Posted on 10/18/2007 10:07:04 AM PDT by Fred
There's no bait... seriously. But the truth is, Social Security reform is going to be extremely difficult. Also, Fred Thompson is hardly the first politician to point out there's a problem with that entitlement and to offer a solution. Pointing out the truth that the reform will be even harder than when Bush tried to deal with the issue shouldn't be viewed as peeing in your punch bowl deserving of hyperbolic responses. So actually I'm the one who's talking truth instead of campaign rhetoric. ;-)
My rate of 7% was based on what a pension fund would have done, or what an individual putting money into a 401k would have done. During the savings period prior to retirement, no financial advisor would recommend risk-free investing.
This is one of my pet peeves about the SSTF. While there were surpluses and there was still a long time horizon before the SSTF would need to be drawn down, it should have been invested in markets rather than the risk-free IOUs.
Had that been done over the last 25 years, and ahead for the next 10 years, the higher rate of return would have built much more than the $2T in the SSTF.
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