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Originally Posted by gideongallery
you really have to read the plan my friend the short falls comes about if you assume that you only get CD interest for the privately invested social security plan.
If you use a standard index like standards and poor then the the short fall gets pushed back to like 120 + years.
and if they do better than the average (more than 75% of the mutual funds out there) it solves the problem completely.
this is democrating number crunching like calling a 500 million dollar increase in funding a cut. |
How are you wrong? Oh let me count the ways.
75% of mutual funds beat the standard and poor's index??
That's total bullshit, over 90% of mutual funds can't beat the index consistently, that's why lots of people buy index funds.
Private accounts do NOTHING to fix the solvency problem in social security.
The money that comes in today in taxes goes out today in order to pay benefits.
Retirees who are currently receiving benefits paid into the system, but the money they paid in has been spent long ago for benefits for previous retirees.
Bush's "partial" privatization scheme will put us 4 TRILLION dollars in debt, in addition to all of the debt he's already responsible for.
That's TRILLION with a T. We would have to borrow that much in order to continue paying out benefits, since today's payroll taxes would be diverted into these "private accounts"
So basically privatization of social security is the equivalent of going to the bank, getting a loan, and then using the money from the loan to invest in the stock market, and hoping that you come out ahead in the end.
How many financial experts would tell you that's a sound thing to do?