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Dow 15,000 And The Retirement Crisis Ahead

Wednesday, May 8, 2013 - 7:22 PM
The Dow’s cracked 15,000 and the S&P is at record highs, so it’s time to pop open the champagne and celebrate, right? Well, absolutely, if you’ve got a bunch of money in the stock market. Which means first you’d have to be an American with savings. Which means you’re a rare American, indeed.

http://www.washingtonpost.com/opinions/matt-miller-dow-15000-and-the-retirement-crisis-ahead/2013/05/08/b4636452-b7db-11e2-b94c-b684dda07add_story.html?hpid=z3
 
6
ShorebreakShorebreak2,367 posts since
Apr 6, 2010
Rep Points: 12,602
1. Thursday, May 9, 2013 - 7:15 AM
Nice avatar, SB; giving me some headache though.:-)

"So they’d add a new universal flat benefit to Social Security to supplement the earnings-based benefit that exists now. This new flat benefit would roughly equal the poverty line; when combined with the existing system, the average worker would have 60 percent of his or her working-age income replaced, versus 40 percent today. One way to fund it would be through a chunk of the proceeds from the value-added tax that’s almost certainly coming in an aging America. Canada, Japan and Luxembourg apparently do something like this today."

First, savers, by definition, is not stock market investors (those investors' money has gone with the 2008 bear market).  Those who are prudent with some savings do not have much in the stock market.

Second, enhancing Social Security is a nice and admirable dream; dream on (VAT or not, it's not going to happen with the American politics and protectionism of the rich):D 
3
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
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