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Privatize SS? Can someone give me info

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posted on Nov, 5 2004 @ 07:50 PM
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I am curious about the privatizing of SS. If in the future it's possible to opt out of SS and set up your own Personal retirement account how will that effect me being married but a homemaker. For example my husband will set up a private retirement account and when he dies what happens to the money? Does it come to me? I will be a stay at home mother and homemaker not contributing to SS or the personal retirement account. Can my name be added to his account in case of accident or death?

If anyone has any information for laymen please let me know. This is a very interesting prospect.

Thanks!




posted on Nov, 5 2004 @ 08:16 PM
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You want a concrete answer to a hypothetical situation in a program that is in itself hypothetical. This is not possible.



posted on Nov, 5 2004 @ 08:18 PM
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The details haven't been worked out, and frankly I think it's a very worrisome option. I invest in stocks, bonds, mutual funds and annuities and let me tell you it's a very chancy thing. The government guarantees you a pittance that increases each year, but I have little good to say about many of these options. In a bad financial environment (like, say, the past 4 years) even the best investments are not very good.

As an example, I quit on the mutual funds and moved money into a money market fund after finding that I had put in over $3,000 in one year... and at the end the fund had lost $4,000. I would have done better to put that money under my bed. I've held my own with stocks.

I think that you can get your husband's retirement account after his death -- IF you haven't divorced (Yet Another Reason why I'm a working mom!.) It's "right of survivorship."

What you REALLY need to do is start educating yourself. Might I suggest that you look at the Motley Fool site: www.fool.com

No hype, free to join, good articles, nothing to buy, and it may save your fanny.



posted on Nov, 5 2004 @ 08:22 PM
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I honestly believe that we need to ease off of the Social Security idea. We should all be working towards our retirement for our whole lives.

Social Security should be optional at first, doing an audit of existing payouts to ensure they should be on it.

We should move more and more money out of the Federal Government's hands and back into our own control.

I'm not sure why anyone would want the government to control their money for any reason.

It boggles the mind.



posted on Nov, 5 2004 @ 08:24 PM
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I respectfully disagree with Byrd on this one and believe that privatization is a good thing. I invest wildly in Mutual funds and over the last 5 years I have received a return of 27% throughout my portfolio.

Here are the numbers I ran a while back about the privitization of social security and why it was a good thing

www.abovetopsecret.com...



posted on Nov, 5 2004 @ 08:51 PM
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Originally posted by favouriteslave
I am curious about the privatizing of SS. If in the future it's possible to opt out of SS and set up your own Personal retirement account how will that effect me being married but a homemaker. For example my husband will set up a private retirement account and when he dies what happens to the money? Does it come to me? I will be a stay at home mother and homemaker not contributing to SS or the personal retirement account. Can my name be added to his account in case of accident or death?

Thanks!

It is an intriguing idea. My understanding is that you will be able to invest a portion of your SS contributions in one or more of a select group of investment opportunities. Some options will have higher risk than others, just as it is in mutual fund investing today.

But even if you are limited to investing in the lowest risk, lowest return funds, you will be a) controlling your own money (at least part of it), and b) getting a better return than you are today (0%).

You will not be opting out of SS, but you will have the opportunity to invest a portion of it.

As for beneficiary status, I don't see any changes being made to the current system. In other words, the surviving spouse is entitled to the benefits due from the deceased spouse.

Understand that there are risks associated with this, as it should be. It should be no different than investing in a private retirement account (401K, etc) as far as risk/return.

Opponents of this system (Kerry was dead set against it, BTW) say that it would cost too much to implement, since the way things are now, current contributions by the young to the SS system are being used to fund older members covered under SS. But it is a good start, and a good idea, and we need to start somewhere to fix the current system.

I hope this helps. Of course, this is only my interpretation of the proposal, and may be totally wrong. But I am reminded of the old story that if you were to invest all of your SS contributions in a simple bank account paying 5% interest, you'd be able to retire as a millionaire at age 65.




posted on Nov, 5 2004 @ 09:09 PM
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I don't think this idea (which I agree with) is really designed to fix social security, but to ween people off of it over a period of generations. SS was never meant to be anyone's primary retirement income and I don't know of anywhere in the Bill of Rights where it mentions providing for everyone's retirement. If I'm not mistaken, when it was first implimented, it wasn't that common to live past 65 and a much higher % of people never attained the age to draw it, so it worked due to the obvious surplus this would generate. Needless to say, things have changed. Some people draw SS for a long time after age 65 now.

