Re: Questions???

["Al Abbott" <al_abbott@csi.com>]

Comments about the points listed:

1) When evaluating privatization proposals, you should consider whether
they provide a benefit should a breadwinner become incapacitated or die.
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Private accounts would be fully owned by individuals. They would pass on
to heirs. Additional private disability insurance can be purchased.

2) Administrative costs for individual accounts are high because the
account sizes are so small relative to the costs to manage them.
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These costs are quite reasonable for the direct ownership of the funds.
Considering the actual wealth accumulated (as opposed to a tax burden
created for our heirs), the minimal cost is worth it. This is not a problem
for current IRA and 401(k) plans.

3) If the young dropped out, it would be the old who would suffer.
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No one is so callous as to yank the retirement rug out from under today's
seniors. By converting to private retirement accounts, the current unfunded
liability can even be reduced a few billion. Since it is taxes in and
payments out, we can continue the benefits for those now receiving or about
to receive them.


Al Abbott