No. of Recommendations: 2
It's not intended to have high yield. It's intended to be a floor, so that no one - no one - ends up with less than a certain amount based on their investment choices.
You're the one asking me "Why am [I] complaining?". I'm well aware of how the program works.
No - you said it wasn't a retirement system. It is. It's like any defined benefit retirement system. The amount of your defined benefit is fixed, not subject to the ups and downs of the market.
When you go to your financial planner, Bob, does the conversation go like this:
"Hi, Bob - can you show me investment products that I can leverage that he me and those dudes over there [al points to some guys standing over there]?"
No, you don't.
Plus, this one comes with perks that don't show up in the IRR. It comes with: i) a lifetime disability benefit (which it sounds like you didn't need to use, but that "premium" was part of your contribution); ii) nonworking spousal benefit of up to 50% (which is enormous); iii) surviving minor benefits; and iv) disabled child benefits.
They *do* show up in the rate of return in the form of at least 2 points of cost, don't they? How many private plans have feature adds that cost more than the rate of return of the plan itself?
