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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (217187)2/4/2005 8:19:47 AM
From: Road Walker  Read Replies (1) | Respond to of 1571417
 
re: 7% is a reasonable assumption for gross returns, although if you want to be really conservative you could use a slightly lower figure. I believe Bush's 4% is for inflation adjusted returns.

Actually it's 4.6% from the Bush team. And they are saying it has to be >3% for it to be a break even, otherwise you loose. And we don't have the benefit cuts that you sacrifice yet, that's key.

There are a ton of assumptions here. Right now we have exceptionally low inflation... if it goes up to even the 4%-5% range, you are in trouble. If it does a Jimmy Carter (8%-12%), you are dead meat.

Frankly, if they are voluntary and it gets passed, it will be a pure financial decision, with 10,000 financial advisers giving 5000 opinions. Even without the facts I read a quote from one in this morning's WSJ saying it's a bad risk.

John