Risk
Pro
- If the stock market returns continue to match past performance it could leave the system healthier.
Con
- Americans should expect lower returns if the market investments are administered by a (conservative) federal control board, as compared to returns from individual investing.1
-
- The investment will only work if the returns are 10.7% annually and it is impossible to predict that kind of consistent return.2
1. Source: Richard C. Leone. The White House Conference on Social Security- Statements from Participants. The Twentieth
2. Source: David C. John, “CRS Report Says Government Investment Won’t Save Social Security, Executive Memorandum
No. 565, December 21, 1998, Heritage Foundation.