Originally Posted by
interceptorpilo
The fact that the OP has the withdrawal rate of MMIC at 4% and the annuity from the “other plan” at 6% makes me think there is definitely a hidden agenda on the OP’s part. At least it appears that way. Since the other plan is not inheritable then a fair comparison would be to give a reasonable return on the money say 8% for MMIC and draw it down to zero at some age say 85. I think that comparison would show the MMIC wildly better for almost everybody.
No black helicopters here. I explained my defaults in another post, which I'll quote here:
Originally Posted by
PilotWombat
I did that because most people generally consider the default for retirement investments to be the 4% withdrawal rule. And the union has stated that the default (but not the only option) for the MBCBP upon retirement is to buy an annuity with it. As best I can find, immediate payment fixed lifetime annuities generally pay about 5-7% of the purchase price per year, hence 6%. If you have better knowledge, by all means, show me some data that allows us all to make a better estimate.
My main goal is give people accurate information. If I have any agenda, it's to counter the very vocal people on this forum that are saying "MMIC" is the only and best way, and the MBCBP is worthless. It is not worthless and provides a lot of value to a lot of people. Maybe taking that money cash will work better for you, though. As with most investments, it is mostly dependent on your time horizon.