Originally Posted by scagnt83
It would have been more efficient to just give the $70mm in "costs" directly to the enrollees.
This never made sense to me. Why not just expand eligibility to an existing program that has a proven track record of being financially viable? Like the Thrift Savings Program (TSP). It only offers ultra low-cost index options, and is a very successful program for federal workers.
The reason why is that this program ONLY put them in US Treasuries. If I remember correctly, they created a special Bond Issue just for this program. They saw it as a way to pad the coffers of the Treasury in the guise of being "pro-little guy".
The real disgusting thing is, if an Advisor put most peoples IRA into all Treasury Bonds, they would be seriously risking a breach of Fiduciary Duty. Uncle Sam can do it and its fine.
* I think Justin accidentaly posted this to the wrong forum. Maybe a Moderator can move it to the Retirement Forum.
Correct, miss-post to the wrong subforum. And I agree it was not about helping the little guy as it was a backdoor bail out of the treasury. Don't tho k this won't happen again. Next it could be a mandatory % of any qualified fund be invested in treasuries...