>>>>Not predicting either, but who knows what the future holds.
>From Michael:
>>>>Doomsday scenarios are not a good reason to eliminate the use the private markets for retirement security.
And indeed I do not advocate such. But doomsday scenarios are also not a good reason to stampede everybody out of the current system without recognizing the potential pitfalls of a privatization solution.
>>>>Under nearly all reform proposals the government would still be bearing all of the risk to provide a "minimal benefit".....Most of us on the side of reform do not want to see the guarantee eliminated from the program. In this sense, the government will be assuming the "risk" for people that somehow are dealt a bad hand in life....There should be a guaranteed benefit which would be provided from either the "safety net" or individual retirement account. Any shortfall in ones individual retirement account would be covered by the "safety net".
But of course, the gov't doesn't really bear the risk. The taxpayers do. And the cost of that is currently buried within the SS structure. And what percent of your payroll is your share of that risk? Remember, you have to eliminate that percent when you are evaluating a 'return' on your investment. Because, you will net no return on that percent, since you expect to be successful in investing in your own retirement.
>>>>>The insurance aspects can easily be added using the private markets at a relative low cost.
But at a cost, nevertheless. Which again you must deduct BEFORE calculating your investment return for retirement. And the gov't will again (read 'gov't' as you the taxpayer) need to assume the risk for those who are uninsurable for health reasons (or too poor to afford the premiums).
>>>>Spouses could inherit the individual account plus whatever factor (if any) required to bring the benefit up to the minimum.
When I referred to Spousal benefits, I was not talking about survivors benefits, but spouses who can get retirement benefits based on their living spouses 'record' (i.e. benefits they have not earned).
