Social Security

Soc Security is insurance not to be gambled with

With all the recent hoopla over reform, Mr. Logue, a Massachusetts Institute of Technology graduate, decided to go back and check his own records. Would he have done better investing his money than the bureaucrats at the Social Security Administration? He recorded all the payroll taxes he paid into the system (including the matching amount from his employer), tracked down the return the Social Security Trust Fund earned for each of the 45 years, and then compared the result with what he would have gotten had he been able to invest the same amount of payroll tax money over the same period in the Dow Jones Industrial Average (including dividends).

To his surprise, the Social Security investment won out: $261,372 versus $255,499, a difference of $5,873! ...

Under Britain's privatized pension system, so many retirees are doing so poorly at this moment that a commission warned this fall that widespread poverty among the elderly may be returning, which could require massive new government spending.

*Social Security is insurance that protects our citizens. It's not capital that grows by exposing it to market risk*

The Christian Science Monitor printed an article, “One man's retirement math: Social Security wins,” ion December 27, 2004 that tells the complete story of the above post. You can access it at the following link:
http://www.csmonitor.com/2004/1227/p01s03-cogn.html

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Yep but it's still a ponzi scheme that is depended on those paying in. When those paying in decline in numbers its gonna hit the fan. Something has to be done but our gutless wonders in Washington will keep putting it off. Having your own investment strategy may not be the whole answer but the very fact that it is being looked at as an alternative is progress, not a solution but progress. Lets not forget that figures do not lie but liars can figure.

Bill Chalet

(Editor’s Note: Too bad that Government Officials couldn’t keep their hands out of the pot that was holding the Social Security monies that were supposed to be paid out to those that paid into it.)

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Carol

"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little."
Franklin Roosevelt, in his second Inaugural Address

U S Legacies Magazine January 2003