Skip to comments."Personal-izing" Social Security - Private accounts can work, but they're not for everyone
Posted on 09/17/2010 10:14:21 PM PDT by Libloather
"Personal-izing" Social Security
Private accounts can work, but they're not for everyone.
Girard Miller | September 15, 2010
This is the fourth in a six-month series on reforming Social Security and Medicare.
As the midterm elections approach, the national parties are dancing around Social Security reform. A common theme among Republicans, conservatives and libertarians is the idea of allowing Americans an option to invest "their" money themselves. Many Democrats, claiming it will undermine the entire system, view it as a wedge issue favoring their candidates. The president's bipartisan commission on fiscal responsibility may consider this idea as part of a comprehensive, compromise Social Security reform proposal, although the politics of that outcome are murky, as I'll explain below.
Without taking sides, this column will present a middle way that could actually work. It's called a Voluntary Carve Out (VCO) and allows some younger workers to retain and invest a portion but not all of their Social Security contributions. I will use 1975 as the earliest birth year for eligibility, as it's too hard to make the math work for those who are older and have substantial earned interests in the current system. This also makes it clear which generation we're talking about here, as Baby Boomers are not included in or affected by this plan.
(Excerpt) Read more at governing.com ...
I’d like to point out that the Canadian Pension Program (CPP) is invested into private-sector programs.
However, I have problems with a quasi-government agency trying to invest trillions of dollars in the private sector, as would be the case for an American “CPP” program. I mean, what can go wrong? (eyes rolling)
Neal Boortz spoke a long time ago about a certain city in Texas where the employees were able to invest their Social Security money in the stock market and they did so well with their investments, the city withdrew the program. I can’t remember what city it was, but might be able to dig for it.
Of course, NOW, people are more and more convinced that the stock market is being manipulated and don’t trust it, so, it might not work now. (Sept 15-18th, 2008-—Soros, I’m convinced!)
How many people are unaware that the Social Security “lock-box” was raided YEARS ago and now only holds “I.O.U.s” from our great “representatives” in congress?
Thanks for post. Things to think about. Something has to change.
It’s called the “Galveston Plan”
I’ve been interested in it since I first heard about it.
There are other websites that discuss it. Pros and cons.
It sure sounds better than what we have now though!