Download or read book THE STOCK MARKET AND SOCIAL SECURITY THE RISKS AND THE REWARDS HEARING S HRG 105 567 SPECIAL COMMITTEE ON AGING U S SENATE written by United States. Congress. Senate. Special Committee on Aging and published by . This book was released on 1999* with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 134 pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 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 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 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 Social Insecurity Personal Accounts and the Stock Market Collapse written by Andrew G. Biggs and published by . This book was released on 2009 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent financial crisis and ensuing stock market gyrations have drawn renewed attention to Social Security reform, in particular proposals to establish personal retirement accounts that invest in stocks and bonds. As Barack Obama asked a campaign audience, quot;Imagine if you had some of your Social Security money in the stock market right now. How would you be feeling about the prospects for your retirement?quot; But despite the recent market downturn, individuals investing four percentage points of the 12.4 percent payroll tax in a personal account holding a quot;life-cyclequot; portfolio and retiring today would have increased their total Social Security benefits by more than 15 percent. Moreover, a simulation of ninety-five cohorts of individuals retiring from 1915 through 2008 found that all of them would have increased their total Social Security benefits by holding personal accounts. These results are not intended to understate the risks of equity investment, but rather put them in perspective. Some analysis has overstated the importance of returns over a short period of time relative to those over the full course of a working lifetime by looking at declines in stock returns over only the last year. While individuals retiring today may have ended with a lower account balance than they expected, they would nevertheless have significantly increased their total retirement benefits by virtue of choosing to participate in a personal retirement account.

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 Money s Worth written by John Geanakoplos and published by . This book was released on 1998 with total page 106 pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 The New Financial Order written by Robert J. Shiller and published by Princeton University Press. This book was released on 2009-02-09 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: In his best-selling Irrational Exuberance, Robert Shiller cautioned that society's obsession with the stock market was fueling the volatility that has since made a roller coaster of the financial system. Less noted was Shiller's admonition that our infatuation with the stock market distracts us from more durable economic prospects. These lie in the hidden potential of real assets, such as income from our livelihoods and homes. But these ''ordinary riches,'' so fundamental to our well-being, are increasingly exposed to the pervasive risks of a rapidly changing global economy. This compelling and important new book presents a fresh vision for hedging risk and securing our economic future. Shiller describes six fundamental ideas for using modern information technology and advanced financial theory to temper basic risks that have been ignored by risk management institutions--risks to the value of our jobs and our homes, to the vitality of our communities, and to the very stability of national economies. Informed by a comprehensive risk information database, this new financial order would include global markets for trading risks and exploiting myriad new financial opportunities, from inequality insurance to intergenerational social security. Just as developments in insuring risks to life, health, and catastrophe have given us a quality of life unimaginable a century ago, so Shiller's plan for securing crucial assets promises to substantially enrich our condition. Once again providing an enormous service, Shiller gives us a powerful means to convert our ordinary riches into a level of economic security, equity, and growth never before seen. And once again, what Robert Shiller says should be read and heeded by anyone with a stake in the economy.

Download or read book Market Valuation of Accrued Social Security Benefits written by John Geanakoplos and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: One measure of the health of the Social Security system is the difference between the market value of the trust fund and the present value of benefits accrued to date. How should present values be computed for this calculation in light of future uncertainties? We think it is important to use market value. Since claims on accrued benefits are not currently traded in financial markets, we cannot directly observe a market value. In this paper, we use a model to estimate what the market price for these claims would be if they were traded. In valuing such claims, the key issue is properly adjusting for risk. The traditional actuarial approach - the approach currently used by the Social Security Administration in generating its most widely cited numbers - ignores risk and instead simply discounts "expected" future flows back to the present using a risk-free rate. If benefits are risky and this risk is priced by the market, then actuarial estimates will differ from market value. Effectively, market valuation uses a discount rate that incorporates a risk premium. Developing the proper adjustment for risk requires a careful examination of the stream of future benefits. The U.S. Social Security system is "wage-indexed": future benefits depend directly on future realizations of the economy-wide average wage index. We assume that there is a positive long-run correlation between average labor earnings and the stock market. We then use derivative pricing methods standard in the finance literature to compute the market price of individual claims on future benefits, which depend on age and macro state variables. Finally, we aggregate the market value of benefits across all cohorts to arrive at an overall value of accrued benefits. We find that the difference between market valuation and "actuarial" valuation is large, especially when valuing the benefits of younger cohorts. Overall, the market value of accrued benefits is only 4/5 of that implied by the actuarial approach. Ignoring cohorts over age 60 (for whom the valuations are the same), market value is only 70% as large as that implied by the actuarial approach.

Download or read book Social Security written by Larry W. DeWitt and published by CQ Press. This book was released on 2008 with total page 584 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Documentary History tells the story of the creation and development of the U.S. Social Security program through primary source documents, from its antecendents and founding in 1935, to the controversial issues of the present. This unique reference presents the complex history of Social Security in an accessible volume that highlights the program's major moments and events.

Download or read book Prospects for Social Security Reform written by Olivia S. Mitchell and published by University of Pennsylvania Press. This book was released on 1999-01-29 with total page 446 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United States social security system is the nation's largest social insurance program. As such, it has a far-reaching impact throughout the economy, influencing not only old-age economic security but also many behaviors, including corporate employment policy, retirement patterns, and personal saving. In the past, the system's universal coverage and generous benefits ensured popular support to a degree enjoyed by no other form of "big government" social spending. Yet over two-thirds of all Americans today believe that the social security system will face bankruptcy by the time they retire. The question of social security reform—how to reform the system or whether the system needs reform at all—is the subject of heated debate at all levels of government, in the media, and among workers, pensioners, and employers. Prospects for Social Security Reform informs the debate by exploring why the system is at a crossroads today and what to do about it. Contributors detail the size and nature of the problem, explain views of key "stakeholders" regarding reform options, and report new evidence on how reform might affect the economy. Research findings and public opinion polls are analyzed, as are lessons from other countries experimenting with new ways to deliver old-age benefit promises. No other volume includes as diverse and expert a set of perspectives on reform and privatization as those gathered here from economists, actuaries, employers, investment managers, and representatives of organized labor. Among its chapters is the path-breaking study "Social Security Money's Worth," the 1999 winner of the TIAA-CREF's Paul A. Samuelson Award for Outstanding Scholarly Writing on Lifelong Financial Security.

Download or read book Public Finance and Public Policy written by Jonathan Gruber and published by Macmillan. This book was released on 2005 with total page 806 pages. Available in PDF, EPUB and Kindle. Book excerpt: Chapters include: "Income distribution and welfare programs", "State and local government expenditures" and "Health economics and private health insurance".

Download or read book Measuring and Managing Federal Financial Risk written by Deborah Lucas and published by University of Chicago Press. This book was released on 2010-04-15 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: The U.S. government is the world’s largest financial institution, providing credit and assuming risk through diverse activities. But the potential cost and risk of these actions and obligations remain poorly understood and only partially measured. Government budgetary and financial accounting rules, which largely determine the information available to federal decision makers, have only just begun to address these issues. However, recently there has been a push to rethink how these programs are valued and accounted for, and some progress has been made in applying modern valuation methods—such as options pricing, risk-adjusted discount rates, and value at risk—to these types of obligations. This book contains new research, both empirical and methodological, on the measurement and management of these costs and risks. The analyses encompass a broad spectrum of federal programs, including housing, catastrophe insurance, student loans, social security, and environmental liabilities. Collectively, the contributions gathered in Measuring and Managing Federal Financial Risk demonstrate that the logic of financial economics can be a useful tool for studying a range of federal activities.

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.