Over the past few years, the stock market has skyrocketed. Federal employees investing in the stock market fund of the thrift savings plan received a 40 percent rate of return last year alone. Obviously, that pales the 2.7 percent rate of return for Social Security withdrawals invested in treasury securities. There is no doubt the stock market has its highs and its lows. Yet, prudent and patient investors know the stock market is a sound investment for the long-term.
Stocks are only risky in the short term.
One in every four years, the stock market will have a negative rate of return. But, nearly all workers invest in Social Security for 20 to 50 years. Looking as far back as 1871, the stock market has averaged a seven percent rate of return. So we must look at the long-term investment period. And these periods include a World War, the Great Depression, and several economic recessions.