SS is a pyramid scheme. We are very close to the bottom of it where the very bottom layer ends up bearing the weight of the whole structure, and collapses under it. Something like this needs to be done. I think President Bush is fully aware of this and is actually trying to make sure that there is something left to us that the government can't come get from you. If not, then this will end up breaking the middle class more completely than anything it is feared Bush would do.



posted on Nov, 5 2004 @ 09:15 PM
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I like the Idea but those of use that are close to retirement should get our money plus interest to invest. I just dont want to lose everything I have invested so far, and dont want to get screwed out of the intrest the Government has made off MY money



posted on Nov, 5 2004 @ 09:20 PM
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Originally posted by Byrd
The details haven't been worked out, and frankly I think it's a very worrisome option.


What's a more worrisome option is for America's youth to be *forced* to pay thousands and thousands of their own dollars into something that will be bankrupt before they'll be able to use it themselves.

The Cato Institute has a plethora of answers for you favouriteslave.



posted on Nov, 5 2004 @ 09:21 PM
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"The Social Security Act was signed into law by President Roosevelt on August 14, 1935. In addition to several provisions for general welfare, the new Act created a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement"

Good Resource, if not a bit glorified

Somehow Insurance Companies are able to cover people, and still turn a profit. So we have two options.

1) Make sure it makes money

- But that would mean operating like an insurance company and be overly stingy.

or

2) Let the professionals do what they do best.

I'm not asking the government to look after my real estate investments for me. Otherwise I'd be screwed.

I'm not interested in having the government look out for my children's education either. I've been through some of the best public schooling in this country, and let me tell you, they stink.

The neccessity for College Algebra as a college course should speak for itself.

I'm sorry, but Algebra is an 8th Grade class. You should know it by college.



posted on Nov, 5 2004 @ 09:37 PM
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The government will screw you on the interest anyway, Amuk. The IRS keeps some of your money an entire year and doesn't give you any interest (although they have no problem changing you interest if you owe them and are late paying). Those that are close to retirement should have a choice to stay with the plan they have almost completed, or go with the new investment choices, but probably not both.

The hardest hit will be the people my age who have been paying into it for 20 years, but not 40. Staying with the plan will not be a profitable option with us and starting to invest a small part of it with just 20 years or so to go will bring a much smaller yield compared to what will be realized by those who get to start this in their 20s or earlier.

We should be raising the next generations of Americans to be less dependant on the govenment. That should tie in well with your Libertarian platform, right? Something obviously has to be done about SS. A very gradual implimentaion of this type of plan might do it. Any time money can be used for the creation of more wealth, rather than just sitting there in the "lockbox" (a box that obviously has too many keys in the hands of Congress :lol
, I think it's a good thing.



posted on Nov, 5 2004 @ 09:50 PM
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Originally posted by Amuk
I like the Idea but those of use that are close to retirement should get our money plus interest to invest. I just dont want to lose everything I have invested so far, and dont want to get screwed out of the intrest the Government has made off MY money


For those who have paid in for years and years, I agree completely Amuk.

Myself, I have some thirty years to retirement and have paid in plenty, but at this point I would rather say keep it it's a gift let me out of SS and let me invest my money how I see fit. I doubt there will be SS by the time I retire better to cut my losses now.


B.



posted on Nov, 5 2004 @ 09:56 PM
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Well thanks to everyone who gave their info and opinions. This is something to research further and comtemplate.

I am a stay at home wife (no kids yet) and I own a small home business I started back in 2001. It doesn't make enough yet to put into any SS for me, it just pays the advertising bills right now. In 5 years it will be yielding a profit I would hope.

My husband is a UPS man and they have pensions and 401K. Supposedly good ones too. So we won't be totally screwed and be left with only SS as our only retirement income. He's already got 15 years in and can retire when he has put in 25-30 years depending on a point system. We're not really counting on SS to be there when he turns 65 but by then the retirement age will probably be 75!

Off to research

I'm going to research more options in the meantime.



posted on Nov, 5 2004 @ 10:09 PM
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Originally posted by Ambient Sound
. That should tie in well with your Libertarian platform, right?


One of the LPs plans on SS involves giving us the money invested PLUS interest so yeah I will go a long with that plan What I will not go along with is getting screwed out of what I have invested.

Privite investment is the way to go the ONLY reason the feds dont like it is they will have to explain where all that money is and what they have been doing with OUR money



posted on Nov, 5 2004 @ 10:30 PM
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Originally posted by favouriteslave
...by then the retirement age will probably be 75!


Yes, it will have to be. People live useful lives far past 65 nowdays. It's kind of illogical not to expect those who can to continue to contribute to society. I find the wisdom of those with advanced years is welcome and can be utilized in many productive enviorments. At least I think so, and if I survive my wicked ways to live that long, I'd like to think I'd continue to be productive in some way that would benefit society or at least continue to pay my way in it.



posted on Nov, 5 2004 @ 10:34 PM
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Originally posted by Ambient Sound
the wisdom of those with advanced years


And dont you ever forget it


I plan on working at least part time for the rest of my life, you stop moving and you die




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