Comments on: Flying Without a Net http://www.lorenwebster.net/In_a_Dark_Time/2004/10/19/flying-without-a-net/ Thu, 11 Mar 2010 23:59:13 -0500 http://wordpress.org/?v=2.9.1 hourly 1 By: Shelley http://www.lorenwebster.net/In_a_Dark_Time/2004/10/19/flying-without-a-net/comment-page-1/#comment-3363 Shelley Tue, 30 Nov 1999 00:00:00 +0000 http://www.lorenwebster.net/In_a_Dark_Time/?p=699#comment-3363 Unless I marry rich, or my writing or photography is 'discovered' and I become an overnight sensation, I will be depending on social security. My mother is now, except that, luckily, she does have a good savings account from the sale of her house in Seattle. The private investment of part of the SS funds is the worst idea I've heard. It favors the rich, and will lead the poor into making foolish choices that could harm them when they're older. Unless I marry rich, or my writing or photography is ‘discovered’ and I become an overnight sensation, I will be depending on social security. My mother is now, except that, luckily, she does have a good savings account from the sale of her house in Seattle.

The private investment of part of the SS funds is the worst idea I’ve heard. It favors the rich, and will lead the poor into making foolish choices that could harm them when they’re older.

]]> By: S Friedman http://www.lorenwebster.net/In_a_Dark_Time/2004/10/19/flying-without-a-net/comment-page-1/#comment-3364 S Friedman Tue, 30 Nov 1999 00:00:00 +0000 http://www.lorenwebster.net/In_a_Dark_Time/?p=699#comment-3364 I have an idea about how privatization of Social Security might work: A worker could have an account ("ISSA") like an IRA-- choose his own brokerage (or other financial institution(s)) at which to hold it, choose whichever investment vehicle(s) (except certain high-risk ones) he wanted, and pay the brokerage fees for making the investment transactions in the account. However, the brokerage would merely be holding the funds for the Social Security Administration of the government. The worker would retire and start collecting Social Security, and take distributions, just like from his IRA. The government would still continue to calculate the amount to which the worker would be entitled every month, and the SSA (through the brokerage) would pay it out. There could be special rules for a worker who bankrupted his ISSA, like by buying all stocks that went bankrupt-- there would be some formula whereby his Social Security check would be reduced proportional to his losses. I have an idea about how privatization of Social Security might work:

A worker could have an account (“ISSA”) like an IRA– choose his own brokerage (or other financial institution(s)) at which to hold it, choose whichever investment vehicle(s) (except certain high-risk ones) he wanted, and pay the brokerage fees for making the investment transactions in the account. However, the brokerage would merely be holding the funds for the Social Security Administration of the government. The worker would retire and start collecting Social Security, and take distributions, just like from his IRA. The government would still continue to calculate the amount to which the worker would be entitled every month, and the SSA (through the brokerage) would pay it out. There could be special rules for a worker who bankrupted his ISSA, like by buying all stocks that went bankrupt– there would be some formula whereby his Social Security check would be reduced proportional to his losses.

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