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KC |
Just for the SS lovers |
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62656 |
#1 | |||
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Good reading, but I noticed that article was written April, 2005. I'd like to hear from these folks today after Wall-Street got a hold of their retirement.
That would really be interesting reading.
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OOF |
#2 | |||
62656 wrote:Did you happen to notice this information in that article: Our plan, put together by financial experts, was a "banking model" rather than an "investment model." To eliminate the risks of the up-and-down stock market, workers' contributions were put into conservative fixed-rate guaranteed annuities, rather than fluctuating stocks, bonds or mutual funds. Our results have been impressive: We've averaged an annual rate of return of about 6.5 percent over 24 years. And we've provided substantially better benefits in all three Social Security categories: retirement, survivorship and disability. I would imagine that there was very little or no volatility in their investment. Why do the arguments against changes to Social Security to allow some individual ownership of the future always reference the short term bear markets? |
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KC |
#3 | |||
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OOF you got me. They seem to like paying all their working lives and getting one fifth of what any other system would pay them. Math challenged is all I can
figure.
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OOF |
#4 | |||
KC wrote:It doesn't take a whole lot of math to figure out some of this stuff. Let's just look at one simple fact. If someone pays into Social Security for 40 years and dies at age 60 the gubmit gets that part of the estate (minus any spousal benefits). If someone pays into a private retirement account for 40 years and dies at age 60 that part of the estate goes to the heirs. |
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ToddZilla6 |
#5 | |||
62656 wrote:I don't think you understand the nature of long-term investing. As OOF pointed out, there is always a big focus on short-term performance but long-term performance is ignored. The Dow Jones Industrial Average is almost 10 times the amount it was 40 years ago; ditto for the S&P 500. |
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