Social Security Trust

Summary


Regarding your editorial of Dec. 22, one of the most effective ways to deal with the alleged crisis in Social Security is to forget the complex, costly and risky individual private accounts. Instead, amend the law to permit the Social Security trust fund itself to hold common stocks in the broadest possible stock index funds.

Current surpluses could be used for this purpose until they reach a certain percentage of the total, perhaps in the range of 20 to 40 percent. The broadest possible bond index funds could also be substituted for the current special Treasury securities if that return is consistently higher. This would permit the trust fund assets to yield considerably more than the current 2 percent a year and help insure its solvency further into the future.

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Social Security Trust

The various legitimate ques...

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