December 12, 2006
Change In Politics#2
Previous edition: Change In Politics#1
With the new Congress coming into power shortly, what types of new legislation would you like to see happen? I know you can think of a ton of things you would personally like to see, but what are your main ones that would benefit a lot of people?
Here’s my second proposed change that I would like to see happen with the new government in power.
I know a lot of the things I would like to get accomplished through the new Congress will not happen because it will be a divided government, but I digress. I would love to see the revamp of Bush’s Social Security reform come back into the limelight. I am a huge believer that it should be up to the individual to save for their retirement and not up to the federal government. Why would someone want to trust the federal government to save for THEIR retirement when they can’t balance a yearly budget?
Going to a privatized system will enable the individual investor to capitalize on their wealth through their own risk tolerance. I know many people will argue that most individuals do not have the financial education to make a proper investment decisions, but I think that when everyone will have more money, fees at wealth management firms will decrease by a large amount and they will reduce their inception standards on individuals. It would also put a lot more pressure on businesses, small and large, to have a company 401(k) either through their own company or 3rd party investment firms.
What do you think??
I agree completely. Every time I look at my pay check and see all the money that Social Security takes from me I think that I will never see than money in it’s entirety again. I would much rather it all go into my own, individual retirement fund.
I’m on the fence here… I agree that I personally would like to manage my SS fund but I’m not sure I trust the rest of America to do so. What we risk here is pretty significant. If people cannot/do not properly manage their SS fund, they’ll be broke and poor in old age. This is a problem for several reasons, most notably IMO; older people vote more than other age groups and therefore we risk them voting people into office who will raise taxes to fund programs to provide for them in old age. So, we could very easily end up in a situation where the old vote back SS and then we’re really in trouble because we’re essentially starting from scratch again with the SS system. I also think it’s folly to think that fees and the such will go down. There is no reason to reduce fees unless the customer demands it and I don’t think the average American knows/cares all that much about fees.
I think fees would go down with the increased demand for wealth management, but that’s me. Business would be in charge in setting up a retirement account for the employees so the financially uneducated person wouldnt have to do anything.
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