[sgtyork]

Kind of disappointed that you felt you need to school me.

Your short course in actuarial calculation does not change the fact that you did not list the value of that program on a present (paycheck) basis. I am quite certain that an Actuary could calculate that value taking mortality, departure from education employment. And I am also certain that for teachers who retire at ages between 55 and 65 (http://wiki.answers.com/Q/What_is_the_average_age_of_retirement_for_a_teacher) the value is considerable.

A rule of thumb I read recently for retirement preparation is 20-30 percent of income.

[muawiyah]

Present value is frequently misused by propagandists to come up with immensely large numbers without meaning.

That's why I left it out.

The simpler term ~ that may get you to the same place ~ is called "anticipated earnings" used only with reference to the investment vehicle ~ and that may well be counseled by law over periods of time ~ e.g. no use of investments in real estate through some periods, and no use of stocks in another, and no use of bond rates in another ~ I've been around long enough to see just everything prohibited, then rehabilitated.

Frankly, using a single discount factor to bring in an average interest rate over the whole period of performance automatically disallows consideration of variations that may or may not occur in the future for short periods of time. I kind of like to keep my options open.

BTW, the federales don't use present value analysis for anything but initial land acquisition ~ USPS does it on EVERY rental, lease, new construction or rehabilitation project BTW ~ and I did THOUSANDS of them over the years. Lots of fun.

When you get right down to it the comparison of an individual retirement fund with a group fund the size of that of federal retirees is pret' near impossible ~ for one thing the federales NEVER suffer a mass die-off ~ but the individual does do that from time to time, plus his his heirs and assigns get the residual (along with the tax people).

I think that is a question better left to an organization like FIDELITY anyway.

[muawiyah]

NOTE: That wasn't a lecture ~ you had an implicit question ~ to wit: How much would it cost to have a private individual retirement as lucrative as that of the teachers.

The answer is, of course, A LOT!!!! All individual plans cost more because of the risk of not dying soon enough!

[muawiyah]

NOTE: That wasn't a lecture ~ you had an implicit question ~ to wit: How much would it cost to have a private individual retirement as lucrative as that of the teachers.

The answer is, of course, A LOT!!!! All individual plans cost more because of the risk of not dying soon enough!