No. of Recommendations: 17
Remind me to sell you retirement products, since you seem to be okay with a rate of return that doesn't come close to keeping up with inflation.
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.
But considering the average yield of 30 year Treasury Notes is a little more than 3.5%...you're paying at least 2 points for your "Certainty". Which means that your 2+ points are going to fund somebody else's retirement, which is what I said.
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.
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.
