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The fund is based on 10Y treasury bonds which have significantly underperformed the S&P historically. First 3 years, you get a 6% guaranteed return. The remaind
by lisplist 3y ago
The fund is based on 10Y treasury bonds which have significantly underperformed the S&P historically. First 3 years, you get a 6% guaranteed return. The remainder, you get only 3% guaranteed. For reference, my HYSA yields 4% a year.
- cool_dude85 3y agoPresumably IBM invests this money and pockets the difference. What a scheme - your employee retirement plan is actually a profit center. Fucked up that this could be allowed to happen.
- sidewndr46 3y agoThe financialization of IBM is now complete, as they attempt to make as money off their own employees as possible.
- pinewurst 3y agoPlus most importantly it's non-portable. You're dependent on their good will (hah!) for the ability to retrieve it from them in the future at whatever (partial) rate they decide they can get away with. I thought they were criminals for going to lump sum match. This is net level stuff...
- temp_praneshp 3y agoTheir email calls it immediately vested + portable. Why/how would it be non-portable?
- celestialcheese 3y agoIn 3 years, if IBMs fund is paying 3%, your HYSA is going to be the same or less. HYSA's are just a treasury fund minus a few bips
- lisplist 3y agoFair, just giving a point of reference