DB plans vs. DC plans

Defined Benefit or Defined Contribution, which is better for the retiree? The government seems to think that DC plans are better. They are moving away from building up DB plans such as the Canada Pension plan and the Old Age Security plan to new plans, which are DC plans. Perhaps Harper should listen to the following published on the Pensions and Benefits website, in May

John Liu of New York City and Thomas DiNapoli of New York state explained that “The traditional pension — also known as the defined benefit retirement plan — has been under attack in this country since at least 1980,” Mr. Liu said May 7. Mr. Liu, who oversees the five pension funds in the $122 billion New York City Retirement Systems, is also a proponent of offering public defined benefit plans to private-sector workers.

Much of the attacks on public pension funds are about costs, Mr. Liu said. But research by the city comptroller's office, titled “A Better Bang for the Buck,” shows the DB model is more cost effective than the defined contribution model, Mr. Liu said.

Still, he said, there is room to improve costs by changing the management of the five DB plans. Mr. Liu also has proposed the New York City Personal Retirement Account, which would effectively extend the city's pension plans to private employers. The National Conference on Public Employee Retirement Systems is touting a similar concept called Secure Choice Pension.

Both proposals would pool employee and employer contributions into a professionally managed retirement fund that leverages economies of scale to lower costs for employers and offers portability to workers, Mr. Liu said.

“We believe ideas like this will go a long way to keeping everyone out of the rain when it comes time for retirement,” Mr. Liu concluded.

On May 8, Mr. DiNapoli continued his criticism of 401(k) plans being offered as options to public employees, calling the DC option “woefully inadequate” for people who rely on them as a primary source of retirement income.

Mr. DiNapoli repeated his criticism of “anti-pension advocates” who try to blame public pension plans for damaging state and local budgets and for handing out allegedly inflated payments.  “Another well-worn line of attack on public pension funds — an argument that particularly disturbs me — is that they are bloated with retirees making six-figure pensions,” he said. “The vast majority of retirees in our system are receiving modest benefits.”

History Exam - 20 Questions (I only got 16 -)

Thanks to Derwyn for this.  I think his score was higher than mine.

NO Cheating- don't look at the answers until you take the test!!!! History Exam... Everyone over 40 should have a pretty easy time  at this exam. If you are under 40 you can claim a handicap. This is a  History Exam  for those who don't mind seeing how much they really  know *** Get paper & pencil & number from 1 to 20.   ****Write the letter of each answer & score at the end. Then before you pass this test on, put your score in the subject line. Everyone HAVE FUN!!!!     1. In the 1940s, where were automobile headlight dimmer switches located? a. On the floor shift knob. b. On the floor board, to the left of the  clutch.... c. Next to the horn. 2. The bottle top of a Royal Crown Cola bottle had holes in it.. For what was it used? a. Capture lightning bugs. b. To sprinkle clothes before ironing. c. Large salt shaker. 3. Why was having milk delivered a problem in northern winters? a. Cows got cold and wouldn't produce milk. b. Ice on highways forced delivery by dog sled. c... Milkmen left deliveries outside of front doors and milk would freeze, expanding and pushing up the cardboard  bottle top. 4. What was the popular chewing gum  named  for a game of chance? a.. Blackjack b. Gin c. Craps 5. What method did women use to look as if they were wearing stockings when none were available due to rationing during WW II. a. Suntan b. Leg painting c. Wearing slacks 6. What postwar car turned automotive design on its ear when you couldn't tell whether it was coming or going? a. Studebaker b. Nash Metro c. Tucker 7. Which was a popular candy when you were a kid? a . Strips of dried peanut butter. b. Chocolate licorice bars. c. Wax coke-shaped bottles with coloured sugar water inside. 8. How was Butch wax used? a. To stiffen a flat-top haircut so it stood up. b. To make floors shiny and prevent scuffing.. c On the wheels of roller skates to prevent rust. 9. Before inline skates, how did you keep your roller skates attached to your shoes? a. With clamps, tightened by a skate key. b. Woven straps that crossed the foot. c. Long pieces of twine. 10. As a kid, what was considered the best way to reach a decision? a. Consider all the facts. b. Ask Mom. c. Eeny-meeny-miney-MO. 11. What was the most dreaded disease in the 1940s and 1950s? a. Smallpox b. AIDS c. Polio 12. 'I'll be down to get you in a ________, Honey' a. SUV b. Taxi c. Streetcar 13. What was the name of Caroline Kennedy's pony? a. Old Blue b. Paint c Macaroni 14. What was a Duck-an d-Cover Drill? a. Part of the game of hide and seek. b. What you did when your  Mom called you in to do chores. c. Hiding under your desk, and covering your head with your arms in an A-bomb drill.    15 . What was the name of the Indian Princess in the Howdy Doody Show? a. Princess Summerfallwinterspring b. Princess Sacajawea c Princess Moonshadow 16. What did all the really savvy students do when mimeographed tests were handed out in school? a. Immediately sniffed the purple ink, as this was believed to get you high. b. Made paper airplanes to see who could sail theirs out the window. c. Wrote another pupil's name on the top, to avoid their failure. 17. Why did your Mom shop in stores that gave Green Stamps with purchases? a. To keep you out of mischief by licking the backs, which tasted like bubble gum. b. They could be put in special books and redeemed for various household items. c. They were given to the kids to be used as stick-on tattoos. 18. Praise the Lord , & pass the _________? a.. Meatballs b. Dames c. Ammunition 19. What was the name of the singing group that made the song 'Cabdriver' a hit? a. The Ink Spots b.. The Supremes c. The  Esquires 20. Who left his heart in San Francisco ? a. Tony Bennett b. Xavier Cugat c. George Gershwin ---------------------------- ------------------------------- ANSWERS 1. (b) On the floor, to the left of the clutch. Hand controls, popular in   Europe  , took till the late '60's  to catch on. 2. (b) To sprinkle clothes before ironing.. Who had a steam iron? 3. (c) Cold weather caused  the milk to freeze and expand, popping the bottle top... 4 . (a) Blackjack Gum. 5. (b) Special makeup was applied, followed by drawing a seam down the back of the leg with eyebrow pencil. 6. (a) 1946 Studebaker. 7. (c) Wax coke bottles containing super-sweet coloured water. 8. (a) Wax for your flat top (butch) haircut.   9. (a) With clamps , tightened by a skate key, 10. (c) Eeny-meeny-miney-mo. 11. (c) Polio. In beginning of August, swimming pools were closed, movies and other public gathering places were closed to try to prevent spread of the disease. 12. (b) Taxi , Better be ready by half-past eight! 13. (c) Macaroni 14. (c) Hiding under your desk, and covering your head with your arms in an A-bomb drill. 15. (a) Princess Summerfallwinterspring. She was another puppet. 16.(a) Immediately sniffed the purple ink to get a high. 17. (b) Put in a special stamp book, they could be traded for household items at the Green Stamp store. 18. (c) Ammunition, and we'll all be free. 19. (a) The widely famous 50's group: The Inkspots.   20. (a) Tony Bennett, and he sounds just as good today.  SCORING 17- 20 correct   You are older than dirt, and obviously gifted with mental abilities. Now if you could only find your glasses,  which you wore on a shoestring around your neck. Definitely someone who should share your wisdom! 12 -16 correct Not quite dirt yet, but you're getting there.   0 -11 correct You are not old enough to share the wisdom of your experiences.

