Why not fund social security through the use of part of the "trust fund" each year to buy indexed annuities?
The Indexed annuities are fixed and can offer a guarantee of principle, while allowing risk-free gains linked to stock indices
Unfortunately, the "trust fund" surplus is spent each year in discretionary spending. So either the cost would be cut to save the surplus, or have to pay more to finance the gap. The trust fund is actually an IOU incorporated in the budget. Thus, when social security is operating at a deficit in 2017, spending on others will be cut or increased borrowing. The trust fund that supposedly brings us to 2040 or so, but only from accounting point of view – no money set aside. In my humble opinion, legislators are being nothing more than cross-strait fororward on financing social security. They are lying to your face.
http://www.CaliforniaAnnuityFAQ.com – COMMENTARY: ‘Safe’ Investments – How Risky Are They?
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