Indexed Annuities are fixed and so would offer a guarantee of principle, while allowing for risk-free gains linked to stock indexes
2007-12-30 03:54:31 · 3 answers · asked by dagable 2 in Business & Finance ➔ Investing
Unfortunately the "trust fund" surplus is spent every year on discretionary spending. So either spending would need to be cut in order to save the surplus, or we would have to borrow more to fund the gap.
The trust fund is really just an IOU built into the budget. So when social security is operating at a deficit in 2017, other spending will need to be cut or borrowing increased. The trust fund supposedly gets us into 2040 or so, but only from an accounting perspective - there is no money set aside. IMHO, lawmakers are being anything but strait fororward about the funding of social security. They are lying to our faces.
2007-12-30 04:05:44 · answer #1 · answered by djasking 2 · 1⤊ 1⤋
How about getting rid of social security and handing the responsibility back to the people?
2007-12-30 04:02:33 · answer #2 · answered by Mmmkay? 4 · 0⤊ 1⤋
(1) Under current law, it would be illegal.
(2) The only investments considered "risk-free" are those guaranteed by the federal government. If the federal government guaranteed it, the return would be similar to what they receive now.
2007-12-30 08:46:06 · answer #3 · answered by zman492 7 · 0⤊ 1⤋