"Warshaw argues that money has been mismanaged over the last two decades, estimating that over 650 Wall Street bankers have been paid over $11 billion in fees, leading to taxpayers paying an estimated $59.1 billion in higher property and income taxes."
"Warshaw's solution is to fire the bankers, move pension assets out of private equity and hedge funds, and bring them into a diversified set of practically free, low-cost index funds."
"This cycle represents the largest transfer of wealth that no one knows anything about, according to Warshaw."
"The Nevada Public Employees' Retirement System's strategy of investing in low-cost, low-risk funds and doing nothing for years has matched or outperformed other states with more complex investment strategies."
Drew Warshaw has left his position at an affordable housing nonprofit to run for New York State comptroller, a powerful role overseeing a $298 billion pension fund. He claims that mismanagement has led to excessive fees for Wall Street bankers and underperformance, costing taxpayers $59.1 billion in higher taxes. Warshaw proposes to replace these bankers with low-cost index funds, a strategy that has proven successful in other states, aiming to enhance the financial security of public employees.
#new-york-state-comptroller #pension-fund-management #investment-strategy #public-employees #financial-reform
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