I think those in Congress should be allowed to park their money into a Boglehead style three-fund portfolio - with some percentage in bonds, some in S&P and the third portion in international stocks and you freeze the percentage at the outset of your term.
Each term you serve, you have a new opportunity to rebalance (based on risk you want to take on - less as you grow older), and that’s it. They can do dollar cost averaging into those three funds, but that’s it - it has to be at the same percentage split they decided at the outset of their term. No selling of any of these for their entire term - it’s buy and hold, baby.
That’s plenty of opportunity for them to still take part in the market - and they could dial up/down the amount of dollar cost averaging as much as they want and whenever they want (although those would get close inspection based on timing in the event of someone like Taco messing with the market over tariffs).
This is more than enough engagement with the market and plenty of opportunity to make money. Plenty of Americans do far less market engagement than this.
You mean like the Thrift Savings Plan (TSP) funds that Federal workers – but not politicians, for ‘some’ reason – already get their retirement funds invested in?
It’s funny how we’ve long since created an obvious solution here, but Congress has been unwilling to restrict itself to it.
I think those in Congress should be allowed to park their money into a Boglehead style three-fund portfolio - with some percentage in bonds, some in S&P and the third portion in international stocks and you freeze the percentage at the outset of your term.
Each term you serve, you have a new opportunity to rebalance (based on risk you want to take on - less as you grow older), and that’s it. They can do dollar cost averaging into those three funds, but that’s it - it has to be at the same percentage split they decided at the outset of their term. No selling of any of these for their entire term - it’s buy and hold, baby.
That’s plenty of opportunity for them to still take part in the market - and they could dial up/down the amount of dollar cost averaging as much as they want and whenever they want (although those would get close inspection based on timing in the event of someone like Taco messing with the market over tariffs).
This is more than enough engagement with the market and plenty of opportunity to make money. Plenty of Americans do far less market engagement than this.
You mean like the Thrift Savings Plan (TSP) funds that Federal workers – but not politicians, for ‘some’ reason – already get their retirement funds invested in?
It’s funny how we’ve long since created an obvious solution here, but Congress has been unwilling to restrict itself to it.