Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: allen643 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: May 15 Social Security Article Date: 5/19/2000 11:18 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
. Where in the private sector can a company collect premiums for 40 years and then refuse to pay out to you or your heirs? >>

It is called a simple life annuity. Any insurance company will be glad to sell you one. Whole life policies always converted to these. You were more or less forced into buying it because you needed the tontine like effect in order to guard against the probabability of living a very long time, ie out-living your income. I believe it is more common though to choose one with some residual value in case you die fairly soon after buying it.

Interestingly enough, the problem facing Social Security should also face the stock market. In order to live off of stocks, you need to call your broker for a check. In order for the check not to bounce, deposits into the checking account have to equal the check amounts. I went onto the Cato Institute site (www.socialsecurity.org) and viewed their retirement calculator. Their applet giving the amount I would get if my social security payments had been invested in the stock market literally gave me a result that would mean that people probably would be investing over 100% of their income in the stock market when I retire. I had a feeling my check would bounce under those circumstances.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement