The Mudcat Café TM
Thread #54502 Message #845673
Posted By: DougR
11-Dec-02 - 09:31 PM
Thread Name: BS: 2 Setbacks for Bush
Subject: RE: BS: 2 Setbacks for Bush
Don: I doubt that your experience differs much from a lot of other people of our generation. I devoted the majority of my career to non-profit organizations ...not well known for paying high wages, and most of those years I didn't even have Social Security (non-profits in those days had to opt to be in SS and many did not because of the cost). It wasn't until I went into business for myself that I became eligible for SS. I wasn't able to amass much in the way of savings myself during those years.
My point, though, is if you check any ten year period in the history of the stock market, an investment in a growth mutual fund will provide more capital than an investment in a bank's saving's account or Social Security. The investor has to assume responsibility for choosing a performing fund of course, but that is not so difficult because the history of the fund is available through the Prospectus.
I am not proposing that folks our age consider a program such as the one proposed, and neither is the Bush administration. This program would only be available to young workers not old folks like us anyway.
There is no way to absolutely assure that the stock market is going to be in a favorable position when one retires. However, I do believe that a young person investing even today in a well performing mutual fund will come out better when he/she retires than the person who just relies on the current SS program.
DougR