Our retirement systems is broken and needs fixing, Social Security would be solvent, if the government wouldn't be permitted to raid the trust fund for normal budgetary obligation. In addition, things such as limited means testing and raising the retirement age would prove immensely beneficial as well. These are modifications to the current system that would solidify Social Security for many more years to come.
However, the biggest fallacy to our system is the current 401K system. We ask private individuals to say for retirement and manage funds they contribute to gain to prepare them for retirement, something that an overwhelming majority of Americans are not prepared to do, or have the expertise to do so. Additionally, huge fluctuations in stock market performance during the past quarter century have devastated 401K accounts.
What are we to do? Is the Ryan plan to privatize social security going to preserve our retirement system, when today over 75% of Americans have inadequate retirement savings today and have less that 40K in their retirement accounts. Sure privatization sounds great, but how will it protect Americans from devastating losses. How can we expect Americans to manage their accounts when they can't do it today?
The worst idea since slavery, social security.
Bad idea? What basis that you make that assertion. Do you realize how many seniors would be living in abject poverty without it. Social security does work and it works well.
He may be facetiously alluding to Allen West's remarks about social security=slavery. I think there was another politician who made similar remarks, though I can't recall his name.
I think SS is fine as long as we give the adults the option to "opt out". I have been contributing well over ten grand a year for decades, not to mention the millions that I have contributed to the accounts of others as an employer. I have no illusions that I will ever get a single nickel back, Why should I be forced to contribute to contribute to a Ponzi that will never return a penny to me?
Social Security, like most Ponzi schemes, only works when the new money coming in exceeds the old money going out. That was fine during the time that the baby boomers were putting into, and not taking out of the system. With the anemic growth of the GDP, less workers maxing out their contributions, and millions of boomers retiring, the system will be in crisis before we know it.
Of course we all know the solution, Tax the rich. That's always the solution by the left. Well guess what, I accept the fact that I have already been fucked out of millions and I will continue to pay my thirteen or fourteen grand a year personally, for as long as I continue to be active in business, but if the left tries to hit me up for more money, I am going to go all Mitt Romney on them and I will figure out a way to not pay shit, even if it means closing up shop and/or zeroing out my "earned income"
Simply ask them whether it works or not? Then tell them, you are going to stop it from next month because it is broken so it is useless and does nothing?
See if you can get out there with your life intact!
where it comes from....as grandma pats little willy on the head..
Americans are dumber than shit, and if you leave them alone to invest for the future, they'll find a way to fuck it up. And as a conservative, I support Social Security because of that reason alone.
I have no idea what you are trying to say in the last sentence of your 2nd paragraph. The key design of the 401K is payroll deduction, which by default fosters dollar cost averaging. And whether someone started a 401K 25, 15, 10 or even 5 years ago, and they kept up their contributions, they would definitely be ahead of the game. But that assumes they don't do anything stupid, or they could be afflicted with the debilitating disease called Marikoditis. This disease manifests itself through continuous disregard of common sense, followed by financial decisions that would send a Suzie Orman into an early grave.
Since the average American really is so stupid where it comes to money, any one who doubts me can simply look at the stupid ideas floated here for proof, I am reconsidering my attitude on what and what is not a suitable investment to be held in an IRA or 401K. Their are some very complex investment vehicles that are now "IRA approved" believe it or not as an oil man I can actually accept qualified money to be used in drilling deals if I chose, (I choose not to accept those types of investors personally, just because it's legal doesn't mean it's prudent), can you really imagine letting Joelunchbucket or someone with the business acumen of someone like Willy (sorry Willy) invest their retirement money on an oil well with the likes of me?
Maybe the public really is too stupid to take care of themselves and the Commies have had it right all along? Where's Charlie when you need him? lol
...and yet strangely enough, it keeps on working. Bump the FICA cap up by a few thousand dollars and any long term budgetary problems are solved.
What most don't realize is any budget issues are short term. The baby boomers are retiring and the ratio of population to workforce has declined a bit. But the boombers will eventually die off, and more people will get back to work when the economy recovers.
People who say the only option is to privatize it have always wanted to privatize it anyway. They're not happy unless Wall Street takes their cut.
i seriously doubt bumping the cap a few thou will "ssolve the problem" but that does'nt make it a horrible idea. that's one thing we can do on the revenue side. however, the giver to taker ratio is going to explode soon and there are no real jobs for the givers.
-- Modified on 8/13/2012 7:31:53 AM