Bond yields aren’t comparable to property cash flow; especially leveraged property. Additionally they are highly susceptible to rates and capital risks. It’s a

Bond yields aren’t comparable to property cash flow; especially leveraged property. Additionally they are highly susceptible to rates and capital risks. It’s also technically a lot harder for most people to juggle a 401k annuity structure. I did however discuss structuring your own annuity earlier. Bonds are much lower than 5% typically for anything other than the worst credit possible. For better than 5% you need to be a relatively active trader, and manage the cash disposition well. Owning property is typically less risk and less effort for the average person, and most they can offload to a property manager. They can of course hire a financial advisor. Most people having had a rental at some point understand the concepts a lot better than bond trading and investing writ large. They also can’t convert their basis in their home appreciation into their 401k, and my point was on basis rolling of property capital gains and how to convert your family home appreciation into a tax deferred vehicle with cashflow. Personally, I agree with you; I would do a self managed annuity structure and hire an advisor for my later life when I may not be able to manage it. However, I’m just explaining the typical thinking. And the capital appreciation basis roll is a real problem for retirees whose home appreciated over their lives. I think you misunderstand what happened in the 80’s - pensions were raided and they were stolen. In the 90’s the defense was to not offer them any more. There do exist some pensions, mostly governmental, and some rare corporate pensions that escaped raiding, but the survival of private pensions wasn’t great even for those that had them. Social security is below poverty rates, and is not a retirement plan but supplemental. It was designed with the private pension system existing in mind. I’m fine with expanding social security by lifting income caps and other fixes, including a sovereign wealth fund. The status quo isn’t tenable.