Quote:
Originally Posted by Slava
Well even if the rate of return is equal to what you can do yourself, there are a lot of other considerations aside from the inheritance issue. I mean yeah if I was 54 years old and diagnosed with a terminal illness then that might weigh heavily on my decision to take the commuted value, and there are going to be some cases. But to give blanket advice about a DB pension because you think you can earn a little more is just not responsible.
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It's not though. This isn't a retail advisor or mutual fund manager managing teacher pensions.
You probably know by now that I am a supporter of using long term low cost indexing strategies for the average retail investor. But this is not one of those cases. Said teacher, through their pension, has access to one of the most highly respected institutional money managers in the world who manages our province's public capital. The fees they pay and the strategies they employ aren't typically accessible to retail investors. Taking it out would be dumber than dumb.