Privatizing Social Security? Yay or Nay?

[ChibiHorsewoman]

[color=darkviolet]It's been going on a lot in the news lately, President Bush has been talking a lot about privatizing Social Security and giving younger people option of putting part of their paychecks into stock options or private funds because there's a good chance that by the time people in the US around our age retire there won't be any Social Security for us.

So do you think it's a good idea or a bad idea?

Given my generation's gotta have it now thing and the fact that I really have a hard time saving money I don't think that's really such a good idea.

I haven't done much research on the situation, but it doesn't look promising. The money in savings might have to go to something else in an emergency and you may not get the money back, or if you have a sudden impulse to go crazy and shop what woudl stop you from dipping in?

Plus it doesn't seem fair to the people who make less than $90K a year because those people don't have anything taken out of their checks for SSI and they have more disposable income.

The idea just basically sucks in my opinion, any one else want to jump on board?[/color]

[Heaven's Cloud]

[COLOR=INDIGO]I think that social security is in definite need of reform; however, I am still unclear about certain aspects of its privatization. Form what I have read, the details seem far too complicated.

I have been working since I was sixteen and I have had well over $20,000 sucked away from my total income and filtered into social security. It is disturbing that I may never see that money ever again because the government has done a poor job of investing it or has used it to fund other programs.

In a way the privatization of social security could be a good thing. The government isn?t giving you money to spend, they are giving you money to invest, in stocks of your choosing, markets of your choosing, or just a plain old savings account. It is like a forced IRA (retirement fund) that you are responsible for instead of the government. All in all, it makes quite a bit of sense?up to a point.

And that point hits when you are ready to collect on your hard saved social security fund. Once you hit those silver years the US government collects your social security funds and then pays you out an annuity every year. They chose how much to allocate and how those funds are managed once you are eligible to collect them. I am not sure how comfortable I am with that scenario because if you happened to invest in stocks that skyrocketed your potential to collect the full amount is nil. It also puts the money back in the hands of the people that screwed it up in the first place.

Anyway, Bush?s current idea has the potential to either really hurt America?s elderly or really bolster our economy.
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[QUOTE=ChibiHorsewoman][color=darkviolet]
Plus it doesn't seem fair to the people who make less than $90K a year because those people don't have anything taken out of their checks for SSI and they have more disposable income.
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[COLOR=INDIGO]I don?t understand what your meaning here is. Under the current manifestation of social security everyone pays into the system, and if the system is revised to Bush?s plan why would it matter if people making over $90,000 contribute to social security, everyone is getting an annuity out of their ?personal? account.

I also think you are very naïve thinking that a person making $90,000 has all that much more disposable income than a person making $45,000, especially when it comes to retirement. Everything is relative in terms of money. A person making $45,000 may have a job that gives a full pension plan after thirty years. This, coupled with a social security annuity may make retirement much more comfortable for the lower income person compared to the person that had a higher initial income but had to support their retirement on their own. From what I understand, under Bush?s program people that make high salaries are still eligible to pay into social security, it just isn?t required (if they don?t pay in they are ineligible to receive anything).
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[Morpheus]

It'll work if people invest in good companies like Wal-Mart or Coca Cola. Otherwise, most people that know nothing about investing will throw it away at a company that has cheap shares.