The George Bush Lock Box Thread

[Happy Monkey]

Originally Posted by Beestie

But everyone who invests in the stock market earns the average return over the long run and that average return is remarkably stable.

No they do not, as you admit later on:

Prepare for even more cuts in benefits or, allow me to take more risk than you are willing to take to and earn (historically speaking) five times more than you

What risk are you speaking of, if everyone earns the average? The fact is, people can and do lose their life savings on the market. Every fund is not a winner.

and I'll help cover your deficit.

That's not how it works, unless that's a personal promise from you to me, in which case it hardly solves the greater problem.

If you do nothing, the system will not survive. What's your alternative solution?

If we do nothing, the benefits eventually fall to 80% of the current levels, (adjusted for inflation). The simplest fix is to adjust the maximum taxable earnings based on the needs of the system.

[lookout123]

The simplest fix is to adjust the maximum taxable earnings based on the needs of the system

can you expand on that HM?
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personally, i like an idea that would never get passed because it would be political suicide. but i would say that for anyone under 18 on 1 January 20xx there will be no social security check to look forward to. they have their entire lives to plan for their retirement and invest. for those 18-30, cut their benefit to 60%, for those 31-40 80%, for those 41-50 95%, for those of 51 on 1january 20xx they continue to receive their expected check until death.

in the beginning everyone would have to continue to pay SS tax, but that would be scaled down until there was no SS tax.

if you are 18 and know that there won't be any handout at age 62, you are a little more likely to put some money away for the future. and if you don't, tough s**t, i hope your family saved enough for the both of you.

how we got to a point where we expect our government to give us money for retirement is beyond me.

[Happy Monkey]

Originally Posted by lookout123

can you expand on that HM?

There is a maximum level of contribution per year. If there aren't enough funds, that level can be raised.

[lookout123]

are you saying that if there isn't enough money to pay for SS then we should increase the tax for SS?