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:
    53,216
    Thanks Received:
    8,455
    Trophy Points:
    2,040
    Ratings:
    +20,829
    • Thank You! Thank You! x 1
  2. Truthmatters
    Offline

    Truthmatters BANNED

    Joined:
    May 10, 2007
    Messages:
    80,182
    Thanks Received:
    2,223
    Trophy Points:
    0
    Ratings:
    +2,233
    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. Platinum Member

    Joined:
    Nov 14, 2010
    Messages:
    33,652
    Thanks Received:
    7,711
    Trophy Points:
    1,140
    Location:
    Sweet Home Alabama
    Ratings:
    +12,388
    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:
    50,677
    Thanks Received:
    11,040
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +24,985
    This is ridiculous.
     
  5. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,677
    Thanks Received:
    11,040
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +24,985
    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

    Top Poster Of Month

    Joined:
    Aug 10, 2009
    Messages:
    136,649
    Thanks Received:
    12,292
    Trophy Points:
    2,165
    Ratings:
    +32,154
    Many GOP are not for privatization of any part of SS.
     
  7. CrusaderFrank
    Online

    CrusaderFrank Diamond Member

    Joined:
    May 20, 2009
    Messages:
    81,138
    Thanks Received:
    14,896
    Trophy Points:
    2,210
    Ratings:
    +36,833
    SocSecurity is already broke, Obama admitted it in August
     
  8. JakeStarkey
    Offline

    JakeStarkey Diamond Member Supporting Member

    Top Poster Of Month

    Joined:
    Aug 10, 2009
    Messages:
    136,649
    Thanks Received:
    12,292
    Trophy Points:
    2,165
    Ratings:
    +32,154
    No, he did not. But your brain is broke, Frank.
     
  9. CrusaderFrank
    Online

    CrusaderFrank Diamond Member

    Joined:
    May 20, 2009
    Messages:
    81,138
    Thanks Received:
    14,896
    Trophy Points:
    2,210
    Ratings:
    +36,833
    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

    Top Poster Of Month

    Joined:
    Aug 10, 2009
    Messages:
    136,649
    Thanks Received:
    12,292
    Trophy Points:
    2,165
    Ratings:
    +32,154
    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