Monday, December 10, 2007

Why Social Security should NOT be privatized.

Coworker: I put a ton of money into my 401K.

Me: What is a ton?

Coworker: 5%.

Yikes. People don't have a clue about how much retirement costs and need to be saved from themselves.

1 comment:

Shannon Morrison said...

privatize doesn't mean eliminate.

who said this?

"If you don't like privatizing Social Security, and I don't like it very much, but you want to do something to try to increase the rate of return, what are your options? Well one thing you could do is to give people one or two percent of the payroll tax, with the same options that Federal employees have with their retirement accounts; where you have three mutual funds that almost always perform as well or better than the market and a fourth option to buy government bonds, so you get the guaranteed social security return and a hundred percent safety just like you have with Social Security."