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You know what troubles me with this plan is that you'll only
be able to invest into a set group and I haven't heard
who these companies or investment companies are but you can bet
some already rich people are going to get even more rich and the way
things are going I bet they'll have friends in high places.
Does anyone know where we will be allowed to invest this
money.
Mark
-------Original
Message-------
Date: 03/20/05
08:15:15
Subject: [QUAD-L] Do
your own math on SS plan
Do your own math on SS plan
March 20, 2005
By Tim Zorn / Post-Tribune staff writer
The numbers and theories flying around about Social Security�s
future could
make anyone dizzy.
Is Social Security about to go broke? Or does it just need a
little
tweaking? Do you trust the government with your retirement money?
Or do you
prefer to risk it in the stock market?
And would President Bush�s proposal, to let workers set up
investment
accounts with some of their Social Security taxes, make everything
better?
Some groups have come up with handy �calculators� to show people
how much
they could expect to make in different Social Security
scenarios.
But the numbers vary widely � not surprisingly, because
different
assumptions underlie the calculations.
For example, U.S. Rep. Peter Visclosky, D-Merrillville, put on his
office�s
Web site last week a �calculator� that shows how much you�re likely
to lose,
not gain, under President Bush�s plan.
The calculator was put together by the House Democratic leadership,
which
has been critical of Bush�s plan.
Supporters of Bush�s plan say private investment builds up a bigger
nest
egg, over time, than Social Security does.
�You�re going to see greater returns (with Bush�s plan) than
you�re
receiving today,� Indiana State Treasurer Tim Berry said. �I�m
convinced
you�ll be better off than you will be with just Social
Security.�
But according to the Democrats� �calculator,� people born after
1950 � the
age range affected by Bush�s plan � would inevitably have smaller
Social
Security benefits if Bush�s plan became law.
That�s because of a little-noticed aspect of a reform plan proposed
by
Bush�s Social Security Commission in 2001; Bush has said that plan
was the
basis for his proposal.
Critics, such as the Center for Economic and Policy Research, say
the 2001
plan includes a change in the method of calculating a person�s
initial
benefits � and thus reducing benefit increases.
Even with private accounts, Social Security would produce less
income if the
change in calculating benefits became law, according to the
Democrats.
Berry wasn�t impressed with the Democrats� �calculator.�
�You can make numbers do anything you want,� he said.
No legislation embodying Bush�s plan has been introduced, so it�s
too early
to say if it would include a benefits-calculation change.
Visclosky believes the government should �strengthen� Social
Security, his
spokesman said, without cutting benefits, raising taxes or
borrowing more
money.
At the other end of the spectrum, the conservative Heritage
Foundation has a
�calculator� that shows how much individuals would make if allowed
to invest
all their Social Security taxes in personal retirement
accounts.
But the foundation says that doesn�t reflect Bush�s plan, which
proposes
diverting only a fraction of Social Security taxes to investment
accounts.
Go figure
Some �calculators� are available at the following Web sites:
planners/calculators.htm
features/socialsecurity
sscalculator.htm
reformandyou/sscalc/sscalc.php
calculator.html
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