Go to Jeff Salisbury LWGate Home Page.From: BOB FORD <BOB_FORD@compuserve.com>
Subject: SOCIAL SECURITY
Date: Tue, 16 Mar 1999 10:30:51 -0500
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>From: "Tricia P" <tpete@hotmail.com> >Subject: Re: Social Security trap... = >Anyway, I, for one, am really wondering how "privatizing" >social security is really going to help it. I mean, obviously >some changes need to be made, but I don't know see how >trusting it to some stock brokerage or financial institution is >going to make it so much better, as some people seem to >believe. I can't say that I necessarily trust these folks >anymore than I do my government. A lot depends on what you mean by "privatizing" social security. I don't see "privatizing" meaning trusting it to some brokerage or financial institution. It seem reasonable to me that people should have the choice of what kind of retirement plan they want to participate in. The current social security tax on wages is 6.2 percent of the first $68,400. Shouldn't a person be free to choose what kind of a retirement plan their money goes into? = >Plus, there are some public services that I just don't think >belong in private hands, and this is one of them. Why shouldn't MY money for MY retirement be placed in private hands if I want it to be. I might do better than the government or I might do worse. Some people might want the government to provide for their retirement and some people might not. It should be their choice. >Another thing to consider is that a lot of people aren't going >to know how to invest these funds in their privatized IRA = >accounts. This is true. So who will suffer if they make bad investments in their IRAs? >I know people in their 20's and 30's who have their 403(b) = >and 457 funds invested in GIC's. The returns on those aren't >any better than the ones social security can expect. This is true. They will suffer the consequences for making bad investments. > I should add that I absolutely *don't* have a problem with >the gov't diversifying at least some of it's investments into >something other than treasury bonds, but I am dead sent >against privatization. I don't see how it's going to make = >the system so much better, especially if the gov't decides to >diversify it's investments, and it seems to me that someone >stands to make some big fat profits off this...and I bet they're >the ones who are screaming the loudest for privatization. The ones that will make some big fat profits off this are the people that will get Social Security benefits. Almost all state employee retirement plans give larger benefits per dollar paid in than does Social Security. How could this be? Simple, they just make better investments. If states can do, why can't the U.S. Government do it? Shouldn't we have a system where the money for a persons retirement is placed in a system of their choice? If a person wants to go with the current Social Security system, fine. If they think they can do better on their own, give it a try. If they are wrong, they will just have less money for your retirement. BOB FORD BOB_FORD@COMPUSERVE.COM http://ourworld.compuserve.com/homepages/BOB_FORD/ Editor of the 57-56-55 CHEVY LIST and TURBOGLIDE REGISTRY - -
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