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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (100819)6/19/2007 11:50:23 AM
From: Peter O'Brien  Read Replies (1) | Respond to of 173976
 
the SS "trust fund" does not invest in 1-yr CD's.

At least with CD's you can pick your maturity date
and interest rate exposure on the yield curve.

The SS "trust fund" invests in special NON-MARKETABLE
LONG-TERM Treasury bonds. They can never be "traded"
(i.e., bought when interest rates are high, and sold
when interest rates are low).

In fact, with long-term interest rates at historical lows
during the past few years, the SS "trust fund" has been
LOCKING-IN these historically low rates, which is really
bad!



To: Lizzie Tudor who wrote (100819)6/19/2007 12:04:28 PM
From: Peter O'Brien  Respond to of 173976
 
you ignore dividends paid by S+P500 companies,
so total return is actually higher.

total return would have been closer to 7% annualized
since 2001 with dividends considered.

not great, but not bad either, considering this was a
post-bubble period.

and, it is still much better than bond yields.


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