Social Security Needs Private Investment

Which would you prefer when you retire - a Social Security check that will not provide enough security, or your own money from a balanced mutual fund?

A new study has found that investing the Social Security surplus in the stock market is less risky than maintaining the status quo. This, according to the National Center for Policy Analysis and the Private Enterprise Research Center at Texas A&M University.

The report shows that while the market can be volatile, as it is now, over time the trend is up far more than the return on Social Security. Over the last 35 years, the average annual real rate of return for an all-stock portfolio was 6.4 percent, with the lowest at 2.7 percent. By contrast, most young people entering the labor market can expect a return on Social Security taxes they pay of less than 2 percent.

There's plenty more in this report, but politicians want to control Social Security and that's why you'll have to make your wishes known if you want a better return on the money the government now takes out to pay other people's Social Security checks.