Privatizing social security. Will it take away from SSI? Where will people invest their money?
Answer:
In 1936, the federal government published an informational pamphlet on Social Security. It stated:
"…and finally, beginning in 1949, 12 years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year. That is the most you will ever pay."
http://www.ssa.gov/history/ssn/ssb36.htm.
--------
Social Security is a multi-trillion dollar lie.
People will know how to invest their money because when left alone by politicians they always find a way, and it is almost always better. People learn how to drive. People learn algebra. People learn how to use computers and the Internet. Why would anyone assume that people are too stupid to learn how to invest their own money. Is it not arrogant to assume they need their hand held all their life by the government.
-
Young people today will receive a return on the SS investment of 1.5% or less. Simply look up the CD rates at the banks and credit unions in the area. I can get a CD with a rate of return of 5% right now. In your debate ask your opponent to explain how 1.5% is better than 5%.
-
I have no moral obligation to people on SSI..
I can say with certainty that the money I am forced to pay into social security would give a better return if I had it in a typical high yield savings account.. AT THE LEAST! I'd even take 10 year government bonds!! 4.5% beats social security! simply because we all don't want to live to 80 or 90 or 100 years of age.
Yes, what happens when people invest their life savings poorly?
By the way, there are people who collect more from Social Security than the money they put in: people who are totally disabled as young workers, people who earn minimum salaries below the SS benefit threshholds, etc.
Keep in mind that the original proposal to privatize SSI was merely to add the OPTION for folks that wanted to control a portion of their SSI money. Folks would not be forced to control their SSI.it would merely be an option for a portion of their money.
I hate that "how will folks know how to invest their money" question they asked you. To think that the government can do a better job with my money than I can is crazy. Why stop at SSI? What makes anybody think the government is so good with managing money? They've got a terrible track record.
Where to invest? I suspect their would be a selection of mutual funds similar to a 401(k) or the government employee thrift savings plan.
Yes, it will take away from SSI, somewhat. But look at it this way - SSI is basically a great, big, Ponzi Scheme (look it up) and is doomed to collapse eventually.
We need to be teaching our kids a lot more about money, investing, and finance, when they are in school - basic economics! How things work, and WHY government creates more problems (in the long run) than it solves.
Kids need to learn about spreading the risk with mutual funds, how to read a balance sheet (hey, how many of you ADULTS know how to do that??) and how to let their money make money for THEM. Social Security is just about the absolute WORST return on your money you can get - besides a cookie jar under your bed.
I have no clue!
to keep it simple, you would have to follow some specific guidelines, but you can get a better return at least theoretically then letting the government invest this.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: