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Trust Fund ROI Rates Continue to be Questionned
Picking up on an issue explored recently in a “Latest News” post on this site, GoBankingRates’ financial reporter Vance Cariaga takes a look at the interest income generated by Social Security’s trust fund reserves last year. Contrasting the nearly 2.4% return logged by Treasury bonds with the 25% return recorded by a segment of the S&P Index, he suggests that market investment vs. Treasury bonds could have added $500 billion to $700 billion” last year to the trust fund coffers, rather than the $70 billion return reported by the Social Security Administration trustees.
It’s an age-old argument, for sure, and has been the subject of much debate over the years. As Cariaga notes in his article, “Congress is unlikely to change its policy any time soon, which means the Social Security trust fund will probably keep underperforming the market — and potentially inflation — for the foreseeable future.” But then, who can see the future?
Read Cariaga’s GoBankingRates post here.