Be more responsible with Social Security
Published: Wednesday, January 12, 2005 at 6:01 a.m.
Last Modified: Tuesday, January 11, 2005 at 10:30 p.m.
Is Social Security in trouble? Only if the Social Security administration is encouraged to have it that way.
If you hired a financial adviser to be responsible for your retirement funds and, with frightening consistency, he or she annually returned slightly more to your account than the current rate of inflation - what would you do as you watched the buying power of your hard-earned money, on which you have paid taxes, increase at a little over 1 percent per year? You would fire him or her.
The Social Security administration is funding the federal deficit with your money and at such a paltry return that it (you) may run out of money. That is the problem with Social Security.
This is not an appeal for the privatization of some small part of Social Security, but an appeal to the federal government to be more responsible investing our money to provide for the financial future of us, our kids, and future generations, rather than funding, each and every year, the federal deficit at ludicrously low returns.
It makes the politicians look good. Hey, lower interest payments lower the deficit for the year and a great political football is good fodder to blame the other guy. But this threatens the system.
It would seem that a responsive, forward-thinking government could conceive and implement a reasonable and safe return on investment of your money that significantly exceeds the rate of inflation.
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