The “Slap in the Face Award” (SITFA) this week is for all those who think they have great retirement plans.
Here are the particulars about what I think is the single best defined benefit retirement plan anywhere. Wait ’till you hear this…
In this plan the employer matches 100% of your contribution, not a measly 2% or 3%.
[ad#Google Adsense 336×280-IA]Every employee is covered; part-timers and temps included.
The account value does not go up and down with stocks, or even bonds for that matter.
Once you start to receive benefits, it will provide payouts for life with absolutely no reduction, ever.
Administrative expenses are some of the lowest in the industry.
It has automatic hands-off operation – one click and you’re done, forever.
There is even a provision for your spouse and children if something happens to you.
The payouts favor the working guy, not the executives in the mix, as most plans do.
And it’s really cheap. No more than a 7.5% contribution from anyone.
Every employee can take it to any job and still participate. It is 100% portable.
You may have already figured it out…
Social Security.
With some honest, frank talk from our elected officials – which is always in short supply – and a little tweaking by Washington, this could be the best and the most liquid retirement plan in the world.
Of course, based on Washington’s history, none of the changes needed will ever happen. They are too politically costly. And that may be the biggest slap in the face.
That’s it… a nice short SITFA this week.
— Steve McDonald
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Source: Investment U