Rate of Return – Invest in Stocks Not Bonds

The USA Plan does not call for the taxpayers to invest in any financial instruments other than stock. This schedule illustrates that on average stocks earn four times more than government bonds. Therefore, the USA Plan specifically avoids US Treasuries, State and Corporate Bonds.

Most investors view stocks as riskier than bonds because they fluctuate more in the short-term.. but in the long run stocks out perform bonds by a factor of four. This is because bonds are debt and stocks are stakes of ownership in a company.