What do ya'll think of Bush's plan to privatize Social Security? Will it work? Who does it hurt? Who does it help? I don't know that much about it and am wondering ya'lls opinion.
His "plan" is of little consequence. The plan still calls for robbing people of their money to pay for the irresponsibility of others.
Young folks better not depend on it to be there for them. Take this advice. When you get a job, start saving for retirement. Don't be dependent on the government. Most people I know who are looking at retiring soon (including me) wish they'd done a better job of planning when they were younger.
I just got back from lunch with my youngest son and that's what we were talking about. I told him that saving is a habit and he needs to acquire that habit. For every dollar you make, put 10 cents away. If your paycheck is $500.00 put $450 in checking and $50 in savings. He said "but I can't afford it". I told him he's not throwing the money into the trash. It's still his money. You will be surprised at how soon it will be a habit and you will have a few bucks in the bank that would have been spent on nothing. In 10 years, you'll have enough money to invest and try to turn it into some real money. In 25-30 years, it'll be the difference between an early retirement and working until you croak. Listen to the sage advice of an old man. :yelwink2:
Couldn't agree more SF. I just wish I could take the cash that's being stolen via Social Security and add that to investments that generate a return AND will be there when I'm ready to use 'em.
Yea, an IOU...:rofl: Money is taken from me, given to someone else, and I'm told that I will probably not get it back, and if I do, it will not reflect the time value of that interim period, and getting it all back is predicated on me making it to 142 years old, hence it's being stolen and this is the longest sentence ever.
So what's the solution? It would be political suicide to chuck the system. There has to be something the Govt can do that doesn't involve increasing taxes. Privatizing Social Security would put more personal responsability in the system, but that isn't really that good because when they are irresponsible the govt (aka our tax money) is just going to have to support them.
I have mixed feelings. The only proper way to fix social security is make the income equal the payout. Let the people decide. Higher social security taxes=higher social security benefits. Lower=lower, of course. Either we reduce benefits or raise contributions, this deficit spending business is crap. Now, replacing social security with an individually controlled investment account has both merits and faults. Already the government allows you to contribute to an IRA, Deferred Comp, or a 401 K plan where you can control your own investments, mostly in mutual funds. I have two such government-authorized plans but they have not done as well as my private investments. People may be disappointed in the small amount of return they would get from a SS-replacement plan vs. social security payments. They might be willing to pay higher SS taxes in order to keep the guaranteed benefits. What is important for youth or for anybody is to not put all of your eggs in one basket and don't expect SS alone to pay for your entire retirement. To save enough money to retire comfortably a person needs to have: 1. A pension or social security (or both) that gives a guaranteed payout. 2. A second paycheck-deducted, tax-deferred investment account like an IRA, a deferred compensation 457 plan, or a 401K that you can control the investments. You can make or lose money depending on your situation. 3. A private investment portfolio with a financial advisor. This is where you will make your money if you pick a good one. 4. A smaller online investment portfolio that you control yourself. This is how I know my advisor is better than I am. 5. Keep 3 to 6 months salary in a savings account, money-market, or a CD so you don't have to rob your investments if you get laid off or have a major medical bill. 6. Buy a house when you are young and pay it off before retirement. This is your most secure investment and will save you a fortune when you are living on retirement income. 7. Start saving money when you are 25, not when you are 40. Compound interest is a remakable thing. Anybody of any age or status that is relying on social security alone is going to be an impoverished senior citizen.
The obvious solution is to grandfather some people in for this free gravy train, and ween Americans off this paternalistic system run by hapless bureaucrats. In the process, they could stop robbing me, you and anyone else that has a job. If someone is too stupid to realize that they can't work forever, and there are no free lunches, then I have a hard time finding much pity. At least not government-mandated pity.
