{"id":8878,"date":"2023-09-08T17:59:58","date_gmt":"2023-09-08T17:59:58","guid":{"rendered":"https:\/\/prosfunds.com\/finance\/how-the-social-security-trust-fund-can-be-bolstered-by-investing-in-stocks-an-alternative-view\/"},"modified":"2023-09-08T17:59:59","modified_gmt":"2023-09-08T17:59:59","slug":"how-the-social-security-trust-fund-can-be-bolstered-by-investing-in-stocks-an-alternative-view","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=8878","title":{"rendered":"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View"},"content":{"rendered":"<div>\n<p>Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade.<\/p>\n<p>The good news is that much can be done to fully fund Social Security well into the future. \u201cInvesting some of the Social Security trust fund\u2019s assets in equities (stocks) has obvious appeal,\u201d notes a recent paper by the Center for Retirement Research at Boston College (CRRC).<\/p>\n<p>\u201cEquity 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.\u201d<\/p>\n<p>Sure, stocks can earn higher returns than government bonds most years, but what about market crashes and recessions? Remember 2008-2009, when U.S. stocks at one point tanked about 40%? The CRRC\u2019s authors argue that a prudently managed, diversified portfolio could mitigate risk.<\/p>\n<p>\u201cThe real world provides a convincing case that governments can invest in equities in a sensible manner,\u201d the paper notes. \u201cCanada has a large actively managed fund, follows fiduciary standards, and uses conservative return assumptions. In the United States, the Railroad Retirement system has also invested in a broad array of assets without interfering in the private market, as has the Federal Thrift Savings Plan, where the government plays an essentially passive role.\u201d<\/p>\n<p>How would a diversified portfolio be managed? It would be guided by strict standards, much like a modern institutional pension portfolio. Not all of its eggs would be in one basket. Returns could be higher with marginally greater risk.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>\u201cThe bottom line is that the Canadian investment initiative has paid off, while addressing the concerns of critics. Investments represent a small share of the Canadian economy; they are governed by strict fiduciary standards.\u201d<\/p>\n<p>In any case, most critics of Social Security\u2019s current funding system agree that something needs to be done to bolster the trust fund, which may include politically difficult measures such as cutting benefits or drastically raising payroll taxes on today\u2019s workers. A new funding program needs to be enacted relatively soon.<\/p>\n<p>\u201cBut one critical component is currently missing: Social Security no longer has a sizable trust fund to invest,\u201d the study concludes. \u201cAnd rebuilding the trust fund through additional taxes or borrowing may not be either wise or feasible.\u201d<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/johnwasik\/2023\/09\/08\/how-the-social-security-trust-fund-can-be-bolstered-by-investing-in-stocks-an-alternative-view\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade. The good news is that much can be done to fully fund Social Security well into the future. \u201cInvesting some of the Social Security trust fund\u2019s assets in equities (stocks) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8879,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-8878","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View | Prosfunds<\/title>\n<meta name=\"description\" content=\"Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade. The\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=8878\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View | Prosfunds\" \/>\n<meta property=\"og:description\" content=\"Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade. The\" \/>\n<meta property=\"og:url\" content=\"https:\/\/prosfunds.com\/?p=8878\" \/>\n<meta property=\"og:site_name\" content=\"Prosfunds\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-08T17:59:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-08T17:59:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/09\/1694195998_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"802\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/prosfunds.com\/?p=8878#article\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/?p=8878\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\"},\"headline\":\"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View\",\"datePublished\":\"2023-09-08T17:59:58+00:00\",\"dateModified\":\"2023-09-08T17:59:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/prosfunds.com\/?p=8878\"},\"wordCount\":400,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/prosfunds.com\/?p=8878#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/prosfunds.com\/?p=8878\",\"url\":\"https:\/\/prosfunds.com\/?p=8878\",\"name\":\"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View | Prosfunds\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/#website\"},\"datePublished\":\"2023-09-08T17:59:58+00:00\",\"dateModified\":\"2023-09-08T17:59:59+00:00\",\"description\":\"Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade. The\",\"breadcrumb\":{\"@id\":\"https:\/\/prosfunds.com\/?p=8878#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/prosfunds.com\/?p=8878\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/prosfunds.com\/?p=8878#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/prosfunds.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/prosfunds.com\/#website\",\"url\":\"https:\/\/prosfunds.com\/\",\"name\":\"Funding Factories\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/prosfunds.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/prosfunds.com\/#organization\",\"name\":\"Funding Factories\",\"url\":\"https:\/\/prosfunds.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"width\":780,\"height\":140,\"caption\":\"Funding Factories\"},\"image\":{\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/prosfunds.com\"],\"url\":\"https:\/\/prosfunds.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View | Prosfunds","description":"Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade. The","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/prosfunds.com\/?p=8878","og_locale":"en_US","og_type":"article","og_title":"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View | Prosfunds","og_description":"Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade. The","og_url":"https:\/\/prosfunds.com\/?p=8878","og_site_name":"Prosfunds","article_published_time":"2023-09-08T17:59:58+00:00","article_modified_time":"2023-09-08T17:59:59+00:00","og_image":[{"width":1200,"height":802,"url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/09\/1694195998_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/prosfunds.com\/?p=8878#article","isPartOf":{"@id":"https:\/\/prosfunds.com\/?p=8878"},"author":{"name":"News Room","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6"},"headline":"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View","datePublished":"2023-09-08T17:59:58+00:00","dateModified":"2023-09-08T17:59:59+00:00","mainEntityOfPage":{"@id":"https:\/\/prosfunds.com\/?p=8878"},"wordCount":400,"commentCount":0,"publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"articleSection":["Finance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/prosfunds.com\/?p=8878#respond"]}]},{"@type":"WebPage","@id":"https:\/\/prosfunds.com\/?p=8878","url":"https:\/\/prosfunds.com\/?p=8878","name":"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View | Prosfunds","isPartOf":{"@id":"https:\/\/prosfunds.com\/#website"},"datePublished":"2023-09-08T17:59:58+00:00","dateModified":"2023-09-08T17:59:59+00:00","description":"Future Social Security recipients like myself dread the thought that Social Security will run out of money to pay full benefits in the next decade. The","breadcrumb":{"@id":"https:\/\/prosfunds.com\/?p=8878#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/prosfunds.com\/?p=8878"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/prosfunds.com\/?p=8878#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/prosfunds.com\/"},{"@type":"ListItem","position":2,"name":"How The Social Security Trust Fund Can Be Bolstered By Investing In Stocks: An Alternative View"}]},{"@type":"WebSite","@id":"https:\/\/prosfunds.com\/#website","url":"https:\/\/prosfunds.com\/","name":"Funding Factories","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/prosfunds.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/prosfunds.com\/#organization","name":"Funding Factories","url":"https:\/\/prosfunds.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","width":780,"height":140,"caption":"Funding Factories"},"image":{"@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","caption":"News Room"},"sameAs":["https:\/\/prosfunds.com"],"url":"https:\/\/prosfunds.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/8878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8878"}],"version-history":[{"count":1,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/8878\/revisions"}],"predecessor-version":[{"id":8880,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/8878\/revisions\/8880"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/media\/8879"}],"wp:attachment":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}