Originally Posted by olly

I have said this many times on this forum.

For those that want to freeze or trade our Defined Benefit Plan- google immediate annuity. Click on any of the results. Enter how much you'd like to receive in retirement, and your age.

The result will be a 7 figure number ~ $1.7M depending on your age.

How many of you have a 401k portfolio of that magnitude?
You would need well north of 25% in the B fund for more than 20 years to achieve the NPV required to replace that annuitized income.

And that assumes constant growth- averaging 7-8%, for over 20 years. No prolonged bear markets- no years of measly growth. How many of you have avoided all market risk- every year, for 20 years. Maybe if you were in cash, but then you didn't have the 7-8% compounding required- so you'd need even more contribution if you were risk averse.

An all B fund retirement puts all the market risk, systemic risk, and financial management risk on the pilot.

I'm sure you've heard the old saying- "never fly with doctors or invest with pilots"