Thursday, January 3, 2008

I'd Love it if this happened.... Social Security

You know what one proposal I'd LOVE to see? I'd like to see the Federal government abolish Social Security. Allow me to keep the ~12% of my income they steal from me annually. If I took that money and invested it, putting some in savings, some in mutual funds, some in the stock market, and maybe what's left in bonds I'd have a good deal of diversification. I could also put some in an HSA for future health care expenditures if I so desired.

As it stands now I'll be lucky to get back even a portion of what I'm paying in, if I get anything at all. That's assuming I live long enough to collect. What the current system does is essentially the government takes my income, gives me an IOU and says "you can come and collect in 50 years." Even the most conservative investment portfolio couldn't possibly end up worse off than giving my money to the Federal Government.

How many young people paying into Social Security right now actually expect it to pay out for them when they hit old age? If it pays anything it sure as hell won't be equal to the sum you've paid in, adjusted for inflation. Why have someone hold money for you knowing it won't yield returns?

I think of what I could end up with in 30-40 years if I could take ~12% of even my current meager earnings and put them in an IRA and I can't help but be pissed off that the government is stealing my hard earned property and pissing it away. At least if I pissed it away myself I'd be solely responsible for my own misfortune.

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