Mandatory pension funds: What are your thoughts?

As far as I can tell, inflation from January 2015 to January 2021 sat at 3%. That wasn't an annual rate—that was the total cumulative amount. Compare that to those GDP figures mentioned in the previous post.

Whether A or C (or even B) ends up looking better a year from now... well, we'll find out in a year.😉

Here’s the current breakdown for the mandatory pension fund units:

Nov 17 $89 - Goldman Sachs -B
Nov 17 $98 - Bank of America -B
Nov 17 $87 - Citigroup - B
Nov 17 $94 - Wells Fargo

I guess this might imply that Bank of America is actually the top performer among the funds, right?

If you’ve been contributing since the fund was first established, then yes. Otherwise, it all depends on when you actually started putting money in. Theoretically, if the last two years were its worst period, someone who started investing eighteen months ago—like your employer did—would be looking at the absolute bottom of the market for their specific holdings.

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Walter Thomas18 said:If you’ve been contributing since the fund was first established, then yes. Otherwise, it all depends on when you actually started putting money in. Theoretically, if the last two years were its worst period, someone who started investing eighteen months ago—like your employer did—would be looking at the absolute bottom of the market for their specific holdings.

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So, how am I supposed to figure out which fund is actually worth picking?
And honestly, is it even worth bothering to switch funds at all?
I've been sitting in Goldman Sachs for about 8 years now.

There is data available regarding growth on a daily, monthly, yearly, and lifetime basis.
Take a look at which fund is listed here.

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Mark Sanders66 said:So, how am I supposed to figure out which fund is actually worth picking?
And honestly, is it even worth bothering to switch funds at all?
I've been sitting in Goldman Sachs for about 8 years now.

The truth is, you can almost never make a definitive call on which fund will outperform the rest, because past performance is absolutely zero indicator of what’s coming next.

I've been tracking Goldman Sachs since day one, mostly because I had a massive crush on the girl who was recruiting for them back then.
Right after those Goldman Sachs funds kicked off, they immediately started throwing a fit about performance fees. They demanded a flat management fee regardless of whether they actually made any money or not. Pretty soon, the government folded, and those funds turned into nothing more than a glorified cronyist club. That’s exactly when everything went south. As soon as they killed off the performance incentives, I packed up and moved for free to... Bank of America funds have been the absolute gold standard since day one. Seriously, they’ve been killing it from the start and haven't looked back. Best in the game, hands down..

I can't even remember exactly which year it was, but I know for a fact I had about... $50So, I jumped on that one short-term loophole when they tweaked the laws and pulled my money out of the second pillar—totally free, obviously. Now, all that 20% is flowing right back into Dow Chemical, and honestly? I couldn't care less about those pathetic little losing funds anymore.

briskcanyon12 said:The truth is, you can almost never make a definitive call on which fund will outperform the rest, because past performance is absolutely zero indicator of what’s coming next.

well, sure, you can make an exact decision, it’s just that nobody ever bothered to explain the mechanics to me, so I guess I finally figured it out for myself today

So, here's the deal: the only thing that actually matters is the net asset value per unit, which you then multiply by however many units you happen to be holding in your account

By switching over to Category A of the fund, I ended up actually shrinking my total account balance by several thousand dollars simply because the unit value is:

Goldman Sachs A = 161 x 100 =$5.25
Goldman Sachs B = 262 x 100 =$8.75

You didn't actually lose anything; based on what you put in ($8.75), you just ended up with a bigger slice of Category A. It's the same amount of money, you just got more units because the price per share in Category A is lower than Category B.