Some Thoughts on Social Security

SEE HERE Social Security would not even be necessary if Americans were frugal and invested for the future. But Americans are not frugal. In fact given recent history they are not only profligate but totally irresponsible and their government models the process. If you're a young person and you think Social Security is going to be there for you then you have an actuarial problem and a significant case of over optimism. What to do? Get frugal! If Social Security turns out to be there that's great. If you're frugal and save wisely for the future then any Social Security you get will be gravy. But you better start now. In fact given the likelihood of some significant draw back in the stock market I'd be looking hard at what stocks will be recovery candidates.

My grandfather was an organist in vaudeville. Then he played the organ in the early movie theaters for a while until the talkies came in. He became a church organist for the bishop of Cleveland and ran the choir there. While he was in vaudeville he made a little money and put it in the stock market. Then 1929 came along and the market tanked. He had put his stocks in a lockbox instead of selling them. When my father who became his dad's executor, opened the lock box he discovered that most of the stocks had recovered and appreciated to a value of over $200,000. Not a fortune, but not chump change either. The bottom line is that investing early is more important than how much you invest. Make up a savings plan to put money aside regularly. Make it hurt a little. You'll get used to it. Put the money in solid investments. If I were you I'd look into ETFs. (Exchange Traded Funds) and become an expert on them.

Good luck. Don't expect the Social Security tooth fairy to pay off! It might but then it might be freezing in hell one of these days.