When the stock market took a nose-dive a few years ago, my husband's annuity lost $50,000.00. That is a lot of money to lose. Within this past year, it managed to go up slightly higher than what it was before the crash, but that is after years of quarterly contributions totaling nearly $2,000.00 a quarter, too. We do not contribute one penny to his annuity, the employer contributes all of it--and I wouldn't have it any other way. This is a prime example of why people should not be able to invest their social security contributions.

Luckily, about six months ago, I transferred the money into a different fund, a low-risk investment option, much like a money-market account relying mostly on interest and contributions rather than profits (and losses) from investments. About two months ago, we began receiving letters from the administrator of the fund indicating that we were not in an aggressive enough fund and that they were advising us to aggressively save for retirement. I scoff at these letters and toss them aside.

Just this week, the stock market lost, I believe, more than 200 points. This is due to all the speculation of the debt-ceiling and, more specifically, John Bonehead Boehner (who does he think he's fooling? His name is not pronounced with an "ay"--he is not a diphthong--maybe he is).

Not many people have the knowledge to handle a retirement fund, unless, of course, it is just a normal savings account. But, interest rates suck so badly that savings accounts are not profitable, so you need a heck of a lot of money in a savings account and also be able to keep it in there in order for a savings account to be enough for retirement.

The alternative is having some sort of pension fund, usually through an employer. But most people are slaves to either the administrator (who conveniently declare that they are not responsible for losses) or a board of directors deciding on where to invest the money (who also conveniently declare that they are not responsible for losses).

Is it safe? No, most definitely not. However, it is worth it if the employer is making all of the contributions. I've always considered the stock market and investments more to be like legalized gambling.

Greetings fellow favorite Democrat Jrachel. A word to the wise, I would steer clear of any long term bond instruments, Treasuries or otherwise, especially state issues, doubly especially California!

In a rising interest rate environment, the truly wise buy one month Treasury bills and roll them forward every month thereby catching the monthly rise in interest income. Long term bonds lose principle as rates rise, it will be totally devastating to any long term bond portfolio when the Treasuries are downgraded, I wish you the best! The Revolution is upon us Rachel, we are taking the welfare state back and restoring America.

The safety issue of pensions funds is dependent on whether they are public or private pensions. There are few private pensions that have not already been pillaged. Sorry to say but changing from defined benefits to defined contributions spelled the end of pensions in the private sector.

Public pensions, city and state are underfunded by trillions of dollars and will probably be covered by the Quantitative Easing 3, that is coming. This is the bailout of the free-spending states that use the fuzzy accounting of government.

As for federal government pensions, these are covered by the full faith and credit of the United States. There is no trust fund, there is no lockbox.