Monthly "SS" would be 218% higher with bonds; 836% higher with stocks, assuming average life expectancy after retirement.
Truly, what a bunch of utter bullshit! This could have been handled a hell of a lot better than just upping the rate from 3% to 12.4%.
And poverty would be well on its way to being eliminated permanently. And Democrats are against privatization, even partial? Fucking idiots.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Harry Browne suggested that Social Security withholding could be used to purchase annuities, which would probably be the safest way to privatize. Imagine the economic shot in the arm that would be. Of course, that applies also to money in 401K/403g plans.
We of course would love to keep it voluntary and have our Social Security withholdings added to the money going into our retirement plans, but that risks about 90% of the population saving nothing, and having no safety net for retirement other than standard welfare. The annuity purchase needs to be mandatory and automatic. So should the government run the annuity, or does it get contracted out to, say, TIAA-CREF or Vanguard.
Monthly "SS" would be 218% higher with bonds; 836% higher with stocks, assuming average life expectancy after retirement.
Truly, what a bunch of utter bullshit! This could have been handled a hell of a lot better than just upping the rate from 3% to 12.4%.
And poverty would be well on its way to being eliminated permanently. And Democrats are against privatization, even partial? Fucking idiots.
You're against Democrats. You're against Republicans. I believe you're against libertarians and socialists too at least partially because of their open borders beliefs. Who are you for?
Reub wrote:You're against Democrats. You're against Republicans. I believe you're against libertarians and socialists too at least partially because of their open borders beliefs. Who are you for?
I'm for the Common Sense in Public Policy party!
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Reub wrote:You're against Democrats. You're against Republicans. I believe you're against libertarians and socialists too at least partially because of their open borders beliefs. Who are you for?
I'm for the Common Sense in Public Policy party!
Well at least you're not for the Rent Is Too Damn High Party.
Helvering v. Davis (1937): Social Security ""contributions" are in fact taxes.
Fleming v. Nestor (1967): "To engraft upon the Social Security system a concept of "accrued property rights" would deprive it of the flexibility and boldness in adjustment to ever changing conditions which it demands... It is apparent that the non-contractual interest of an employee covered by the Act cannot be soundly analogized to that of the holder of an annuity, whose right to benefits is bottomed on his contractual premium payments."
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
MachineGhost wrote:Fleming v. Nestor (1967): "To engraft upon the Social Security system a concept of "accrued property rights" would deprive it of the flexibility and boldness in adjustment to ever changing conditions which it demands..."
MachineGhost wrote:Helvering v. Davis (1937): Social Security ""contributions" are in fact taxes.
Fleming v. Nestor (1967): "To engraft upon the Social Security system a concept of "accrued property rights" would deprive it of the flexibility and boldness in adjustment to ever changing conditions which it demands... It is apparent that the non-contractual interest of an employee covered by the Act cannot be soundly analogized to that of the holder of an annuity, whose right to benefits is bottomed on his contractual premium payments."
In other words, they could no longer raid the piggy bank.
The research team—Gary Burtless of Brookings Institution and Anqi Chen, Wenliang Hou, Alicia Munnell and Anthony Webb of Boston College—assumed that up to 40% of trust fund assets were stashed in the stocks in a broad market index. They then compared the possible outcomes of this allocation using historical data, as well as simulations of future returns.
One set of historical simulations assumed a small portion of the Social Security trust fund was invested in stocks starting in 1984, with the allocation gradually increased each year up to the maximum 40%. That starting date was chosen to reflect the impact of 1983 Social Security reforms aimed at building up trust fund reserves.
Another set of simulations put the start date at 1997, which is around the time the notion of putting stocks in Social Security first grabbed the spotlight in Washington. Between 1994 and 1996, at the request of President Bill Clinton, the Social Security Advisory Council studied several proposals for equity investing, both inside the trust fund as well as by adding individual investment accounts—the so-called privatization option. But the idea was controversial, and Congress did not move forward on these proposals. (The Boston College study focused only on equity investments within the trust fund.)
Both sets of historical simulations found that adding stocks dramatically improved trust fund solvency. If the stock investment started in 1984, the trust fund’s assets would have grown to $3.8 trillion by last year, which was one-third higher than its actual holdings of $2.8 trillion. If stock investing began in 1997, the trust fund would have reached $3.4 trillion.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
