Originally Posted by
TomAce
Thank you for sharing this. The MBCBP is garbage. Far too much of our money would have gone into it with low returns. If they insist on creating a similar setup, we have to demand that the company is not the fiduciary.
The MBCBP must make payments to those in retirement, thus the asset mix of 55% equities /45% bonds is not unreasonable. Rather it’s prudent.
However, even the 6.5% goal is above current, forward looking, market forecasts by major investment firms we utilize (Vanguard, Fidelity & Schwab).
If the MBCBP is the way forward,then the solution is to use a lower estimated return (perhaps 5.5%) and require the company to give a larger annual percentage contribution.
11% is insufficient. Fix it NOW! Not in the “next contract”.
In Transparency, Integrity & Unity (for Everyone),
DLax
ps. I’d prefer Everyone had a choice - even future new hires.