From the President the other day:
“It’s the biggest tax [social security] a lot of people pay…And younger Americans are saying, ‘I’m not so sure I’m going to see it.’…Some youngster told me about the survey that said many young people are — think it’s more likely they’re going to see a UFO than get a Social Security check.”
If you are below 40 — give or take — you better figure a way to make some money in the markets independent of any Federal program. You will not be getting a check of substance (unless taxes are raised) from the government when you retire, so come to grips with that fact now and do something about it.
“Don’t you like the idea of people paying attention to their assets and watching them grow?…I think it’s an incredibly fantastic opportunity to spread that opportunity throughout our entire society.”
Trying to logically teach this to a population, 50% of which lives on Fantasy Island, is a hard sell.
Recent feedback to my post?
“With your social security entry in your blog, you stepped into a messy situation. Social security will be there for decades. That is a fact. Only Congress can change that and that is not likely. Bush’s solution to social security is buy-and-hope. Workers are forced to put their money into a fund. Probably an index fund or a bond fund. Then they have to hope the market is good to them for some arbitrary number of years. If not, they lose. I don’t see how you could endorse something like Bush’s solution.”
I am endorsing no plan. This is an issue of math. Compounding government bond interest? The math will take you nowhere. If you want a no interest investment put together by politicians who have no clue how to make money — be my guest! Otherwise — let’s all be honest and admit it is just a tax and not a viable solution for retirement years.