Rate of Return – Invest in Stocks Not Bonds
The USA Plan does not call for the taxpayers to invest in any financial instruments other than stock. This schedule illustrates that on average stocks earn four times more than government bonds. Therefore, the USA Plan specifically avoids US Treasuries, State and Corporate Bonds.
Most investors view stocks as riskier than bonds because they fluctuate more in the short-term.. but in the long run stocks out perform bonds by a factor of four. This is because bonds are debt and stocks are stakes of ownership in a company.
See the following schedules that support the Prosperity Commission’s USA Plan proposal.
• Retirement Benefits Compared
• Computation of America’s Net Worth of all “USA Accounts” 40 years after enactment
• Invest in Stocks Not Bonds
• Rate of Return on the S&P 500 Stock Index in 40-year Increments from 1871 to 2011
• The Magic 40 years ending in 1999
• Computation of Nest Egg and Monthly Check at Various Income Levels
• Computation of Nest Egg and Monthly Retirement Check for Average Household Income of $50,000