Quote:
Originally posted by sgtclub
I'm not a conservative.
The risk of someone being on the streets because X% of their retirement was invested in a worthless stock, assuming X is a very small portion of their total retirement pool, is essentially non-existent. That is the risk you were talking about. You are right that the reward is incremental return on investment, but that tends to add up over 30 years to a significant amount.
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Here's the problem with that argument--by keeping the percentage in private accounts low, you lose most of their purported benefits. If they're the real cheese, why not go all in?
And, btw, go do a compouding calculator and see the difference between a 2% and 4% return over 40 years. It's a pretty big nut by the time you're done.
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