Good thing they're not in charge of Social Security

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

  1. Luddly Neddite
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    Luddly Neddite Diamond Member

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  2. Truthmatters
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    Truthmatters BANNED

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    how anyone can suggest privatizing SS in light of the performance of the private sector has displayed is amzing
     
  3. Ernie S.
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    Ernie S. Platinum Member

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    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
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    Toro Diamond Member

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    This is ridiculous.
     
  5. Toro
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    Toro Diamond Member

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    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
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    JakeStarkey Diamond Member Supporting Member

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    Many GOP are not for privatization of any part of SS.
     
  7. CrusaderFrank
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    CrusaderFrank Diamond Member

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    SocSecurity is already broke, Obama admitted it in August
     
  8. JakeStarkey
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    JakeStarkey Diamond Member Supporting Member

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    No, he did not. But your brain is broke, Frank.
     
  9. CrusaderFrank
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    CrusaderFrank Diamond Member

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    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
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    JakeStarkey Diamond Member Supporting Member

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    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.
     

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