Question

Exercise: Value Conflicts and Assumptions

In each of the following passages, identify the value assumption and value conflict. Read each passage below. Type your response in the textbox beneath each passage. When you are satisfied with your answer, click Save.

"The best way to preserve the pension fund is to invest it conservatively. It won't grow as much as it would through a more aggressive investment strategy. But at least we won't have to wonder about its solvency down the road."

Someone knows how to answer this question? this is from "Developing critical thinking" class and I have to answer based on the value assumption and value conflict

Answer 1

The pension in the US is the amount a person gets on his retirement. It is the amount that is pooled during his service term in the pension fund, at present in the US approximately 50000 public retirement systems are in force.

Once the person is retired it is the time for enjoyment. No running to the office in time, relax and spend the life that was a wish when somebody is in his active office life. After retirement a lump sum amount comes as retirement benefit that sum looks quite large and attractive.

During active office life there are many wishes that were not fulfilled and post-retirement is the period to fulfill those wishes but one thing every retire person should know the body strength will reduce, there will be no monthly hefty pay, whatever is in hand has to be spent till the last breath. No one can predict life.

Looking at the present market trend people can guess something, but that will be a guess, the predictions of the market can go extremely bad or good depends on the situation. So invest where you have peace of mind and no fear.

Investing aggressively would look a good strategy but it cannot remain the same as the market is volatile. The present example is a disaster like pandemic COVID19 risk is always there in investing, but the one who invests intelligently, looking at the safety of his funds and future is the intelligent person because he knows the fund's that is insured will not get lost, but the sum that earns higher amount with risk is always a risky investment.

Aggressive investment can lead to disaster and loss of funds if not kept track of it, but the sum that provides peace of mind is a true investment and one does not have to wonder about its solvency down the road.