Do you feel sorry for people who think social security privatization is bad?

[Thomas]

Here are the arguments I've heard against this:

WALL STREET WILL STEAL THE MONEY - That's not how brokerage accounts work. You control 100% of the money. Wall street cannot legally or physically "steal" the money.

GOVERNMENT CAN INVEST IT BETTER - Social security's rate of return for current retirees is -1.27%. A typical mutual fund is around 8% a year.

IT'S WRONG TO FORCE PEOPLE TO INVEST IN THE MARKET - No one would force them. It's only 'in the market' if you put it there. Otherwise it just sits in the private account, the only difference being the government can't take it.

IF IT'S SUCH A GREAT IDEA WHY IS THE GOVERNMENT AGAINST IT - Because when they set up SS they set it up as a tax, not a retirement program (Google this and watch your mind get blown). That means every cent is auto-funneled into the general fund. This is why Congress hates it...because they wouldn't be able to steal it for their own purposes.
Matthew - That's how 401ks work currently. But I wouldn't even be opposed to not allowing that. Force them to keep the money in, but make it private so the government can't funnel it into the general fund. Make it so YOU control 100% of it and no one else.
MTR - Why would you associate 'ss privatization' with 'forcing people to buy risky hedge funds'? That makes no sense.

[Lois Griffin]

well.......

sord of.

Social Security is actually a better deal than you might realize if you take into account how it's caclulated to benefit lower-income people.
like someone working part-time making 10k/year will see 90% of their income in retirement.


I'm not anti-stock market..........(I invest in stocks a lot myself).......
but leave 401ks separate from social security.

social security is not meant to be put at the swings of wallstreet - it's meant to be there for future generations.

We need a guranteed pension that adjusts for inflation.


I know stocks generally rise an average of 8% per year..........
but how do you know that pattern will continue?
I mean, I think it has a pretty good chance of continuing.........
but what happens if there's another world war or another great depression? I mean.....
at least social security provides some guranteed safety net.

[MTR 2.0]

A roll over option maybe.

But people should not be forced to pay into a more risky private sector hedge fund.

[deepAssassin703]

how about i get a refund for what i paid in.....no interest needed.....and i stimulate the economy........

[jaker]

I have done a lot better on the money I invested for myself than what an getting on what I was forced to invest in SS. Anyone under 50 should be looking for ways to avoid putting all your money in SS because the return will be even worse. The govt has borrowed something like $4 TRILLION from SS and is unlikely to ever be able to pay it back. Benefits will have to be reduced.

[tinylanguage891]

No but they obviously don't understand it is a ponzi scheme. They are to brainwashed.

[Alias]

Wasn't that the case before 1934? And didn't people lose everything and wind up destitute?

[Scott]

Good points!

There is zeo $ in the so-called SS "Trust" Fund. The Teasury has "borrowed" and spent every dime we have ever paid into it.. Die soon or you won't get a dime from SS.