Good thing they're not in charge of Social Security

Discussion in 'Stock Market' started by Luddly Neddite, May 14, 2012.

  1. Luddly Neddite
    Offline

    Luddly Neddite Diamond Member

    Joined:
    Sep 14, 2011
    Messages:
    62,057
    Thanks Received:
    9,521
    Trophy Points:
    2,040
    Ratings:
    +26,830
    Ina Drew, JPMorgan Chase CIO, Retires Amid Huge Trading Loss

    If the R's get their way, the average investor could lose every cent while the ultra wealthy hardly notice. Even though Drew is retiring in shame, this will not affect her lifestyle in any appreciable way.
     
    • Thank You! Thank You! x 1
  2. Truthmatters
    Offline

    Truthmatters BANNED

    Joined:
    May 10, 2007
    Messages:
    80,182
    Thanks Received:
    2,224
    Trophy Points:
    0
    Ratings:
    +2,242
    how anyone can suggest privatizing SS in light of the performance of the private sector has displayed is amzing
     
  3. Ernie S.
    Offline

    Ernie S. Diamond Member

    Joined:
    Nov 14, 2010
    Messages:
    34,367
    Thanks Received:
    8,043
    Trophy Points:
    1,340
    Location:
    Sweet Home Alabama
    Ratings:
    +13,814
    Consider someone who has averaged a 50K/year salary for 40 years and has saved 10%. (about the current total contribution to Social Security)
    He would currently, using a conservative rate of return of 5%, have roughly $660,000 saved. He could withdraw $31,000/year and never touch the principal.
    Now look at the poor schlep who stayed in the government controlled plan. He will pull down a bit under $20K/year and have no principal to leave his heirs and no savings for an emergency.
    Sure, the market goes up and down, but the long term trend is always up.
     
  4. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    61,405
    Thanks Received:
    12,680
    Trophy Points:
    2,180
    Location:
    The Big Bend via Riderville
    Ratings:
    +39,818
    This is ridiculous.
     
  5. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    61,405
    Thanks Received:
    12,680
    Trophy Points:
    2,180
    Location:
    The Big Bend via Riderville
    Ratings:
    +39,818
    Because the performance - the performance, not the funding - of almost every single pension fund has been better than SS over long periods of time.

    Why?

    Because over long periods of time, stocks do better than bonds.

    $100 million invested in bonds earning 4% is $460 million after 50 years. $100 million invested in a balanced portfolio of stocks and bonds earning 8% is $4.6 billion in 50 years.

    You will do much, much better investing in stocks over the next 10, 20, 50 years than investing in government bonds, which is what SS does.
     
  6. JakeStarkey
    Offline

    JakeStarkey Diamond Member Supporting Member

    Joined:
    Aug 10, 2009
    Messages:
    156,463
    Thanks Received:
    14,075
    Trophy Points:
    2,165
    Ratings:
    +44,339
    Many GOP are not for privatization of any part of SS.
     
  7. CrusaderFrank
    Offline

    CrusaderFrank Diamond Member

    Joined:
    May 20, 2009
    Messages:
    89,702
    Thanks Received:
    16,373
    Trophy Points:
    2,220
    Location:
    NYC
    Ratings:
    +49,523
    SocSecurity is already broke, Obama admitted it in August
     
  8. JakeStarkey
    Offline

    JakeStarkey Diamond Member Supporting Member

    Joined:
    Aug 10, 2009
    Messages:
    156,463
    Thanks Received:
    14,075
    Trophy Points:
    2,165
    Ratings:
    +44,339
    No, he did not. But your brain is broke, Frank.
     
  9. CrusaderFrank
    Offline

    CrusaderFrank Diamond Member

    Joined:
    May 20, 2009
    Messages:
    89,702
    Thanks Received:
    16,373
    Trophy Points:
    2,220
    Location:
    NYC
    Ratings:
    +49,523
    Broke is when the government has to borrow to pay current obligations to SS, there are no assets in the Trust Fund to sell.

    That's how broke it is
     
    Last edited: May 14, 2012
  10. JakeStarkey
    Offline

    JakeStarkey Diamond Member Supporting Member

    Joined:
    Aug 10, 2009
    Messages:
    156,463
    Thanks Received:
    14,075
    Trophy Points:
    2,165
    Ratings:
    +44,339
    It is so broke that all the government has to do, beginning right now, is deposit the SS taxes into the fund, and the problem is resolved.
     

Share This Page