Individual bonds lost value as well. Yes, if you held until maturity you would not have lost any money...just the increased dividend/interest that you lost by holding bonds paying less in interest. Its all relative.
And there is the challenge with SS and why I believe some believe the need to invest (perhaps not 100%, but some %?) of FICA taxes. The program can not be financially sound when we get paid back in 7 years what we spent a lifetime contributing. I'm not for upending the program; but believe the "use today's dollars to pay todays retirees (and disabled, etc...)" just can't work long term. I don't know the answer, but perhaps something in between what is done today and the privatization mumblings could be in order?
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Individual bonds lost value as well. Yes, if you held until maturity you would not have lost any money...just the increased dividend/interest that you lost by holding bonds paying less in interest. Its all relative.
Post: The Bond Fund Crash: What I Learned When “Safe” Investments Tanked
Link to comment from July 24, 2025
Might I ask the provider you chose? 4.75% appears attractive for the shorter term. I think I'd lean towards TIPS for the longer end.
Post: The unexpected detour to deccumulation, finding peace in fixed income
Link to comment from June 17, 2025
And there is the challenge with SS and why I believe some believe the need to invest (perhaps not 100%, but some %?) of FICA taxes. The program can not be financially sound when we get paid back in 7 years what we spent a lifetime contributing. I'm not for upending the program; but believe the "use today's dollars to pay todays retirees (and disabled, etc...)" just can't work long term. I don't know the answer, but perhaps something in between what is done today and the privatization mumblings could be in order?
Post: You versus Social Security – Quinn is betting against you.
Link to comment from April 27, 2025