RE: Why Reform Now: It's my money

[Javier Jimenez <jimenj@yahoo.com>]

>>>>>>>>>>>>>> Steven H. Johnson Wrote:
Richard Arnold states that the Cato plan is a workable alternative
to Social Security.

To deliver the benefits it promises, the Cato plan would require
a new system of personal retirement accounts to soak up all the
stocks on the U.S. stock market.

That doesn't strike me as being very workable.
<<<<<<<<<<<<<<

Privatized SS will not soak up all of the stock on the market, no
one worker will be forced to pick out winners and losers.  Investment
in mutual fund is something that will be available to workers, and
degrees of risk will exist for workers to pick from.  How simple
can mutual fund investing get?  You send money every month, week,
day, hour, whatever.  A professional invests the money in stocks,
bonds, CDs, whatever.  The choice is yours, whatever you feel
comfortable with, a corresponding fund will gladly accept your
money.  And then, your money componds.

The money invested in stocks follows the following complicated
logic, when the market drops, your account loses some value, when
the market goes up, your account increases in value.  Since before
the great depression for every 20 year period stocks have returned
a yield in excess of 8%.  SS well below that.  For future retirees
the expectation is well below that.  If you don't understand this
complicated formula, and cannot find it in your heart to invest in
stock then bonds, and CDs will still give you a return that will
exceed your wildest expectation from SS, capish!.

In the end, the wealth generated by your savings and investments
is yours, use what you need, leave the rest to your heirs.