Reply to Would you choose bond or "real 3%" investment if you were me?

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Reply to "Would you choose bond or "real 3%" investment if you were me?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I can't believe no one has asked what magical investment offers a guaranteed 3% real return and what risks/catches go along with it.[/quote]

OP here, so it is not Bernie Maddoff option 😄. It is the retirement fund managed by our World Bank colleagues. Not sure how they manage to guarantee that return but basically it replaces the old pension model (which if you think about it was also based on pension managers thinking they could get an average guaranteed return).

There is a cap in terms of how much money we can put into the real 3% option (11% of our net salary)[/quote]

the cap of 11% of [net] salary is not limited to the 3% option only.  the 11% (Bank contributed a matching 10%) is the current maximum we can contribute to our cash benefit component in the pension.  therefore, whatever you chose impacts up to 21% of your salary (your 11% plus the 10% contribution from the Bank).  the defined benefit is not impacted by your investment decisions.[/quote]

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