11-04-2004, 06:49 PM #1
Bush's plan to privatize social security
What do you guys think of it?
11-04-2004, 06:54 PM #2
It could be a great thing, its very likely that there wont be any money left in social security in the next 20 years... my problem is, if we werent in such a deficit then this wouldnt be necessary.
11-04-2004, 06:57 PM #3Originally Posted by EastCoaster
Social Security was in trouble even when we had the Clinton style suprplus. The problem lies in the fact that when calculations were done for S.S waaaaaaaay back, they didn't account for inflation, assuming that seniors would only need X amount of dollars to live on, but for example in 2020, thats not going to be enough to cut it.
11-04-2004, 07:03 PM #4
You're very right.
I dont think a lot of people know what it means when you say privatize social security, so for the benefit of anybody who doesnt know I'm going to briefly explain what that means.
If you support the idea to Privatize social security then you beleive that the government shouldnt be in control of the money, but controlled by you. You can invest into the stock market or other means of investment with your social security money.
If you're against it then you think the government should keep your money under federal control.
Here are the pro's & con's to privatized security.
If you invest it, you can very well double your money.... heck you might be making more money in your retirement years than you did during your working years. But of course there is a risk, just as when you invest in the stock market or anything else. You may lose... you may very well possibly lose all your money.
My question is.... with privatized social security they are letting people invest, which I would gladly exercise my right to do so. But what about the people who are investment ignorant? Does there money just sit there?
11-04-2004, 09:16 PM #5
either way please people look out for yourselves and your families. Get yourself an IRA, Roth IRA, contribute as much as possible to your companies 401k,invest in low risk mutual funds, hell dare i say even US Treasury bonds! You gotta diversify your retirement portfolio or youll be bagging groceries till the day you die.
11-05-2004, 05:29 PM #6
Privatized social security is a bad idea, aside from savings in admin costs and inflated overhead there is really no good reason to go private in the case of a defined benefit program. The reason this idea even floats around is becasue people forget that it is not a retirement plan but a form of welfare for senior citizens (stop laughing, it's true). It exists in it's current form because only a government has the ability to always make payments and raise funds (via taxation) should actuarial projections pan out poorly or economic or political crises severely alter future outcomes. Some things should be run by the public sector, and welfare is one of those things.
11-05-2004, 05:45 PM #7AR-Hall of Famer / Retired
- Join Date
- Aug 2001
- Wherever necessary
government will still controll the funds - the difference is that you have the choice to invest them in stock or bond index groups - much like a federal retirement program - its a great idea and will give a lot of money to capital markets, creating a new boom in startups and investments - plus EVERYONE will be an "owner" in society, not just middle class, etc - and finally, that money is YOURS, when you die, your beneficiary gets it unlike social security today
11-05-2004, 06:15 PM #8
Privatized accounts would create millions and millions of new accounts that would be so small that they would take more administrative $$$ to keep track of than they'd be worth.
If the gov't isn't going to get the money to pay for current and future needs, the tax may as well just be cut, and let individuals invest it themselves (or not, and bear the consequenses).
11-08-2004, 06:04 PM #9
They need to outlaw those executive orders that allow them to pull billions out of the SS funds. My brother is a district supervisor for SS. Clinton alone pulled out over 50 billion, my brother was telling my dad if they'd just leave the money alone SS would be okay. Don't get me wrong they've all done it, once it privatized it would make it harder for them to pull from, was my understanding.
11-08-2004, 07:06 PM #10Associate Member
- Join Date
- Apr 2004
ok privataize SS...cool i can control my money .
Now that we dont dont put money into the account the seniors are withdrawling from now we have a 4 trillion dollar problem . Either we kill all the old people or pay for them and our "new accounts".
were just fu[ked .
11-08-2004, 09:28 PM #11
Actually, the best way out of this mess is to raise the age at which SS benefits start. When SS first started, people didn't live as long as they do now, so they only got benefits for 10 years or so. Now that life expectancy is up around 80 or so, they really ought to start benefits around age 70 or 75.
Won't be many politicians wanting to vote for that, but it's the logical way out of the problem. Can't really cut the benefits, but since people are living longer and healthier, it only makes sense to postpone benefits.
11-09-2004, 09:50 AM #12
Actualy raising the age won't help for long if it helps at all, there's not enough of a new generation to support SS. Plus think about this people that are here illegaly pay into the system but will more then likely never pull from it, where's that money going so in reality there should be enough money, but the government keeps taking from the fund. My daughter has someone that is using her SS#, we tried to get something done to stop this person and they told us there was nothing they could do about it. We get letters from collection agency for a guy that is using my wifes SS#, we've tried doing something about with no luck. I think the quicker we get the money out of the governments hands the better off we'll be.
11-09-2004, 09:58 AM #13
I think it is a good idea to privatize it. I don't know the details but I would assume the investments would have to be prequalified by the Gov't which give options but still gives them the oppportunity to corrupt it in some way ie: bad investment choices because someone got some campaign $ on the side or whatever.
Either way it can't be much worse in the end for us than it already is.
11-09-2004, 10:28 AM #14
You think fraud is bad now........just wait until the brokers and investment bankers get ahold of EVERYBODYS retirement......they will steal it all folks.......
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