Kind of getting into the weeds here, but I’m using the term, perpetual to express the fact that a financial management company will manage our money to generate a given rate of return, forever or until we terminate it. That’s all I’m getting at there, I realize we won’t be receiving a payment from this plan, per se.
So, now that we have that cleared up..... :-)
The fact that large entities such as corporations and governments use these just means that a lot of companies and their employees are probably paying too much in management fees and getting crappy returns on their money. I say that a bit tongue in cheek, because I can’t generalize 23,000 of these plans into one, but I think you get my point.
While my preference is to self manage all of my funds, if the vote is in favor of this, then so be it. I’m not opposed to this idea with a few tweaks. For instance, people from age 21-50 have their funds allocated into a more aggressive, mostly equities basket. A simple passively managed index would work. 50-60, the funds are moved into a moderate growth vehicle, part bonds, part equities. Age 60-65 the money is moved into a conservative bucket which is almost all fixed income securities such as high grade bonds. It sounds like these plans allow the flexibility to specify things like this, I’ll ask if it’s possible.