Time to Invest Social Security in Stocks?

In Creative fixes for US finances Jim Jubak offers that now might be a good time for the U.S. government to put some Social Security funds into the stock market. Here are the reasons for considering this move:

Buy low and sell high. Investing Social Security funds seemed to be a good idea during the bull market and near the peak. From a contrarian view, now would a great time to put Social Security money into the stock market.

Bailout retirement savings account holders. The U.S. government is bailing out banks, insurance companies and investment banks. Others, such as the auto companies, have requested money. Why not use some of the bailout money to directly help the taxpayer. Injecting Social Security funds directly into the stock market may help end the bear market, which has reduced retirement account values by over $2 trillion.

Overall, I think this is a reasonable idea to consider for a portion of Social Security funds. Doing so would offer two immediate benefits: 1) Show confidence in the U.S. economy and 2) Injects funds to replace money that has been withdrawn from stocks over the past few months It may even make Social Security solvent for the longer term, which would help everybody.

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This is not financial or investment advice. Please consult a professional advisor.

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