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According to Experts, Here's the Trouble With Social Security Privatization
Social Security privatization refers to a proposal that would switch the current U.S. Social Security system to one that allows individuals to invest a portion of their payroll taxes in private investment accounts. While the subject produces a lot of excitement, here's what experts say could go wrong.Image source: Getty Images.The stock market can produce dizzying fluctuations. While the ups and downs are as natural as the sun rising in the East, they may make less experienced investors quite nervous. For example, when a bear market arrives (another regular, natural part of the economic cycle), individual investors may get spooked and pull their money from the market, a move that can ultimately lead to financial loss.Continue reading
Social Security privatization refers to a proposal that would switch the current U.S. Social Security system to one that allows individuals to invest a portion of their payroll taxes in private investment accounts. While the subject produces a lot of excitement, here's what experts say could go wrong.
Image source: Getty Images.
The stock market can produce dizzying fluctuations. While the ups and downs are as natural as the sun rising in the East, they may make less experienced investors quite nervous. For example, when a bear market arrives (another regular, natural part of the economic cycle), individual investors may get spooked and pull their money from the market, a move that can ultimately lead to financial loss.
