Do you know how long it takes the L.A. County Employee Retirement Association to save 100 Million Dollars, the minimum cost of such a hotel? Do you? Imagine how many court cases and clerk hours worked by the Employees to actually save 100 Million Dollars? So what in the world are these hard working L.A. County Employees doing owning the prestigious St. Regis Hotel on Kauai in Hawaii. First of all, Hawaii is nowhere near L.A. And second of all, Hawaii is nowhere near L.A.
The story goes something like this. I must first tell you that I worked 10 years as an investment advisor in real estate for these large pension funds like L.A. County Employee Retirement Fund. So back to the story. An Investment Advisor (that was me), in this case from Connecticut, convinces the Pension Fund Investment Board that it would be a good idea that they buy a 5-Star Hotel in Hawaii. Why, I can not tell you. I could think of many reasons then, but now I honestly can not think of one good reason.
The real reason is that the Investment Advisors for L.A. County Employees are making $100 Million annually (check annual report) on such unconscious, super-risky investments; like foreign currencies and swap agreements. Do you remember how many days or hours you thought the L.A. County Employees had to work to save $100M – well it goes right out the door…annually, to people that most of the L.A. County Employees have never met.
These stories are happening all over America. And in the end, as we are learning, the retirement dollars are not going back into our own pockets. That is stupid. I am personally guilty of it in my own 401K account. These savings are completely disconnected from our economic reality. What I am trying to say is that in my opinion, The L.A. County Employees, as do I, have much more important business to conduct at home, like taking care of ourselves and our own economy with our hard-earned savings.
There needs to be a conscious shift in the investments and assets that our pension funds, 401Ks, IRAs and good old-fashion savings, own in our economy. The simple reason: for the direct benefit of the hard working American – You! This shift will not only save a flailing economy, it will lead it towards unknown prosperity. Remember, these unconscious pension fund investment schemes have been going on since before the Great Depression!
Imagine the possibilities. I envision that local investments lead by these pension funds and individual retirement accounts will create the next Economic Boom! The institutional investments will include local renewable energy, local real estate, and local entrepreneurs; three simple, secure and diversified investment allocations. Imagine 100 Million Dollars invested in L.A. County renewable energy, local entrepreneurs and its real estate; instead of 3,000 miles across the Pacific Ocean in a 5-Star Hotel in Hawaii. These local investments will immediately generate true currency back into the people’s hands that simply created it in the first place . Otherwise known as consciously investing in oneself and one’s economy.