Download or read book Investing Social Security Funds in the Stock Market written by and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: For the time being, Social Security receipts are more than enough to fund current benefits. But beginning in 2017, under current law, benefits are projected to exceed Social Security receipts. At that point, if not before, either benefits will have to be cut, taxes will have to be raised, or the shortfall will have to be made up either by tapping non-Social Security revenues, which would reduce the unified federal budget surplus, or by an increase in federal borrowing. Any current proposal to extend the financial life of Social Security is likely to include increases in taxes, cuts in benefits, or both. In addition to those possibilities, is the notion of allowing beneficiaries to contribute some of their Social Security payments directly into personal accounts. Because equity has historically yielded a higher rate of return than have Treasury securities, it is argued that allowing individuals to invest some of their contributions in the stock market would offset at least some of the effects of either tax increases or benefit cuts in any package of reforms. Between 1926 and 2003, the average annual total rate of return on large corporate stocks was 7.2%, after adjusting for inflation. That was 4.9 percentage points higher than the average real return of 2.3% on long-term government bonds over the same period. But there is substantial variation in rates of return, which diminishes as the holding period grows longer. Even with relatively long holding periods there are still instances of below-zero rates of return. The longest holding period with a below-zero return for stocks was 18 years and 11 months. Although, longer holding periods have historically reduced the volatility of stock returns that does not necessarily mean that the risk associated with holding stocks falls as holding periods lengthen. A recent subject of speculation has been the risk that the retirement of the babyboom generation will coincide with a substantial sell-off of assets. Sometimes referred to as the "asset market meltdown hypothesis," the concern is that as increasing numbers of retirees sell the assets they have accumulated over their working lives in order to continue the lifestyles to which they have become accustomed, asset prices will decline. Theory alone seems insufficient to predict what might happen to asset prices when the baby boom generation begins to retire. There are reasons to believe that they will sell some of their assets, but there are also reasons to believe that those sales will not be so large as to disrupt financial markets or cause a precipitous drop in the prices of assets traded in those markets. This report will not be updated.
Download or read book Social Security financing implications of government stock investing for the trust fund the federal budget and the economy report to the Special Committee on Aging U S Senate written by and published by DIANE Publishing. This book was released on with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Social Security Financing written by United States. General Accounting Office and published by . This book was released on 1998 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investing Social Security Funds in the Stock Market written by Brian W Cashell and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effects of Investing Social Security Funds in the Stock Market when Fixed Costs Prevent Some Households from Holding Stocks written by Andrew B. Abel and published by . This book was released on 2000 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: With fixed costs of participating in the stock market, consumers with high income will participate in the stock market, but consumers with lower income will not participate. If a fully-funded defined-contribution social security system tries to exploit the equity premium by selling a dollar of bonds per capita and buying a dollar of equity per capita, consumers who save but do not participate in the stock market will increase their consumption, thereby reducing saving and capital accumulation. Calibration of a general equilibrium model indicates that this policy could reduce the aggregate capital stock substantially, by about 50 cents per capita.
Download or read book Risk Aspects of Investment Based Social Security Reform written by John Y. Campbell and published by University of Chicago Press. This book was released on 2009-02-15 with total page 509 pages. Available in PDF, EPUB and Kindle. Book excerpt: Our current social security system operates on a pay-as-you-go basis; benefits are paid almost entirely out of current revenues. As the ratio of retirees to taxpayers increases, concern about the high costs of providing benefits in a pay-as-you-go system has led economists to explore other options. One involves "prefunding," in which a person's withholdings are invested in financial instruments, such as stocks and bonds, the eventual returns from which would fund his or her retirement. The risks such a system would introduce—such as the volatility in the market prices of investment assets—are the focus of this offering from the NBER. Exploring the issues involved in measuring risk and developing models to reflect the risks of various investment-based systems, economists evaluate the magnitude of the risks that both retirees and taxpayers would assume. The insights that emerge show that the risk is actually moderate relative to the improved return, as well as being balanced by the ability of an investment-based system to adapt to differences in individual preferences and conditions.
