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A Fire Department's Pension Is Underfunded By $1 Billion. Dave Ramsey Instantly Thinks It's In Illinois, Left Dumbfounded It's Actually In Texas
Yahoo Financeยท 2025-10-05 17:30
Core Insights - A Texas firefighter expressed concerns about his department's pension being over $1 billion underfunded, leading to doubts about the viability of his career in that department [1][4] - The firefighter is required to contribute 13% of his paycheck to the pension, which he feels is financially irresponsible given the pension's poor management [2][3] - Financial experts suggest that the firefighter should consider leaving the department to avoid long-term financial harm, despite the emotional difficulty of leaving a dream job [4] Pension Management Concerns - The firefighter's pension situation is described as akin to "burning" 13% of his income weekly, raising significant concerns about the management and future viability of the pension fund [3] - The financial experts highlighted that if the firefighter could invest that 13% in a solid 401(k), he could potentially become a millionaire, contrasting sharply with the current pension situation [3] Recommendations - Experts recommend that the firefighter should start looking for a different fire department due to the financial risks associated with staying in a poorly managed pension system [4]