An opinion adopted by many is to consider social security in part closer you are to retirement. For example, if you are sixty years of age and plan on full retirement in five years, you should consider an analysis based on your current projected benefits. Even with proposed reform plans, preservation of benefits is a priority for eligible citizens age 50-55 and older.

If however you are thirty, it may be better for you to omit such projections. The result will be overfunded personal savings. Thus social security will be an added benefit and not benefit.

Consider troubling issues of 2004 OASDI Trustees Report: future scheduled benefits for today's young workers could be reduced by 27% or more if amendments to current plan are not adopted.

Young workers should take note of this report. Do not rely on social security and concentrate on personal savings.

In conclusion, you have a risky option—there is only one way to justify social security, don't save for retirement. If this is your chosen route, be prepared for difficult times ahead.

92% of portfolio performance may be attributed to Asset Allocation 6% to stock selection 2% to market timing (reacting to current events) If asset allocation matters most, how do we identify asset classes? Basically, asset classes may be separated by two major distinctions:

Stocks/Equity Bonds/Debt Stocks in U.S. may be further distinguished by:

Large Cap Value Large Cap Growth Small Cap Value Small Cap Growth

These divisions do not meet full array of asset classes for well-diversified investors. A broadly-diversified investor may augment market exposure, while enhancing risk control, by adding a range of asset classes such as:

Fixed Income/Bonds International Equity Emerging Markets Debt Emerging Markets Equity High Yield Bonds Money Market

All investors face primary challenge: "How will I be compensated for risk I am taking?" Asset allocation acknowledges investor risk. Wise investors take every step necessary to assure compensation for levels of risk they take. National elections now become prattle as corporate earnings and interest rates re-take Wall Street headlines.

*Wambling means "To move in a weaving, wobbling, or rolling manner; to turn or roll. Used of stomach."

In matters of style, swim with current; in matters of principle, stand like a rock." - Thomas Jefferson (1743 - 1826)

Copyright © 2004 A. Raymond Randall