How to Fix Social Security | 5 Minute Videos | PragerU
Will there be $1,000,000 waiting for you when you retire? Not if you’re relying on Social Security, which is barely on life support. Can we mend this broken government program, or do we need an entirely new approach, call it a retirement revolution? Economist Stephen Moore has some ideas.
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I'm a conservative, and I still think this is propaganda. The risk tradeoff isn't discussed.
Better idea, but I want the government out of my savings/investing entirely. I strongly believe I could make much more on that money than I will ever see back from them. Just don't make us pay into SS and we can invest as we see fit. I realize the problem is many people won't do that, but it seems more of the government thinking that we are too stupid to handle our own lives. I am so tired of tremendous weight of paying these taxes.
This is more about making hedge fund managers richer.
The problem with this idea is that MOST OF AMERICA'S HEAVY ENGINEERING HIGH-TECHNOLOGY MANUFACTURING INDUSTRIES ARE NOT IN DIRECT CONTROL OF THE AMERICAN ECONOMY. It is in LOCAL AND INSOURCED FULL SET ECONOMIC BASED manufacturing, not in services and not in outsourced manufacturing in foreign lands that you should avoid investing YOUR PENSION-INVESTMENTS.
YOU PAY-INVEST INTO THE PENSION INVESTMENT GOVERNMENT SYSTEM SO THAT THEY CAN MAKE IT WORK TO MULTIPLY IT TO INCREASE YOUR PENSION INVESTMENTS. AND THEN THE ADMINISTERING-MANAGING GOVERNMENT IS STEALING YOUR PENSION-INVESTMENT MONEY FOR USELESS PROJECTS, IF GOVERNMENTS CAN DO THAT CRIME THEN WHAT IS TO STOP PRIVATE PENSION SYSTEM TO DO THE SAME CRIME IN THE FIRST PLACE?!
SS will have to totally collapse before anything changes. If we switch to the new system, who will pay for the pyramid scheme we currently have going until young people today are old and start drawing on there own private "SS" account? Everyone would have to double pay until the current and soon to be SS users have died.
Would it be mandatory and would the percentage of the deduction be what it is now. You can never take it out until your retirement age.
there is no war in ba sing sei
2:30 One problem with the old Compound Interest Argument: Nothing is guaranteed
Show me an Index Fund that pays a 6% rate of return, guaranteed in writing for forty straight years
The plan is flawed even now. Because inflation is raising so much your living cost can't keep up so you would need to use that currency now. Also the stock market crash of 1929 had everyone in the stock market and they lost everything. It's not 100% safe. Also that index fund would only be the corporation and American real economy is main street where most people work.
And when it all crashes ?
Buy gold and silver
"it doesn't exist"? Yes, it does, it's called a Roth IRA. Anyone can start one and start contributing and the money grows tax free until retirement. If you want your money sooner, just start a normal brokerage account and buy tax free municipal bonds, or if you are ok being taxed then just buy index funds or whatever else. Social security is illegal theft. The government has robbed us and we demand our money back with interest now. Then end that socialist program.
The greatest force in the universe is the strong nuclear force.
Sure they'd love to get you to put money into the stock market but if you are paid wages once you signed up to a plan like this your wages would still be subjected to inflation and than when another recession comes it would be stolen by Wall Street crooks just like pension plans durring the crisis of 2008. Social Security is really a pay as you go social wage insurance program for disabled and elderly workers.
Stop stealing from it to support Ukrainians.
Keep Social Security as it is. Then, when a worker reaches a certain age, let's say 45, they have the option of keeping in SS until retirement or they can roll the proceeds over into an IRA with no option to withdraw until 62. This gives them more freedom to choose, and for those that fear the stock market they can keep it with employers paying into the system as well (traditional Social Security as it now exists).
Truth is, government is so called third party actor
Which means it cares neither about making something cheaper nor about making something of better quality
And that's is why governments are generally bad and providing any services
you get rid of it, that's how.. it a terrible program that's mismanaged and corrupt and not even enough to live on.
Easy to fix. Get Rid of it. Teach people how to save for themselves.
Moore conveniently leaves out how we would pay the current obligations.
I like it but the Social Security Administration is already investing in two Trust Funds. The money is there but it’s not being giving to retirees. They’re keeping the profits and still paying out nothing.
The idea of social security is to help you if your private investments fail. I don't like investing in stocks because what if the company's are evil? Could you know if you invest in a index fund?. Save social security and then do investing if you want to.
First of all, thank you boomers for ruining our finances. Then, what about people who can´t invest? 5000 dollars is a lot of money. Wikipedia says this guy is a writer, not an economist. Even hardcore conservatives think he is incompetent. Suspicious. And he starts his financial advice with a climate change strawman lol
This plan fails to address the welfare part of social security as well fails to explain how it would continue to pay current recipients while the funds are being put into private accounts. The people are not ready for extreme austerity
Long term investments in the stock market have paid handsomely. The sliding 40-year returns of the S&P500 starting in 1960 until today had a minimum annual return of 11.3% and a maximum of 13.7%. Anyone investing over any of these intervals would have done very well in retirement. These returns assume reinvestment of dividends.
