Another question about SS>If they privatize it and the market takes a dump, then what ?

Answer 1

DOes anyone realize how many times social security was going to dry up?
Several times they made this claim following every admin that spent money like a drunken gambler.
Once someone gets into office and figures out how to fix the budget, miraculously things will be fixed.

As far as privatizing the little 30% or whatever it was that people were suggesting, you wouldn't be able to make enough to make it worth it, but with so many people, it would definitely make the people investing it rich.

Answer 2

That is a real problem. Many people didn't understand the mortgage loans they were getting, the same will happen with investments. There are many people that will gamble or just will be unable to understand it. Also, in Chile where pensions were privatized, there is real problems-both politicians on the left and right agree. There is not as much in the pension funds as "projected", mostly because (surprise, surprise) the financial "managers" are taking large fees(that takes from the return) so people even end up with negative returns. So the large financial corporations make a killing and the people don't have a decent pension.

Bush largely modeled his plan after Pinera's at the Cato institute but it wasn't as fair. And Chile's plan isn't working so it probably is a bad idea. The SS runs a surplus but the government has borrowed and Bush doesn't want to pay it back. That is theft.

Answer 3

There's no government program that's more unfair than the SS. No matter for how long we've been paying into the SS, if we die and we don't have minor children, the government pockets *our* money and no family or relative can claim it, while there're cheaters pretending to have disabilities getting a monthly check while watching TV at home. I rather have my money gone because of a market crash than to know that smart-a** is enjoying what my family can't. It's MY money, I have the right to leave to who I want.

Answer 4

It's not going to be privatized. The vast majority of Americans want no part of that. Bush only floated that scenerio as an attempt to make his financial buds even richer. But if it were, and the market takes a dump, so does your SS.

Answer 5

Obviously none of the people who said the market will eventually recover were around during The Great Depression. There would be no problem with the boomers retiring if they would raise the cap on wages that are paid on.

Answer 6

The market will not stay down for the long term. But to hedge against that possibility your retirement should be scattered around (bonds and the like). No matter ho you invest your money at least some of it, unlike SS will be there when you need it.

Answer 7

Those who'd invested too heavily in the market in question would lose some of thier retirement savings.

And, the market is said to 'fall,' or 'tank' or even 'crash' rather than 'take a dump,' which has another, unrealated, idiomatic meaning.

Answer 8

The most sound choice is to have a portion privatized. Even 10%-25% can add up if managed properly.

Answer 9

They would be S>O.L. Bu that is not the point. The point here is the conservatives want to have the money put into the market to bolster it. But that is not the main point. If Social Security is privatized and you longer have to pay your 8%. So, that means your employer doesn't have to pay his 8% either. So, does he still match your contributions to your portfolio? I would say not. So, bottom line, just another way to give companies amother tax break.

Answer 10

Then your down money! This is a riot, one of the very same things that Democrats said to kill the idea. Its just amazing to me that people are to stupid to realize that the market will eventually recover and you will gain most if not all of your money back.

Yes, you might possibly lose some of it, but then again you stand to gain way more than the 2% return you get now.