John Dow's Retirement
Wall Street Journal (08/27/02) p.A12; Ferrara, Peter

The current debate over whether to let workers invest some of their Social Security in the stock market does not take into account the size of standard market investment returns compared to the current Social Security system's promises and payments, according to this opinion piece. Personal-account returns and benefits would be higher because they would be invested in real private capital that produces new income, rather than simple repayments that are not invested. The long-term real return on established stocks is more than 7 percent and on corporate bonds is more than 3 percent, and the risk of personal accounts is overstated, the commentary says.


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