Monday, February 21, 2005

New ideas for providing social security

Title: A New Idea for Social Security
Source: LA Times
Date: February 15, 2005

From the article:
    If we decided as a society that we were going to put $2,000 a year into a savings account from the day each child was born until he or she reaches age 18 — and if we assume a 6% annual interest rate — each child would have $65,520 at age 18. (The worst return for a 25-year investor in the stock market from 1929 before the crash to 2004 was an average of 6% a year.) With no further contributions, again with a 6% interest rate, those savings would grow to $1,013,326 at age 65.
It is an interesting idea that goes a long way toward providing a form of financial freedom.

See also -

Title: Who Wants to Be a Millionaire?
Source: NY Times
Date: January 16, 2005

From the article:
    As I write this I can imagine the chorus of pundits saying, "This isn't politically possible." Why not? Because it is too complicated for people to understand? Or because the only way to approach change in our society is through small incremental steps, like the president's tepid notion of a limited, voluntary diversion of Social Security taxes into small private accounts?

    Baloney, I say. What stands between a truly worthy aspiration for our society and its realization is political leadership with the courage to dream big.


At 12:26 PM, Blogger SurfThug said...

"A Progressive Framework for Social Security Reform", by former National Economic Council Advisor and senior fellow at American Progress, Gene Sperling posits some alternatives to what's currently on the table including the idea of a portable "universal 401-k" on top of social security and using the estate tax (with a raised floor) as a 5000-to-1 tax cut for keeping social security solvent.


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