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Original: 1/15/2005 12:16 PM
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Saturday, January 15, 2005

 

Festering funds

There's been that recent buzz over the President's social security plan. Even though it sounds like a great alternative for "younger" folks, you always need to be skeptical about Republicans and their concern for this often ignored constituency. My mother was very much opposed to the plan, because she can easily see through the self-serving interests of the big businesses to try and suck your money now and leave you penny-less in the future. Of course, I know many young people who'd like the idea of being able to keep a larger portion of their pay cheque...but you got to admit that most young poeple aren't very good about saving money either.

In any case, I am personally opposed to the plan, because it's essentially selling off your "security" with some short-term gains in the stock market. Yes, you might invest a lot and get a great return, but there's no guarantee that you can generate divendends that enable you to save up for old age. Okay..I'm not the expert on social security, but it's pretty obvious and logical that you can't expect to get anything without first contributing to it. Oh well...this new plan isn't widely supported, so I guess I shouldn't be too worried. Robert Matsui's spirit must be watching over his baby.

 Posted 1/15/2005 12:16 PM - 2 views - 2 comments

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Visit ToyPetFishes's Xanga Site!
Right on. The only people who stands to gain from this scheme are the money managers in Wall St.
Posted 1/17/2005 12:31 AM by ToyPetFishes - reply

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I disagree.  First off, people wouldn't keep more from their paycheck -- that 6.2% would instead go into your personal retirement plan.  And the government would limit choices to certain diversified funds so that it's not gambling on a particular stock.  Stocks over time gain in value wayyy more than anything else (10%+ per annum) so even if you lose 20% in one year the 40+ year horizon you save money for retirement should even out those bumps.  It's people who invest in 401(k) plans entirely in their company - a la Enron - that get screwed.  The biggest thing to watch out for in something like this is that the Wall St. companies don't charge excessive fees -- more than a few basis points -- or yes, you would be right.  I think it's a great plan although it does put into question how the government will finance short term Social Security obligations.
Posted 1/17/2005 12:53 AM by ekonopka - reply


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