I keep meaning to pass on responses to posts in the text, but I never seem to get around to it... well that stops right now!
ACK, hoisted on my own petard! Actually, no, I'm a huge fan of personal private accounts; I have an IRA, a 401(k) as well as my own private (fully taxed) account. Further, managed risk is exactly the idea behind savings; again, I must totally agree with you.My only problem with the whole solution being proposed was that it would solve (in some way) the SS shortfall, which it cannot. Further, there does seem to be something impossible to it. If it was that easy to get higher returns, wouldn't everyone do it? Anyhow, my net is that I think we already have a number of methods to offer private accounts; I have no (non-cynical idea) why the Bush Administration is pushing yet another one.For Bush's plan to eliminate the SS deficit overall, I love it! Yes, it's kind of a socialist redistribution of weath thing over time, but I honestly think it's the right thing to do. If you make enough money to be saving extra anyway, SS payments do not factor in as much to your retirement income as it does for the average worker. Since I can say that I'll be in that top category, I can say (as a clearly representative member of the top category since it appears that I'm so in synch with the rest of my top category folks (</sarcasm>)) take the extra money and give it to someone who needs it. I'm pretty comfortable with that.D
Whether you like private accounts or not, you've got to admit that there's something fundamentally wrong with investing long term in a zero beta investment. Isn't THE fundamental rule of savings to move from risky to non-risky investments as the individual approaches retirement? Combined with the fact that the SS Administration is theoretically managing a retirement portfolio for a hugely diversified population, wouldn't this allow us to take on even greater risks?
I'll rub your face in a nice concept you posted here once: "What would it take for you to change your mind on this issue?"
ACK, hoisted on my own petard! Actually, no, I'm a huge fan of personal private accounts; I have an IRA, a 401(k) as well as my own private (fully taxed) account. Further, managed risk is exactly the idea behind savings; again, I must totally agree with you.My only problem with the whole solution being proposed was that it would solve (in some way) the SS shortfall, which it cannot. Further, there does seem to be something impossible to it. If it was that easy to get higher returns, wouldn't everyone do it? Anyhow, my net is that I think we already have a number of methods to offer private accounts; I have no (non-cynical idea) why the Bush Administration is pushing yet another one.For Bush's plan to eliminate the SS deficit overall, I love it! Yes, it's kind of a socialist redistribution of weath thing over time, but I honestly think it's the right thing to do. If you make enough money to be saving extra anyway, SS payments do not factor in as much to your retirement income as it does for the average worker. Since I can say that I'll be in that top category, I can say (as a clearly representative member of the top category since it appears that I'm so in synch with the rest of my top category folks (</sarcasm>)) take the extra money and give it to someone who needs it. I'm pretty comfortable with that.D