Re: pension plan

[Christopher Pavsek <cpavsek@sfu.ca>]

To echo what someone else said here: 

I've discussed the defined benefit plan with my financial advisor. She was exceedingly clear in her belief that my chances for a secure retirement were far better with the DB plan than with our current plan, and I am someone who keeps his RRSP topped up to the limit (except during sabbatical) and have done so for a while. I was going to vote in favour (which I have done) in any case, but she suggested I’d be foolish to think I could easily beat the DB plan (even with her help), especially given how little I like to think about money or manage it and how little expertise I have in doing so.

I got a statement in the mail today from one of my US 401k accounts (this is the equivalent of an RRSP). All gains for the year have been wiped out with the current market downturn. It’s precisely that sort of risk and roller coaster ride that I don’t want to deal with. I know there is no way to entirely eliminate risk, even in the DB plan, but with the DB plan the risks would be far less than anything I am exposed to even with the careful balancing etc etc etc that I’ve been told to maintain in my accounts.

And after watching more than one relative live in fear of outliving their money, I can’t say that I am looking forward to either outliving my money or worrying about doing so.

Hence my support for the DB plan.

Just my 2 cents. Or rather, more like my 1.64 cents after the recent market drop...

Chris Pavsek