RE: Gen-X Viewpoint

[Michael <powderfinger99@yahoo.com>]

James>>>

<<<
Risk free to whom? Certainly not the taxpayers. Ever hear of the
S&L Crisis?
>>>

This is an important distinction, which deserves elaboration. 
In the case of the S&L (if that is where the money was deposited),
I own the account, and the government backs it up on default. 
In the case of Social Security, the government owns the money, 
and it can chose to changemy benefit at any time. 

I'll take the government backed S&L account any day.

<<<
But of course, the Earnings statement always uses 'current' dollars.
Your bank example uses 'future' dollars.  Not the same thing. Hence,
your 'negative' return statement is inaccurate.
>>>

I should have given the numbers up front. My assumption was an
inflation rate of 2% and a bank rate of about 4%. So the return
given for the bank account is over and above the inflation rate.

The fact is the Social Security return is negative, taking into
account adjustments to inflation. This is the real risk in Social
Security:  losing out to inflation.

Michael