RE: conflict of interest

[Stephen Wyman <swyman@altavista.net>]

Privatization can be simple.  

How?  

I'm glad you asked. 

The money that is collected, but not spent on SS would NOT be
directed to the Government's general fund, nor to private fund
managers.

Where would it go?

To a small office, that employs fewer than two dozen people, where
the money is invested in a variety of Index Funds.  Index Funds
have minimal need for management, therefore have the smallest
management costs of any form of managed fund.  Index Funds also
invest in a wide array of industries so that there is minimal risk
while delivering consistent, moderate returns.  As any of the
individual funds raise their management costs, or generate consistently
less than average returns our SS funds would be withdrawn and moved
to other funds.

This approach requires minimal administration, as compared to many
other forms of investing.  This approach also  keeps the money away
from private investment management companies that could be tempted
to over-manage (a.k.a. over-charge) for their services.

The risks are smaller than average, so the ability to make huge
returns are similarly limited.  However, at least 10% in annual
returns are within reasonable expectations.  A fund that consistently
earns an average of 10% in annual returns will double every seven
years.

Something to think about...