How to find spare change

In a previous post I gave the example of a 30 year old who needed about $500,000 for retirement assuming she did not have any company pension. So the question that comes up is how do you find $400 a month to save?

Here are some ideas that should not hurt a young family's quality of life and by following some of these steps extra money can be found

Do you drink coffee or tea daily? Do you buy it from a place like Starbucks or a boutique coffee shop? It is easy to spend $5 a day on coffee or tea when making it at home would cost more than 80% less. Saving $4 a day is $120 per month.

Land Line Phone: If everyone in your family has a cell phone, you may not have a need for a land line anymore. That could be a nice savings each month.

You can look into reducing premiums on your insurance policies by increasing your deductibles. Warning: Only consider this if both: 

You think the premium savings will be greater than the added risk of a higher deductible
You have the financial wherewithal to cover a higher deductible if you need to take a claim

Free Checking: Have a checking account that either is Free Checking or has no minimum balance requirement to eliminate potential fee

Books: I used to not be a big reader but in the past two years have started reading at least one book per month. Not to stereotype but I know many people who are avid readers as well. It wasn’t until I had spent a couple hundred dollars on books over the course of a few months that I realized there are things called libraries that have books for free.


Phone & Text Bills: Google Voice is free and allows you to make calls as well as send text messages for free. Simply search YouTube "how to use Google Voice" and there will be short, under 5 minute videos showing you exactly what to do 

Cooking at home vs. eating out at a restaurant. Eating out at a restaurant just once or twice less each month can be a big money saver.

ATM Fees: This is not a big expense but I hate ATM fees. I’ve paid as much as $3.50 just to get access to my money. Most banks have a smartphone app that will tell you where the closest no-fee ATM is to you.

A follow up post to Let the Band play On

The following was posted by one of Bob's students along with the post there was a link to a story in the local paper. Thanks to Wayne for sharing.

There will be a tribute concert  for Bob LaBonte, which will take place Oct. 24 at Frank Hurt Secondary (77 Avenue and 139 Street). Doors open at 6 pm., concert starts at 7 pm.

This man will truly be missed. Bob LaBonte was my band teacher 1974-1976. He had us at West Whalley as his first full time class right out of University, poor guy!!!!! Bob was an amazing educator and always had time for his students whether during school hours or after. Todays teachers could take a lesson. My award in Grade 10 as "Most Outstanding Musician", in the Stage Band had more to do with Bobs talent as a music teacher than my musical talent. I took his class in grade 9 because there was no room left in any other electives except electricity. I had some music in the past but had never played the trumpet. I went from a beginner to playing in the Stage band by the middle of the first year. Thank you Bob. The article echos many of my sentiments. RIP Mr. LaBonte, wherever you are I hope you're Jamming!!


For the story Wayne is talking about go here:  http://www.surreyleader.com/news/174800921.html