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Time for California Muni Bond Investors to Take a Stand

California is a complete fiscal mess, and it's not going to get any better. The political interests are too deep in their positions for substantial change or negotiation.

I fully believe the politicians will stick to their status quo of voting to pay for "good" things with money that doesn't exist. Their incentives are set up to reward them (votes) for putting the state in default. By cutting services they will lose their jobs in the next election.

Don't fret though. Do you really think that a democratic executive and legislative branch will let any serious harm befall their largest single dedicated voting block? The feds can't say no to that.

ETFs For Retirement

This brings up an interesting question. What should the average American assume Social Security will be worth in the future? This is a critical question for retirement planning. On one hand, it won't completely disappear. The politics of the issue are too strong. On the other hand, the laws of reality dictate that it can't exist in its current form forever.

Personally, I assume that Social Security will grow at half the rate of inflation when planning my retirement in 35 years. I realize that this is completely unpredictable, but I am curious as to how other people are planning. What is everyone else out there planning for, SS wise?