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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: Neocon who wrote (42873)10/5/2000 9:57:10 AM
From: Zeev Hed  Read Replies (1) | Respond to of 769667
 
Neocon, that is fine, if the government in its wisdom think that investing part of the SS in stocks (like S&P index) is better than treasuries, fine, but to achieve these historical rates and make sure everyone gets them, why not use the excess funds and do a fixed asset allocation (1/6 in S&P for instance). If they do it with the billions the management costs will be minimal, if each individual does it and rush from equities to binds and vice versa, a lot of them will mistime and the transaction costs will eat deeply into this 10%.

Zeev