Is private investing outside of Social Security risky?

2016-04-28T15:57:00-04:00

Wondering how privatization of Social Security might affect how much you receive in retirement. The My Social Security site for me total amount paid in to date is $203,000 over 41 years and I still have a few more years to go. Wellington Fund has been around since 1929 ave return is 8.23% a year. At age 63 annual dividends $2,334, at 65 its $2,797 without touching the principal $1,243,529.

Response by TSgt David L. made Apr 28 at 2016 4:06 PM

2016-04-28T16:06:20-04:00

I don't see it any different than the TSP.

Response by CPT Joseph K Murdock made Apr 28 at 2016 4:33 PM

2016-04-28T16:33:30-04:00

If an investor has a lot of time before retiring, they would be a fool not to utilize the stock market for the capital gains.

Response by MSG Brad Sand made Apr 28 at 2016 4:44 PM

2016-04-28T16:44:42-04:00

It is all about managing risk and making sure you are aware of your time line.

Response by MSgt John McGowan made Apr 28 at 2016 5:03 PM

2016-04-28T17:03:58-04:00

MGYSgt. investments can go either way now. Wellington seems like I have heard of it before. I have a a 401K in a stock with Vanguard Group. I have done very well with Vanguard, not so much with another fund with another investment fund. So it's a gamble, if you do your homework it can be very rewarding. So good luck and you can always start out small.

Response by CPT Private RallyPoint Member made Apr 28 at 2016 5:51 PM

2016-04-28T17:51:36-04:00

There is a misconception in this question. Social Security isn't a retirement plan by itself. It should replace about 40% of your income but I will add most people withdraw more then they put in. However, it's unfair to compare it to investing, better to compare it with CDs or bonds.

Response by SSG Private RallyPoint Member made Apr 28 at 2016 7:19 PM

2016-04-28T19:19:12-04:00

Social Security should be one leg of your retirement plan, your not going to have a very comfortable experience trying to sit on a chair that only has one leg. Add a solid 401K, a military retirement and a home that is paid off and I'm fairly certain that money will not be a big issue when I'm ready to retire.

Social Security is not where I want my money exposed to a lot of risk, that's what my 401K is for...

Response by CPT Joseph K Murdock made Apr 29 at 2016 2:45 PM

2016-04-29T14:45:57-04:00

The stock market in general is risky, but it smoothens out over time.

Response by Sgt Robert Novotny made May 5 at 2016 11:35 AM

2016-05-05T11:35:36-04:00

I'm a financial planner, and with social security I show 30% of income replaced in my plans. Being diversified, starting early, and keeping consistent are what my cornerstones of planning. If any of you have simple questions, or complex, about this - please feel free to connect and reach out! Advice is always free and knowledge is power.

Response by SPC Jerry Crain made Apr 27 at 2017 11:11 AM

2017-04-27T11:11:52-04:00

Any investment is risky. The first thing you should do is to diversify. Don't put all of your eggs in one basket. There are many small businesses like mine looking for small investors to start or expand there business. Now is a good time to invest but spread it out to reduce risk.