The pension of a fire department is sub -financed for $ 1 billion. Dave Ramsey instantly believes that he is in Illinois, on the left, he is actually in Texas

When the expert in personal finance Dave Ramsey I heard about a fire department with a pension that has more than $ 1 billion under subfinence, his first assumption was Illinois. “Sounds like Illinois or Chicago,” he said in a recent “The Ramsey Show” episode. But when co-elanfitrion Ken Coleman He told him that the firefighter was actually writing from Texas, Ramsey was stunned: “Where in Texas is something so bad?”

A firefighter named Brett had written to share his concerns. He said he loves his job, but he is beginning to question if the permanence is worth it, given the financial statement of his department. “The city takes 13% of my payment check for my pension, and they coincide with those funds,” Brett explained. “I have no voice about how money is managed or uses.”

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To finish the letter, Brett asked: “I had always dreamed of making my career here, but with the pension and some smaller problems, I wonder if I am currently a passenger in a sunken ship.” He asked the program: “Is a poorly managed pension a sufficient reason to consider?”

Coleman said he would be inclined to leave if the department feels like a ship that sinks. Ramsey agreed, adding that the situation is not only worrying, it is financially irresponsible to stay.

“It is not the pension that bothers me. It is 13% of its income that makes you put in something that is decreasing. That worries me,” Ramsey said. “To maintain this work, you must carry 13% of its income in the middle of the floor and burn it every week.”

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He stressed that if Brett could invest that same 13% in a 401 solid (K), he could eventually become a millionaire. Instead, he is forced to contribute to something that is not even seen viable in the long term.

“Billions insufficient? Oof,” Ramsey said. “It feels like it was a news. That’s a lot,” Coleman added.

Ramsey and Coleman concluded that Brett should probably start looking for a different department. While it is painful to get away from a dream job, permanence could result in long -term financial damage. “You probably move to a different fire department, my man. That is the thing,” Ramsey said.