The Bernie-Bros are going to have a meltdown. Social security is Socialist (just like the Veterans Administration’s healthcare system). Total government control and we have no choice of participating or not. But, we are told it is better than sliced bread.
All that money you’ve poured into the Social Security trust fund over the years earned less than 1% during 2020, the funds’ administrators have revealed.
The S&P 500 index SPX, +0.60% ? Try 18%.
Even a simple balanced fund of U.S. stocks and bonds, such as the Vanguard Balanced Index Fund VBIAX, +1.08%, earned 16%.
And the giant pension and investment fund run by the government of Norway earned 10.9%.
The returns earned by Social Security is the scandal that keeps on taking. The previous year, the Norwegian pension fund gained 20%, the balanced index fund 22%, and the S&P 500 31%.
Your and my Social Security dollars? Just 2.2%.
The only problem with that analogy, like with many Government procurements, it’s at the lowest cost. And the above shows the lowest return on my involuntary contribution.
Yet, even slapped in the face with that, Big Statists will decry the “math” and emphasis the “collective” nature – and how WONDERFUL it has been.
And won’t recognize that I would have done better with my money than the Govt would have done. This is the financial version of the WuFlu Lockdown.