Quote:
Originally posted by taxwonk
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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Short-term cash equivalents return 3-4% real interest? That surprises me, to the extent that I don't think I can believe it without seeing backup.
If SS becomes a pure welfare for old people system, it's no longer social security. If you are moving to this, why even bother having the forced savings? Especially if people can invest in whatever they want?
ETA who is going to administer the accounts? What a fucking recordkeeper nightmare. And what do they get invested in? Making it anything on the market complicates the recordkeeoping hugely, but there will be so much money that having a group of mutual funds probably won't work.
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