So much talk of Social Security and Medicare and how they will be out of funds and insolvent after folks have contributed throughout their working lives for a retirement income. One of the flaws of these Security funds is the investment vehicle. The funds are invested in United States Treasuries which pay a low yield that barely keeps up with inflation.
The simple solution of course is investing a portion of these taxpayer funds in a higher yielding long term investment like the S&P 500 index and even the Nasdaq 100 index. These index funds can produce long term returns of close to 10% surpassing inflation while creating a surplus of funds that will secure the Retirement programs for the long term.
The solution requires no additional taxpayer or government funds but let's the long term market compounding do the work. When we take into account reinvesting dividends into the returns of these index funds is even higher.
The solution is simple. The USA has some of the best capital markets in the world and it's time we use our financial strength to improve our own Balance sheet. We can reduce our national deficit starting with the two Retirement expenses.
America is a problem solving nation and is now time to Solve the Problem.
With Love,
Coach K
No comments:
Post a Comment