General Discussion
In reply to the discussion: If the Social Security fund was invested in the stock market...? [View all]whatthehey
(3,660 posts)Would it have to pay out its entire balance this month?
What happened to the hundredfold increase in the value of its stock market holdings since SSI taxes began to be collected not to mention the dividends it's been collecting for those nigh 80 years, usually varying between 2.5 and 5%?
If people are quiet on the benefits of DCA and a century plus of proven CAGR just because the DJIA goes down 1.5% one day and up the same amount the next day, then they either don't understand the issue at all or more likely have gotten tired of explaining it to others who don't.
Me? I'd personally advocate a good mixed model of investing for any large fund, and the SSA is essentially the world's largest fund. If I with my paltry investments am sensible enough to neither be 100% in risky volatile penny stocks nor 100% in low yield bonds and am doing reasonably well because of that good sense, I suspect the financial geniuses the Feds could hire to manage a few trillion could be both more sensible and more successful given the chance.