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


To: combjelly who wrote (323965)2/1/2007 12:30:51 PM
From: TimF  Respond to of 1578757
 
Factoring in inflation can counter the "I'd do better putting it under my mattress" argument, but it doesn't defeat the argument that relatively safe investments will fairly consistently outperform SS's return. The blogger gave the example that the Dow Jones has had a better return, even if you invested at its late 1999 peak, and the Dow is all stocks, not a mix of stocks and bonds.

Can I absolutely guarantee that every widely diversified, low to at most moderate risk portfolio will do better over any period than SS? Of course not, but the vast majority of them will do so. If you really want inflation protection there are inflation protected investments that will give you a better return.

Its not reasonable to expect perfection from the alternatives when SS itself is far from perfect.