Yes. That's great for financially saavy people who can ride through the
troughs without having to touch their investments. The people SS was meant
to protect clearly AREN'T the financially well-schooled and who would become
a burden on society without some form of enforced saving for the future.
Except that with stocks, the risk is high. Ask BP, Worldcom, Enron and
other stock holders whether they would rather have a lower rate of return or
any money left at all. I was astounded to learn that many of AIG's risk
assessors deliberately excluded the Great Depression from their risk
calculations. That's like going to Monte Carlo or Vegas and pretending that
0 and 00 aren't on the roulette wheel.
The stock market whizzes like to point to old statistics to attract the
money for what's lately become a huge Ponzi scheme unrelated to the purpose
of financing new businesses. It started when all sorts of hedge funds and
alleged guarantees against risk appeared. Naked shorting comes to mind as
the beginning of the end. The financial markets of the world are not as
infallable as Wall Streeters would like to believe. When people can profit
from bad things happening to others, the seeds of doom have been sown.
Worse, still, is that the world markets are incredibly interlinked. Trouble
in any one spot, like Greece, reverberates through the economy out of
proportion to its actual weight.
What I believe will happen is that the folks who have socked away loads of
tax deferred investments might find they were better off paying the taxes
when they got the money. When the US runs out of magic tricks to pay its
debts, it won't have much choice but to grab up all the money it can by
raising the tax rates - just as boomers start drawing on those funds to stay
alive. Something like BP's big spill can be the lead domino in a very
seriously bad chain of events for the stock market. There's a big
disconnect between what government is doing FOR the elites and doing AGAINST
So enforce the savings yet give them options. BTW: if you have it
for the long term (like 50 years from 15 to 65), riding through the
troughs is not an issue. You keep taking the money out as needed and
over the years of retirement you pull some principal out during the
troughs, but you also take out less than you earn during the peaks.
Risks are not high unless you go out of your way to make them by
not diversifying, etc. Also, all of the suggestions was that if you
wanted to just stay in the "regular SS" you could. Interestingly
enough, most state run pension plans allow you to manage your own
portfolios to a certain extent.
Which should REALLY Scare the heck out of you since most of SS
"asssets" are government bonds. Every penny of the SS surplus over the
last nearly 30 years went to non-marketable treasury securities that
will have to be paid back (with interest) sometime soon. We could soon
make Greece look like a slightly overdrawn teenager compared to what we
have in store, especially that hidden by SS surplus which did a real
good job, for several administrations, of covering up the real debt.
Of course, assuming those funds are even available.
I want to find a voracious, small-minded predator
and name it after the IRS.
I was diversified out the ying-yang and it didn't matter much when the
market tanked. Every stock lost considerable value. I was just lucky not
to own a former blue chip that turned into a cow chip.
Add all the pension and health care promises made to state and local workers
that have no real dollars behind them and it's hard to see how any alleged
"recovery" will be more than a flash in the pan.
Yes. But at one time, he actually looked like a genius. Then he changed his
mind. I suspect that a close look at his personal finances would reveal the
reason. I wonder when we'll task the NSA to monitor our elected barnacles
the same way they spy on overseas bad guys.
The June 21 issue of Time has a brief piece about a criminal trial in
India that brought in verdicts on June 7. In 1984, 26 freaking years
ago, Union Carbide had a toxic gas release that killed fifteen freaking
thousand people in Bhopal. In 1985, the Indian gov't. sued for $3.3b.
In 1898 they settled for $470m. The seven UC employees found guilty
were sentenced to 2 years in jail. And the freaking American public
takes issue when a European uses the term "small people" rather than
American slang. What piggies. American's care more about Michael
Jackson's plastic surgery than they do answers to energy supplies :o)
I think that's more the 'American media'- than the people at large. It
is a price we pay for a media that is driven by greed, rather than
principle. Controversy sells papers.
Last night's local news had a call-in poll. They wanted to know how
many folks thought BP's 'offering of $20billion was going to be
enough' to fix things. The way it was worded & the multiple
answers they supplied gave no way of replying that - 'No, I don't
think it will cover it- but I have confidence that when the $20 is
spent, BP will toss some more in the pot.'
What country do you live in where MJ wouldn't trump energy supplies
for the front page?
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