A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Thursday, January 13, 2005

Social Security

Is there a more controversial topic these days?

I'm thirty-five and a capable investor. I'm not worried about not getting Social Security. In fact, I'm not planning on it. I'd prefer to do as much preparation for retirement on my own as I can and not worry about what the government is or is not going to do.

But, surely there is a way to fix this system. I have a few ideas that I'd like to share. Some are pretty obvious and others are quite drastic. Here we go:

1. Either cut future benefits or increase the qualifying age for receiving benefits.

2. Start educating people about the importance of saving for retirement. Start public service announcements discussing retirement planning. In other words, make people feel guilty if they aren't saving for retirement. Saving for retirement must be a priority for everyone.

3. Allow people to receive a tax break if they donate their Social Security payments back to the system. There are a lot of retirees who receive Social Security payments and don't really need them.

4. Turn Social Security into a sort of Medicaid program for retirees and only give benefits to those who qualify. Going this route would pave the way for a reduction in Social Security taxes. I would much rather manage my own money than have the government do it for me.

5. The most drastic of all: MAKE people save for their retirement. Deduct 10% from their earnings and make them invest it for retirement. If people are too stupid to do it for themselves, then perhaps someone must do it for them.

I would like to hear what you think. Either send me a comment or an email.

Until next time...