Road to the TA 20-02
 

The MEC is pushing the 5% return of the MBCBP and in their latest update used it to estimate 16% DC retirement, which amounts to around 30-40% FAE. IMO, a 5% return over a long career is a very poor return that yields essentially 0% after inflation. A conservative 60/40 portfolio has averages 9% since 1928 and 6% after inflation. Wanted to see what others thought about the latest update.https://uploads.tapatalk-cdn.com/202...484b581012.jpg

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I'd rather them take an ultra conservative return vs the 18+% the companies used in our old DB plans. If the returns are better than 5%, it's just gravy.

Gravy that goes on someone else's potatoes... My money, my name, my account, my control. I don't want my retirement dollars confiscated and hamstrung with a 5% return, where the fund manager keeps my gravy.

Upon proofreading, the over usage of the word "my" sounds a bit selfish, but I don't care, it is MY retirement.

Then Opt out. Not sure what part on OPTIONAL people are not getting. Now if it turns out it is not optional the vote no. I don't know why we are trying to make this a hard game. My $.02

They are selling it as optional, but at the moment it would be mandatory for all, unless the optional part is approved by the IRS. But they havent asked the IRS that question yet...

That's my biggest beef. I can say paying income taxes is optional, but then you'd have to come visit me in prison.

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Yaaa....about that optional. Might want to read the fine print on "optional."

The first roadshow they said a drawback is that the MBCBP would NOT be optional. All in or all out due to IRS rules. Now they’re saying it’s optional but not explaining what’s changed to make it so.

So basically a lot of us think they’re full of it, and want to get it passed then say “whoops! We can’t make it optional. Guess you’re in after all.”

MBCBP .....No

MBCBP with plus you...DEFINITELY NO!

You’ve got to pay taxes on it sometime, just give it to me and let me worry about it. It’s kind of like the year I was doing taxes and discovered I couldn’t contribute to a Roth IRA anymore. Called my financial guy to complain, his response, ‘yeah that’s a tough problem to have making too much money.....’