Per Diem Scam? Please explain the payroll calculations to me.

Returns over 1 month or even 1 year are meaningless in the context of a 30-60 year investment time horizon. It is like comparing an instantaneous mpg readout with a truck's average mpg over a million miles.

And reinvesting dividends is crucial to your success. Without it, that 9% S&P 500 return turns into just 4%.

I'm not saying that investing in a S&P500 index fund is the very best possible investment, but, as far as automated retirement plans go, investing $100/month into the S&P500 for 30 years will very likely beat 99% of managed plans.

 

Just what are the variable rates on dividends? Even at a 8% to 10% return rate(unlikely but let's say it happens), reinvesting this still wouldn't yield average rates up to 8% mostly due to market fluctuations(the chart I posted was 5 years I believe).... I know a couple of savvy day traders and they say if they can come out 8% to 10% they feel successful...

Hey, if someone is getting up to 8%... I want in, big time. You're right, the best real figures I tend to see are in the 4% range.

 

With all that said, if you do believe there is a possibility of the USA collapsing as a nation/civilization (and I have no intention of countering your theory), what value will 401Ks and other retirement plans/savings have?. I suspect that if the USA no longer exists (as we know it), then its currency will probably be worthless. Where does that leave "money" that isn't even tangible?. In other words, if paper money is worthless then money "on paper" will be even more-so.

If you already spend the other half of your tax savings on gold bouillon or investments in foreign countries then that answers my question.

 

If it was good for the driver they wouldn't offer it

 

It is a good thought, but businesses are much more likely to survive changes in government. Just look at Lorillard -- NYSE LO -- been around since we were British colonies. It has adapted from English, French, & Spanish currency, to Continental dollars, to US coins, to US paper money, to Confederate paper money, & back to US paper money. Good businesses adapt...

And it may be that whatever government supersedes the USA assumes some or all of the social security obligations, but with private retirement accounts you control your money. You can invest some or all in foreign stocks, bonds, real estate, etc. If you believe a government collapse is imminent you can decide to pull money out of Boeing and put it into gold or whatever. You can't take your money out of social security...

 

I guess I was thinking more along the lines of a total collapse of government such as a revolutionary overthrow, implementation of a dictatorship etc rather than just a change in political parties.

 

There is a valid point in what you are saying... However, we first must define some terms. Currency: Is a mode of monetary exchange, typically using a note which has little to no value. (Ex. a paper twenty dollar bill) Money: Is typically something of tangible value that will always have this or similar value... and it IS finite (Ex. a gold bar, silver coins).

As one can see... Currency can be increased merely by purchasing a printing press to print more money. To increase money, one need to find more of a item that has value, gold or silver.

Interestingly, money typically doesn't change value, for the most part very quickly. Currency is quite the opposite.

What I think you may be thinking is there could be a financial collapse with the U.S. dollar. I think it's unlikely for a number of reasons. 1)The U.S. dollar is tied to the Petrol dollar for world wide oil trade. 2)The large banking cartels are world wide.

 

I personally don't think it will happen either way, I was only asking DY to expand on his posts. If Social Security cannot be relied on due to the "potential" for the USA to collapse, then would private pension schemes and 401Ks be any safer. Money held in banks are offered a degree of safety by the FDIC, but if there was no longer an "F" as we know it, would the "DIC" still be in effect?. It's not so much the US dollar, but the USA itself. If there is no longer a Federal reserve to back the US dollar, then how valuable would it be to the worldwide banking cartelss?. It wouldn't be impossible for other oil producing nations and traders to start valuing barrels of oil in Euros or Ducats or whatever.

To my mind, you either have confidence in the US financial system or you don't. If I had an inkling that the financial system was on unsteady ground or could be in the foreseeable future, then I would want my money elsewhere. Either something simple as gold bouillon buried somewhere or investments/bank accounts in a foreign country that I had more confidence in.

Lack of confidence in the Social Security system due to a questionable government backing would also lead to lack of confidence in other parts of the US gov't regulated sectors such as banks.

 

Well 'Currency' is backed by the Federal reserve(which is actually for profit private multinational banks). The Federal Reserve also has nothing to do with gov't, it only has "Federal" is it's name(Ex. The parcel service Federal Express).

Now it get's interesting... Our tax dollars go directly into the Federal Reserve... Then, our gov't borrows money to run from the Federal Reserve(remember a private for profit bank)... The Federal Reserve then charges our Gov't interest on the moneys in borrows(our tax money)...

Interesting huh?

 

Very, I had no clue the Federal Reserve was a private entity.