Privatizing Social Security has always been off the table for Congress. First, they think we are too stupid to manage our own finances. Second, if we were to create individual accounts for each of us, they could not get their hands on the monies. Back during the Clinton years, Congress borrowed against the funds. Any money that is not tied down is free game for Congress. When you go to your broker and open an account, they don’t put you in the pool of investor. Each person has their own account. Let’s do the same for Social Security.
So let’s see what the numbers look like if we did not run this huge Ponzi scheme and we let individuals manage their own SS fund. .
Wow… If let alone to manage one’s own retire income you can see by the chart the possibilities. Obtaining a return of 6% is very reasonable. That would give a retiree 1.4M vs. 428K at retirement. I understand that Social Security is a safety net and we don’t want individuals to blow their retirement. But accounts could be setup so investments are very conservative. Give people the opportunity to invest in CD's. At least get some return on your monies…..
What are your thoughts? Is privatizing SS a crazy idea?
Here are the numbers:
Tom holds a B.S. in Economics from Florida State University and a MBA from Nova Southeastern University. Tom has over 30 years experience in investing and economics. He has strong faith, love of country, and strong desire to help others. This has lead Tom to create and promote MonieStorm.