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Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?


To: Wharf Rat who wrote (69691)5/3/2018 3:39:04 PM
From: i-node  Read Replies (1) | Respond to of 354891
 
>> So investing in US government bonds isn't a real investment?

Requiring, by law, that the only investment be in US government debt, is somewhat presumptuous, is it not? After all, you're trying to create a plan whose most basic objective is to retain financial consistency for multiple average life expectancies end-to-end.

That is, the most basic objective is that at the end of the first lifespan (70-80 years, essentially), it still has sufficient funding to pay benefits required by the next generation. This is the failure. At the end of the first lifespan, SS is out of money.

Had the GWB changes been made -- under which perhaps 8% could have been invested in better paying investments, controlled by the beneficiary, we would have been far better off. But the law doesn't permit it.



To: Wharf Rat who wrote (69691)5/3/2018 3:46:09 PM
From: TimF  Read Replies (1) | Respond to of 354891
 
The US government investing in US government bonds isn't a real investment.

Just as if I take money out of my savings account and blow it on wild partying and then promise to pay it all back with interest that promise doesn't represent a real investment for me.

Yes there are reasons sometimes to get down to a lower level and consider the different funds not just the overall balance. For the Social Security program the government bonds are a real investment.

But its the overall balance that's most important in the end, and shuffling money around from fund to fund, or from my left pocket to my right, doesn't represent an investment when you consider the whole.