Molly Janczyk: Choose defined benefit AND invest

From Molly Janczyk, January 17, 2007

Subject: RE: Fw: Co-sponsor Request; Alternative Retirement Plans for Teachers and School Employees

This bill says it provides options, which is true. However, young educators without experience may be 'led' to believe this is the better choice when in fact no educator can save enough to pay for their retirement let alone their health care which averages out to be $240,000 per retiree just for health care.

ALWAYS CHOOSE DEFINED BENEFIT GUARANTEED BY THE STATE TO PROVIDE MONTHLY PENSION CHECKS AND INVEST IN OTHER OPTIONS AS WELL!!!!!!!

Do not be misled to believe that dollars saved can ever add up to what you would receive in pension checks. It can look good on paper but life and market trends do not stay static, and drops and challenges influence those savings. Everyone is told on paper they can save up to huge figures but no market or investment is guaranteed to produce at the rates they provide you.

My annuity didn't come close as the market dropped far below what my portfolio was based on. I am glad to have it but lost 30% in the downturn and will never recoup what I would have had if that crisis did not occur. Had I relied on that for my retirement and health care, I would not have survived.

Invest: YES! But also sign up for defined benefit which is guaranteed by the State for your monthly pension checks.