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Politics : Formerly About Advanced Micro Devices
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To: SilentZ who wrote (214487)1/8/2005 10:59:36 PM
From: RetiredNow  Read Replies (2) of 1573703
 
But zofsilence, it is not a smart system, because it never tied your contributions to an account in your name. If it really were structured in such a way that every dollar you put into the system was put into an account in your name and invested in T-Bills just for you, then I'd say this is about as risk-free as you get in today's world. But that is NOT the case. You are paying for someone else's retirement and ALL actuaries agree that the way it is structured today will lead to bankrupting the SS Trust Fund by 2042 to 2052 at the latest. That adds a new element of risk to it, because that virtually ensures that IF you get any money out of the system when you retire, it will most certainly be less than what you put in. So your real rate of return will be negative.

You call that risk-free? I call that VERY bad investing. If nothing else, vote for the privatization and then invest all the contributions that go into your personal account, into T-Bills. At least in that way, you will guarantee a positive rate of return (before inflation). As for myself and my kids, we'll vote for privatization and then put all of those funds into a horizon fund with a date near our anticipated retirement...and I would bet everything I own today it will out perform both your T-Bill account and any amounts that the gov't would have paid me through the old social security system.
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