Social Security reform: A guide
money.cnn.com
The number of workers to retirees – as high as 16-to-1 in 1950 – will shrink to 2-to-1 within 40 years.
Under this proposal, you could open a personal retirement account into which you may redirect 4 percent of your taxable wages (that is, about a third of your 12.4 percent payroll tax obligation) up to $1,000 a year. That cap would be indexed to wage growth.
[ Why is it capped at $1,000 savings per year? The # should be $3,600 allowable savings, not just $1,000.
Because 4% * 90k Fica cap = $3,600. There's something wrong with their $1k savings cap - they are artificially reducing your privatized savings by $2,600. Where did the $2.6k go? To the govt? If so, that's not a 4% savings rate of your payroll tax obligation. It's only 1k/90 = 1% which is absolutely miniscule. I don't like the plan, unless you can save up to $3,600 per year, which is 4% of $90,000 (Fica limit). ]
"You could invest the money in a small number of diversified portfolios, but not in individual securities. "
[ YUCK - You cannot invest in individual securities !? What? ]
==> They need to give people the freedom to invest in individual securities. Good grief.
Regards,
Amy J |
