Latest News

An Argument for Better Investment of Social Security Funds

In a post yesterday on, finance writer Brent Arends takes exception to how Social Security’s trust fund reserves have been invested over the years, suggesting that deploying the balance in selected U.S. stocks could have produced a return far exceeding the 2.6% return achieved via the legally required special-issue Treasury bonds. It’s an interesting argument, but not a new one, that has been visited multiple times in the past with the conclusion being to avoid the risk of stock market fluctuations. Arends’ article also touches on a view of how the current investment approach–while legally mandated–enables the federal government to, in effect, “use” Social Security funds for other purposes while issuing Treasury bonds as collateral. This portion of the argument, naturally, leads many to propagate rumors about why Social Security has a long-term solvency problem, especially those who discount the viability of U.S. debt.

Read Arends’ post here.

The link provided above connects readers to the full content of the posted article. The URL (internet address) for this link is valid on the posted date; cannot guarantee the duration of the link’s validity. Also, the opinions expressed in these postings are the viewpoints of the original source and are not explicitly endorsed by AMAC, Inc.; the AMAC Foundation, Inc.; or

What's Your Opinion?

We welcome your comments. Join the discussion and let your voice be heard. All fields are required

Website by Geiger Computers