Quote:
Originally posted by sgtclub
I don't think this is a real risk, given that a very small portion of our total retirement pool will be permitted to be in private accounts.
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Ah, the conservative wish-think. Let's just pretend the risks aren't real.
But, clubby, risk and reward correlate, don't they? If they didn't, wouldn't we all move to nothing but the high reward investments?
(I'll note that the above correlation isn't exact and may point to one potential "fix", but a "fix" that, as Burger noted, isn't permitted because it would be communistic -- generally, a well diversified portfolio with part equity and part debt has both a higher return and a lower risk than an all debt portfolio, which is basically what SS is invested in; we could lower risk and increase return by letting the current trust fund invest in a portfolio of 20-30% stock).
