Tag: investing in equities
Social Security needs modest revenue increases and benefit cuts – not extreme borrowing. Larry Fink of BlackRock, in the Annual Chairman’s Letter to Investors, just endorsed the proposal by Senators Cassidy (R-LA) and Kaine (D-VA) to create a trust fund with borrowed funds to solve Social Security’s financing problems. This idea, which has been around…
Investing some of the Social Security trust fund’s assets in equities has always had obvious appeal. Equity investment has higher expected returns relative to safer assets, so Social Security might need less in tax increases or benefit cuts to achieve long-term solvency. On the other hand, equity investments involve greater risk and raise concerns about…
