Un-Social Security
Our generous and benelovent president has devised a plan that will not only save social security but in all likelihood save your retirement and guarantee every American a turkey at Thanksgiving. One month into his lame duck term and the man is pursuing his legacy. Apparently, spreading freedom to every country is simply not enough.
What do they say about a man earing gifts? It seems to apply to Dubya more than others. His grand plan involves allowing every American to invest 2% of their income set aside for Social Security into private accounts. A whole 2%... now there is a plan. He will also save you from those unsrupulous brokers, his friends, from overcharing you brokerage fees. Apparently, his messianic charm will convince them not to charge you any money. Also, Dubya will have a list of save places to invest your money. The man is Godlike in his ability to guarantee a positive return on yout money, better than T-bills, for example. Dubya is well known for his business acumen. Heck, he ran several oil companies into the ground and has never appeared to lose a cent of his own money. As you can see, how can his plan go wrong?
Let's start with some simple facts. 1) His plan will allow one at most to invest $1600. per year in private accounts. Yes, once you reach the social security limit, aout $76,000 in wages you are capped. So, $1600.is generous. Now, find me the broker who would be excited about $1600. There are not many. Especially, when you invest every pay period. They would practically have to waive their fees to make his plan work. 2) Social Security is a social program by definition. This is the equivalent of saying you may defer paying taxes if you could do a better job on your own of protecting the country, waging a private war, fixing the streets or policing the neighborhood. I am fortunate enough I may not have to rely on Social security for retirement. What right do I have to squirrle away private funds? Not much.....
One only has to understand the radical agenda, here. The one Dubya and his firends really have in mind. They do not want to partially privatize Social Security. They wnat to privatize it all. Once that happens it no longer exists. In fact, you are now cut loose and completely on your own. I hope your kids love you. If he really wants to save social security, he ought to do what Clinton suggested..invest the surplus in the market in higher returning funds. That would make sense.
Let's pretend for a moment Dubya really cares about your retirement. After all that is what Social Security is all about. The first step he can take is easy. Encourage young people to begin saving. Yes, encourage saving instead of consumption. All he has on the table is 2% of your salary. If you are in your twenties and cannot begin setting aside 2% of your salary, there is a problem. You do not need to wait to retire to be poor. You are poor, now. Now, I max out my social security contribution. Why should I be allowed to set aside $6000 into what amounts a tax free retirement account. I earn more than the cap. Why not allow everyone to increase their contriution to the maximum level, tax free. Think about it. Most Americans do not take full advantage of 401 K's. That is a problem right there. Again, encourage saving at a very young age...discourage consumption....
His plan is tepid and like every other plan masks the real agenda. So, beware of the man bearing gifts. Social Security is not in trouble, not yet....let Dubya have his way, not only will Social Security be in trouble but so will your retirement.
What do they say about a man earing gifts? It seems to apply to Dubya more than others. His grand plan involves allowing every American to invest 2% of their income set aside for Social Security into private accounts. A whole 2%... now there is a plan. He will also save you from those unsrupulous brokers, his friends, from overcharing you brokerage fees. Apparently, his messianic charm will convince them not to charge you any money. Also, Dubya will have a list of save places to invest your money. The man is Godlike in his ability to guarantee a positive return on yout money, better than T-bills, for example. Dubya is well known for his business acumen. Heck, he ran several oil companies into the ground and has never appeared to lose a cent of his own money. As you can see, how can his plan go wrong?
Let's start with some simple facts. 1) His plan will allow one at most to invest $1600. per year in private accounts. Yes, once you reach the social security limit, aout $76,000 in wages you are capped. So, $1600.is generous. Now, find me the broker who would be excited about $1600. There are not many. Especially, when you invest every pay period. They would practically have to waive their fees to make his plan work. 2) Social Security is a social program by definition. This is the equivalent of saying you may defer paying taxes if you could do a better job on your own of protecting the country, waging a private war, fixing the streets or policing the neighborhood. I am fortunate enough I may not have to rely on Social security for retirement. What right do I have to squirrle away private funds? Not much.....
One only has to understand the radical agenda, here. The one Dubya and his firends really have in mind. They do not want to partially privatize Social Security. They wnat to privatize it all. Once that happens it no longer exists. In fact, you are now cut loose and completely on your own. I hope your kids love you. If he really wants to save social security, he ought to do what Clinton suggested..invest the surplus in the market in higher returning funds. That would make sense.
Let's pretend for a moment Dubya really cares about your retirement. After all that is what Social Security is all about. The first step he can take is easy. Encourage young people to begin saving. Yes, encourage saving instead of consumption. All he has on the table is 2% of your salary. If you are in your twenties and cannot begin setting aside 2% of your salary, there is a problem. You do not need to wait to retire to be poor. You are poor, now. Now, I max out my social security contribution. Why should I be allowed to set aside $6000 into what amounts a tax free retirement account. I earn more than the cap. Why not allow everyone to increase their contriution to the maximum level, tax free. Think about it. Most Americans do not take full advantage of 401 K's. That is a problem right there. Again, encourage saving at a very young age...discourage consumption....
His plan is tepid and like every other plan masks the real agenda. So, beware of the man bearing gifts. Social Security is not in trouble, not yet....let Dubya have his way, not only will Social Security be in trouble but so will your retirement.
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