Download or read book Privatizing Social Security written by Martin Feldstein and published by University of Chicago Press. This book was released on 2008-04-15 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume represents the most important work to date on one of the pressing policy issues of the moment: the privatization of social security. Although social security is facing enormous fiscal pressure in the face of an aging population, there has been relatively little published on the fundamentals of essential reform through privatization. Privatizing Social Security fills this void by studying the methods and problems involved in shifting from the current system to one based on mandatory saving in individual accounts. "Timely and important. . . . [Privatizing Social Security] presents a forceful case for a radical shift from the existing unfunded, pay-as-you-go single national program to a mandatory funded program with individual savings accounts. . . . An extensive analysis of how a privatized plan would work in the United States is supplemented with the experiences of five other countries that have privatized plans." —Library Journal "[A] high-powered collection of essays by top experts in the field."—Timothy Taylor, Public Interest
Download or read book The Stock Market and Social Security the Risks and the Rewards written by United States. Congress. Senate. Special Committee on Aging and published by . This book was released on 1998 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Investing in the Private Market written by United States. Congress. House. Committee on Ways and Means. Subcommittee on Social Security and published by . This book was released on 1999 with total page 174 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Charles Schwab Guide to Finances After Fifty written by Carrie Schwab-Pomerantz and published by Crown Currency. This book was released on 2014-04-01 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: Here at last are the hard-to-find answers to the dizzying array of financial questions plaguing those who are age fifty and older. The financial world is more complex than ever, and people are struggling to make sense of it all. If you’re like most people moving into the phase of life where protecting—as well as growing-- assets is paramount, you’re faced with a number of financial puzzles. Maybe you’re struggling to get your kids through college without drawing down your life’s savings. Perhaps you sense your nest egg is at risk and want to move into safer investments. Maybe you’re contemplating downsizing to a smaller home, but aren’t sure of the financial implications. Possibly, medical expenses have become a bigger drain than you expected and you need help assessing options. Perhaps you’ll shortly be eligible for social security but want to optimize when and how to take it. Whatever your specific financial issue, one thing is certain—your range of choices is vast. As the financial world becomes increasingly complex, what you need is deeply researched advice from professionals whose credentials are impeccable and who prize clarity and straightforwardness over financial mumbo-jumbo. Carrie Schwab-Pomerantz and the Schwab team have been helping clients tackle their toughest money issues for decades. Through Carrie’s popular “Ask Carrie” columns, her leadership of the Charles Schwab Foundation, and her work across party lines through two White House administrations and with the President’s Advisory Council on Financial Capability, she has become one of America’s most trusted sources for financial advice. Here, Carrie will not only answer all the questions that keep you up at night, she’ll provide answers to many questions you haven’t considered but should.
Download or read book Social Security and the Stock Market written by Alicia Haydock Munnell and published by W.E. Upjohn Institute. This book was released on 2006 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this book is to explore the use of equities to help solve the Social Securityfinancing problem.
Download or read book Should a Portion of Social Security Benefits be Invested in Equities written by Robert Greenstein and published by . This book was released on 1999 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Investing Social Security Funds in the Stock Market when Fixed Costs Prevent Some Households from Holding Stocks written by A. B. Aabel and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Social Security Financing written by Jose Oyola and published by . This book was released on 1998-06-01 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Social Security (SS) program faces a long-term financing challenge, primarily due to changing demographics. In response, reform advocates have suggested numerous options to curb benefits or increase revenues. One proposed option is to invest SS funds in the stock market with the intention of earning higher returns. To better understand the potential implications of stock investing for the federal government, this report studies the implications of having the SS trust fund invest in the stock market. It assesses the impact of government stock investing on (1) the SS trust fund, (2) the U.S. economy, & (3) the federal budget.
Download or read book Understanding SSI Supplemental Security Income written by and published by DIANE Publishing. This book was released on 1998-03 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication informs advocates & others in interested agencies & organizations about supplemental security income (SSI) eligibility requirements & processes. It will assist you in helping people apply for, establish eligibility for, & continue to receive SSI benefits for as long as they remain eligible. This publication can also be used as a training manual & as a reference tool. Discusses those who are blind or disabled, living arrangements, overpayments, the appeals process, application process, eligibility requirements, SSI resources, documents you will need when you apply, work incentives, & much more.
Download or read book Pay Yourself First written by Timothy W. Cunningham and published by John Wiley & Sons. This book was released on 1996-09-28 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by the founders of the Life Cycle Mutual Funds, a revolutionary age- and solution-based family of mutual funds, this guide demystifies the principles of retirement investing and shows readers how to take charge of their financial future. Using real-life anecdotes and examples, this text focuses on the human element involved in retirement planning. 20 charts.
Download or read book Social Security s Investment Shortfall written by Nils Hemming Hakansson and published by World Scientific. This book was released on 2013 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study documents that the notion of Social Security as a minimal safety net is consistent with the views of both Adam Smith and Friedrich Hayek and that private social security accounts are inefficient and subject to moral hazard and huge productivity losses. It also introduces a novel approach to long-term investing suitable for perpetual funds consistent with the empirical phenomena of risk premia and mean reversion, including no asset sales and the use of short-term borrowing on a rollover basis to cover negative net inflows.
