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Old Jun 2, 2007, 04:11 am   #14 (permalink) (top)
chaplainson
Molten Ash
 
Posts: 38
I agree with Soylent that not all people can save for their future, however all people are required to pay into SS. i think the number is 7%. SS WAS a good program, but now it's just falling apart as benefits are rising quickly.

Quote:
All working people contribute to SS, it doesn't come from the government
Misunderstanding, I know that SS is all the workers money paying the retired now, but the extra "goes into a trust fund" that the government controls, so at that point it's "their money," in other words they're handling it, and then borrowing from themelves, and then they'll pay back themselves, and the debt will rise, just not from SS but from paying back SS, which means that it will be SS problem.

Quote:
There are advantages as well with a Roth IRA to help these lower income people get on their feet, such as interest free home loans, borrowing against your initial contributions without penalty
It's for this reason that I think a new system should be put into effect, where instead of the workers now are paying for the retired now, you force the workers to put a certain percentage of their paycheck (We put 7% into SS, so if we made it equal, they would have the same money now as before) into a Roth IRA type account, which they would not be allowed to touch until they retire. At that time, the government, who hasn't touched the account, because it's not theirs, would turn over the keys to the worker, who can see exactly how much money he/she has, and there you go, the government has no liability.

I have a slightly more in depth system in mind, if anyone wants me to take the time to write it out I will.
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