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people who contribute to social security should have the right to choose how their money is invested. - Essay Example
Author : wyost
Pages 6 (1506 words)
People Who Contribute to Social Security Should Have the Right to Choose How Their Money is Invested Living in these uncertain times, when money is tight and penny pinching is the order of the day, when the country faces a fiscal cliff, and our savings accounts and other investments are basically equivalent to worthless stock, it is important for people to take a step back and study their various remaining options when it comes to their retirements benefits…
Neither is social security a financially secure program as the office itself has a problem collating funds in order to fund itself. The program is basically bankrupt. Knowing that social security is in dire straights due to the U.S. economy, one cannot help but wonder, maybe the system will be better off if it is privatized and the members are given the opportunity to invest the money they contribute to the system themselves? With the annual return of social security contributions pegged at about 1.2. % this means that is has the lowest ROI prediction of all the retirement investments of an individual. The expected ROI from the stock market averages 6.34 %. As such, if a social security account is converted into a private account, the FICA taxes could give a maximum return on the investment upon the retirement of the member. The social security system would then actually be in a position to help supplement the retirees income in a significant manner. (“Should Social Security be Privatized?”). ...