Those are some valid points, but I want you to think about it.
Massive funds exist in TSAs, IRAs and other retirement funds. There’s a ton of private investment out there.
I honestly don’t know what the comparative totals are, these private funds compared to the federal SS funds.
It is not my intention to create a massive fund that the government would place all with one broker and gorge the market thereby setting up potential destruction.
The government funds could be broken up into large funds handled by a broad spectrum of brokers, much the same as current personal retirement accounts are set up.
As for taking these funds out of the general fund, what would the overall upshot be?
I believe you stated it would be $1.1 trillion a year.
That’s a large bundle of funds, however the U.S. Government now pays out more than a trillion per year for S.S., according to a Walter Williams article posted on the forum today.
Fund would necessarily flow in and out of the government portfolios. Some would probably be held in reserve.
Still, it would be best if our funds did achieve optimal growth, so that people in their 30s today, have to pay in so retired folks can be paid right now.
I still maintain these funds have been mismanaged big-time.
I am aware of how much money I paid in over time. That money should have doubled or tripled over time. It didn’t grow at all.
I will wind up getting back more than I put in, but that is not my fault. It is the fault of Congressional mismanagement.
One idea might be to simply buy T-bills with them. At least T-bills have a rate of return.
I think if you coupled this with privatization it would be hard for the Donkeys to argue that there was some larger risk to Social Security. Only if you think FedGov will default on bonds.
Then, at age 65 - you could convert it to an annuity (again, one option would be government run), or move it to private funds, or spend the principle. (Possibly with some maximum per year.)
This eliminate all the people gaming the system who work just enough years to get the minimum at the end of their productive years and get a much higher rate of return than the diligent 50 year contributors (which I will be when I retire)
Right now it is 1/2 a retirement system and 1/2 Yet Another Wealth Transfer System.