Shut it down give every citizen that paid in their money back. Problem solved
I remember when SS cards said "account number" on them. But LBJ and congress in the 60s could not resist that big pot of money and spent the "Trust Funds" on their great society programs, which ended up doing more harm than good. Now Dems want to tax unrealized gains and have their beedy eyes on our 401ks. How about returning the money I paid into SS and let ME manage it? I can do a lot better than an index fund!
25% of Americans make less than $18,000 per year. Try to live on $18,000 a year let alone allocate $5,000 per year to invest. Social security is about providing for those who make too little to provide for their own future. Note that we benefit from these individuals throughout our life as their low salaries keep the cost of everything low for us through our lifetime. It is a shell game. No matter what we do, there is a minimum amount of money that must be spent to sustain low wage people and their families through their life.
This sounds like a good idea, an individual can replicate it with a simple move. Every paycheck shows the deductions, Take an amount equal to 1/2 or all of the SS tax, put it in an interest bearing savings account. When you are younger, and you reach a volume of money, you can move that into a fund with risk you are comfortable with, as you get older, you put more of your investment into lower risk funds, including US Savings bonds. If you never cash out the bond, it keeps accruing value ( the potential payout). By the time you are ready and willing to retire, you should have all or most of your money in "safe" investments. Buy a life insurance policy for a high dollar amount at 20 to 25, when you can pass a physical and your rates will be the lowest. a nice amount, say a million dollars, that matures when you reach 55 to 60. That is a nice beginning for a retirement fund that is not controlled by the government. You will still have SS money coming in, but, your private savings my dwarf that. It takes discipline and forward thought to do that. On a social note, be careful who you marry. Divorce can be deadly to finances, and prenups will not protect you from child support. The rate you would pay for a million dollar policy at under 30 will get me, at 74, laughter, or take all my monthly income
The problem is that SS was originally setup as a transfer payment and not an investment. My SS taxes paid today transfer to my parents' benefits today. If I invest my SS dollars instead, where's my parents benefit going to come from?
"Make All Retirement Contributions Tax Deductible and Withdrawals Tax-Free!!"
There is a better way to fix Social Security. In the 1970’s they used to use the same formula for COLAs to index your wages to inflation to figure up your benefits. Then they changed it and started using the average wage index to adjust your wages and figure up your benefit. If they went back to the old way, benefits would start out a little lower and then increase by the COLAs each year. And it would completely fix the shortage and make Social Security solvent at least until the year 2100.
So what you're suggesting is… what, exactly? Have the Social Security payments invested in privatized index funds instead of the existing trust? Would it be government-managed or would each poor sucker be responsible for knowing about it?
See, this already exists: opt out of social security (there are a few mechanisms, notably for ministers) and invest that amount in a Roth IRA 401k based on index funds. Increase your contribution to also cover what you're not paying in Social Security taxes. Boom. You could even sell a multi-part course in how to do this, and more importantly how to skirt regulations and register a for-profit business as a religious institution for tax purposes (half-kidding satire here…)
The REAL solution is to fix the issues with Social Security itself, notably by replenishing the dual trust funds and perhaps diversifying it. Not replacing it with 401k.
Dems will claim it as capitol gains and tax the hell out of it!
Trusting the gov to keep its sticky regulatory hands off of a program like this is the biggest pipe dream. We already have seen what N Pelosi has done with the stock market and that's without this program. Fear the Military Industrial Complex would be the warm up for Fear the Stock Market Gov Team Up. Great idea that will be butchered on birth.
$5000 a year is $208 per check if you’re paid twice monthly. While that doesn’t sound like much, there are so many living so close to the edge that they would have a difficult time making such a monthly deposit. Additionally, what happens in this plan if someone is between jobs? Does unemployment insurance deduct it from your monthly allotment? Are you penalized for not paying into it when times are tough? Too many undefined points here to make it something to fully entertain. Stimulate the economy, get people working again, and Social Security can work, especially once the boomers, like me, have passed on.
So you're saying just end it and let people invest in 401(k)s or other retirement accounts.
The government should not be involved in retirement savings at all!
All the good things said here. Were all the things we were told to us about the 401K at the factory I worked in. And my friends that fell for it, lost almost everything.
I would love this plan I advocate for it I don’t think it will happen.
Sounds great for the stock market.
I have another idea a fund banks and companies can borrow from but ownership would be workers. A flat 6% adding the beauty of compound interest.
No stock investments needed, no brokerage or loads.
Brilliant idea, but it requires the government and politicians to voluntarily give up control of our money. I don't see that happening unless we can force them to.