Okay, here's the deal with the proposal.
1. It adds no money to Social Security to cover the costs of the boomers.
2. It takes money OUT of Social Security to create private accounts.
3. It costs $2 Trillion for the transition.
4. The so-called 'fix' is to change the way COLAs are calculated to reduce the payout in benefits. However, most lawmakers say this will not pass in Congress.
5. No one has said how the plan can be paid for, which raises the spector that it will be slapped on the federal deficit and clock up interest like the rest of it.
There are multiple ways that less-than-honest people can take your money in the proposed program:
1. Mismanagement costs (you screw up your investments and you lose)
2. Management costs (overhead for professionals to screw up your investments)
3. Congress picking over the plan and stuffing it with pork (probably the most costly)
4. We end up with the same problem we started with - we can't pay for the boomers - and the crisis rolls around again 5 years down the road (likely)
Yes, I agree that some THINKING is required.
"2. It takes money OUT of Social Security to create private accounts."
This statement answers one of my questions. You verify that you do believe the money stolen from me every pay period rightfully belongs to the government and I should be thankful for what they let me keep. Why did you register for FR memebership?