The Problem with CPP Investments
A well-researched piece of journalism on the history of our Canada Pension Plan and how it is currently being managed.
TL; DW: For a while, we had a passively managed CPP fund. Then we switched to an actively managed fund which currently costs us over a billion dollars to manage each year. The rational for this switch is that an actively managed fund can outperform a passively managed fund. Has it? (No, it has not)
Be very careful. The next step is to eliminate pensions altogether and press the onus onto the individual with bullshit like our 401ks.
At that point. You're boned. Most people wont be able to retire at all. You'll become a society of wage slaves like us.
I'm being 100% serious here. Protect your pensions. Protect your Healthcare. With bloodshed if necessary. Because the avaricious ghouls that ruined the US are working to do the same to you.
In the video, the creator is very clear that this is not an argument to remove the pension fund and he specifically addresses those concerns (twice, at the beginning and end of the video).
Wanting good, responsible management of something most of us pay into is not a bad thing. This should not be a partisan issue (which the creator also says)
Yeah, I’m very cautious about any criticism of CPP, even if it’s right. A lot of entities (especially Alberta) seem to be trying to kill it right now.
I think the solution is having these agencies be accountable to the accountability metrics that they set up.
Normalizing mismanagement seems short-sighted to me and ultimately only supports the argument that government is "useless" or "broken".
That extra billion going towards healthcare or education or even back into the pension fund could do a world of good.
It's the same thing with your personal finances. All the financial salespeople advisors will tell you to buy actively managed funds because they get paid more can beat the market.
I fired my first advisor after learning about passive investing and she literally said, "you can't beat the market if you are the market." I resisted the urge to request a guarantee that that would happen, but I did track the difference between my actual investments and if I stayed with an actively managed fund with similar holdings. Unsurprisingly, I'm tens of thousands richer today than I would've been.
If the market is up or down, fund managers are still going to take their 2.whatever% cut. I much prefer the 0.2% I pay.