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“ Instead of the FICA contributions going to social security, they go into an index fund that you can track and that grows.” That works fine until a) you pick
by thatfrenchguy 8y ago
“ Instead of the FICA contributions going to social security, they go into an index fund that you can track and that grows.”
That works fine until a) you pick the wrong index fund (and most people don’t know anything about finance) or b) the US hits a japan level stagnation and you can’t retire at all.
The point of Social security is to be a safety net (that’s also why as a rich person you get less benefits from it).
- smileysteve 8y ago> That works fine until a) you pick the wrong index fund (and most people don’t know anything about finance) The irony of this posted in a Bogle thread is hilarious. Bogle subscribes to the research done in a Random Walk Down Wall Street. Take all of the people who know the most about finance in the world (run the best funds) and they have a ~50% chance of beating the broad based index (S&P 500) any given year; If you expand that 10 years, the number of funds approaches 0. If you include the fees, it's ~42% beating the market any given year. The "secret" and why bogleheads work is there is no picking. You pick the total stock market. But, if SS has regulatory concerns, it'll do just fine in VOO, representing the S&P 500.