People who are against market-oriented investments of Social Security surpluses appear to me to fall into two categories:
1) those who have a hidden agenda and play on the lack of sophistication of workers;
2) those who are not knowledgeable about stocks and bonds and are afraid of the unknown.
When a worker paying his FICA taxes understands that it is possible to minimize the risks by :
a) diversification of investments by using mutual funds;
b) investing for the long-term and thereby minimizing the impact of volatility;
c) using dollar-cost averaging;
d) using indexed mutual funds;
e) investing only in blue chip stocks and bonds.
Mr Archer alludes to 50 "low-risk" options, but has not yet shared with us the details of these investments. If they meet the above criteria, then I don't see how anyone can say that these are high-risk investments.
