Friday, April 30, 2004

We’re all C- students

Filthy Lucre

Today in Slate, an argument against individual investment Social Security accounts.

The short version:

Average yearly return of US stock market over last 20 years: 12%
Average yearly return on holdings of individual holders of Vanguard 401(k) accounts: 4%

In general, institutional investors and trustee investors do a good job, Joe and Jane blow do a terrible job.  Of course, this has far greater implications than just it maybe being a good idea to keep the Blows from meddling in their SocSec porfolios, but that’s the hot button issue of the the day, so I’m gonna lean on that button ‘til Buckethead squawks.


Posted by Johno on 04/30/04 at 05:36 PM
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