Vinod, I wish such a fund were set up in lieu of the current Social Security system. That would, of course, require monetizing the government's current Social Security obligations, which will never happen. But I can still wish. Such a fund would provide a stake in US equities for each US citizen who paid into the system. Under the current system, there are no real earnings on funds that are paid into the SS "trust fund." Having those funds invested in private equities would allow much greater benefits for SS recipients.
As long as I'm wishing, what I'd really like to see is the whole SS system scrapped over time (again, after its debt is monetized). Current recipients would continue to receive what they are supposed to receive under the current system (with the annual COLA adjustments), but those who are currently paying into the system could be given the option to either receive the traditional benefits or have their actuarial share of those benefits rolled over into a 401k-like account with future "contributions" going into that account. Can you imagine any person with an IQ over 90 remaining in the current system with a 401k-like option available?
(Sorry if this is too "political." To me, it's basic economics.)
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Rob Adams
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Original Message:
Sent: 02-12-2025 06:55
From: Vinod Nair
Subject: sovereign wealth fund
what does the rational discerning members of this group think about the plan for setting up a sovereign wealth fund by us government. please try to be apolitical(i know it is hard). unlike the oil rich middle-eastern nations or counties like china which runs huge trade surplus, us does not have much wealth to manage. us government does not seem to have any wealth but debt. how does it affect the economy in general and what is its impact on our portfolios?
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🙏
Thanks
And good luck with your investments
InvestorNV | Boston | MA
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