Gambling for Retirement
The dollar's at an all time low versus the euro today. The CIA is pessimistic about Iraq.
But the topic on NPR last night was social security reform. My long-time friend, a professional financial planner (and former Republican), tells me that letting people invest their social security money is a recipe for disaster. Another family friend who has lived off of his investments since the 1960s just found out that younger people think they can handle their own money better than the government. "I don't believe that," he said "for a second."
It's time to discuss alternatives. I think the Onion has offered up a plan at least as sound as that of the Bush administration. Any thoughts?
posted by Dan at 7:37 AM
3 Comments:
don't you see the pretentiousness of that point of view..."i'm smart enough to handle my own investments of course but the rest of you dolts aren't" with increasing numbers of workers investing in 401k plans, what is wrong with giving people the OPTION of self-directing part of their social security withholding? you strike me as well-informed (although somewhat misguided!) so don't tell me that you would not at least want the choice to make your own investment decisions...
December 10, 2004 9:59 AM
Everyone should be able to make their own investment decisions and plan for their retirement. Last time I checked, they could still do that. Just not with their payroll taxes.
Social Security was never intended to be a retirement program. It's an insurance program. You've got car insurance, right? Does the insurance company let you gamble away part of your payment? Sure, you could argue that it might make you wealthier in the long run (and better able to pay for damages), but if you get into an accident, the money needs to be there no matter what. Same goes for Social Security. If your investments fail or your retirement package becomes worthless after, for example, a corporate buyout, there has to be something left for you to fall back on. Otherwise you become a drain on society. Taxpayers, maybe family members, end up paying for you.
That's a real cost to the country, and it's one that SS was set up to minimize.
December 12, 2004 9:43 AM
For lack of a better place to put this link -
Here's an interesting article from Slate explaining why most investors fail:
http://www.slate.com/id/2110977/
December 15, 2004 6:31 AM
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