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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (212818)	12/7/2004 5:43:07 AM
From: Amy J	Read Replies (2) \| Respond to of 1585744

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

To: TimF who wrote (212818)	12/7/2004 10:07:10 AM
From: RetiredNow	Respond to of 1585744

Excellent article, twfowler. His analogy of the dilapited roof hits the mark right on. SS has an off-balance sheet unfunded liability. All Bush's plan does is recognizes and declares a portion of this unfunded liability, so that we can deal with it. Not dealing with it will result in the SS fund getting depleted leaving millions of this generation who paid into the system, with no social security retirement to show for it. This is the problem with a system that DOES NOT tag your contributions to your SS # and thus to your payouts.