No sooner did I start this blog article about proposed Social Security changes, do I turn a few more pages in my morning paper and see on Page A9, Tuesday, January 4, 2005, The Washington Post, a full page ad, with bue Social Security card background behind it, and a big headline that looks something like this:
WINNERS
& LOSERS
are stock market terms.
Do you really want them to
become retirement terms?
Let's not turn Social Security into Social Insecurity.
... Call your legislators
at .... urge them to oppose private
accounts ...
Sponsored (of course) by the AARP.
I would say their own words could be used to bite them, where they say "oppose private accounts that put Social Security at risk," as none of the proposed changes are putting Social Security at risk. They may put a small portion of an individuals retirement fund at risk, but they will also provide the potential for a much larger financial reward for those that take the initiative to invest wisely.
It may not seem fair in comparison to a system where everyone is guaranteed the same benefits, but life isn't fair. Some people make more than others, some people work harder than others, and some people make smarter decisions than others. To hold back the potential rewards for some because you fear that others may not do as well is just plain stupid.
Build in safe guards, offer only limited choices if necessary, but offer some way to invest in the market with a small portion of Social Security contributions. Allow a minimal investment into future growth that -- if invested well -- could return big benefits for everyone.
