Quote:
Originally posted by ltl/fb
The world of individually directed retirement accounts is far from rational, and I would think you would be aware of this. How do the comparative costs come out if a bunch of people keep their SS-replacement accounts in CDs or money market or stable value funds?
Also, if the system ends up with one group of people living off their accounts and another (poorer) group getting $ from their accounts and directly from the gov't, it's really identifiable as welfare (instead of being disguised, like it is now) and that will cause issues.
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My research tends to show that over a thirty-year cycle, short-term cash-equivalents, money-market funds, bonds, and equities all tend to return about 3-4% real income. So, unless you have some assclowns trying to time the market for thirty years, or writing naked calls with their retirement accounts, on balance most people will be okay.
And I'm advocating going to a true welfare system, regardless of the issues. Social security is little more than inadequate welfare for poor retirees and ridiculous welfare for wealthy retirees now.
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