There are more than a few Republicans in safe districts which still believe in privatizing Social Security. I would vote for almost any politician who supports it.

It's got my vote.

Mark

Jensen

The topic is off limit during this election.

The topic is indeed off limits on the presidential level (except for Bob Barr who'll get exactly 1.34% of the vote). Why? Bush tried for two years to reform Social Security and where did it get him? Two years of being hounded by the Dems and 30% popularity, thank you very much.

Yes. I do!

I'd be happy if they rolled my social security into my IRA,  I could pick conservative bonds and still get more than the 2-3% that social security pays.  I could take a % and put it into the market for more potential returns...  This kind of change would bolster the market.

Why it will never happen: the government will use the additional yields to fund other portions of the massive government entitlements...

Hi, jensen.

Converting to personal accounts would still have my vote as well.

Sounds like there are quite a few folks around here that would like it.

However, jensen, you are quite right to perceive this will not happen.  A longshot to begin with, it definitely will not happen now.  Not any time soon at least.

But Social Security WILL change.  The biggest change the program will undergo is that, over the next couple of decades, the benefits provided to follow-on generations will be considerably reduced (or the value of what those benefits can purchase in goods and services will be considerably reduced) compared to what retirees receive today.  That WILL happen.  It will happen, if for no other reason, because Social Security's problems are demographic in nature as much as they are financial in nature.  The system has simply made promises on which it will not be able to deliver.

The reduction in benefits will happen.  It will happen regardless of what any Republican or Democrats might choose to do to reform Social Security - including if they do nothing.

The only question is whether such reductions will be made gradually, as part of some well thought-out reform package, in order to avoid conditions that Alan Greenspan once delicately referred to as "significant economic and social disruption" - or whether change will be forced on the system suddenly - probably in conjunction with other economic turmoil.

I hope that very real, if unpleasant, reality doesn't upset you too much, jensen.  But it probably is going to except a lot of folks - particularly a many future senior citizens and many liberals.

MWL

God help me, but the Republican side of me is coming through. I also tend to support the concept of privatizing Scoial Security, even if it's just a portion.  Actually, I wouldn't mind the government even investing a portion of the current Social Security pot in equities, rather than investing it all in government-backed securities.  But I'm proud to say, nobody has ever accused me of being a smart investor.:)  Heck, I continue to DCA into equities every 2 weeks. So what if the market is tanking. If I wasn't investing in equities, I know I'd just end up blowing it all on cheap booze and fast women.:)

I agree and don't. Yes, I agree for me that it would be a good idea. I like to control my own destiny. Second, I would hope that it is structured so that government can not access of borrow our money and give us an IOU for our cash and rate of return as they do now. Third, I like that it gives us the opportunity to remove excessive obligations off of taxpayers hands at some point into the future.

I don't for these reasons:

1) valuation - assuming your investment options allow for a diversified approach that means a great deal of money being plunged into market in a short period of time, and over regular periods of time. To much money chasing to few goods. Valuations could likely go through the roof causing an asset bubble of sorts.

2) transfer of wealth - We all know that the educated investor knows how to manuever in the markets. This means that Inteligent investors (to which I will inclue anyone reading this) has an opportunity to transfer someone else's money into their account.

3) investment options - I have no doubt that at some point investment options will be geared towards washington's needs. IE.. treasury bonds forcing Americans to fund already excessive spending. Or some other gimmick spun to sound like a good idea while in practice letting congress and the white house rape the system.

BGF