20 years. I can see how people might get confused. Two problems; I don't think there has been statistically meaningful validation of the equity premium:), and at some point market timing comes into play, when the pension has to start paying out.