Friday, February 20, 2015

Mark Thoma — 'Investment Charges When Mexico Privatized Social Security'

Tim Taylor: "As Hastings explains: "Fund managers charged an average load (a fee taken as a share of account contributions at the time of contribution) of 23 percent and an annual fee on assets under management of 0.63 percent, implying that a 100-peso deposit earning a 5 percent annual real return would only be worth 95.4 pesos after five years." ...
Of course, countries are different and no firm conclusions can be drawn based on comparisons with Mexico. YMMV.

Economist’s View
'Investment Charges When Mexico Privatized Social Security'
Mark Thoma | Professor of Economics, University of Oregon

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