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

To: RetiredNow who wrote (328930)	3/15/2007 10:35:36 AM
From: TimF	Read Replies (1) \| Respond to of 1576860

Some folks would say that it is appropriate to invest everyone's retirement money in Treasuries because they are safe. But that is contrary to all the smartest financial minds in the business. I agree. They are pretty safe in terms of not taking a loss in nominal dollars if you hold to expiration, but you can take a loss adjusted for inflation, and if your trading them you can take a loss in even nominal dollars as the trade swings against you. Also you don't have to actually take a loss for them to be a less than ideal investment. The normal rate of return is lower than in other investments. For SS it is even worse for those paying at or near the maximum, possibly even negative as you point out. Investing it in just Treasuries is not just stupid, it's criminal, because our gov't is depriving us of decades of good growth Also investing in treasuries means the government has to "pay itself back" later. In a real sense the money isn't invested at all. There is no real return, they just take the money from others when they need to cover the bonds later.