Ashley Barnett, Personal Finance Blogger from MoneyTalksCoaching.com, shares her thoughts on Social Security. We know the system is broken but what can be done to fix it? She has an idea and she wrote about it in her blogpost “An Argument For Privatizing Social Security“.
She talks about who Social Security is for, it’s not just for retirees anymore, and how employees only pay 4.2% of the 10.4% paid into FICA (Federal Insurance Contribution Act).
To repair the system and maintain it in the current state we can do any one of the three following options:
- Lower Benefits
- Increased Taxes
- Borrow (more debt)
I don’t like any of those options, so Ashley explains to us the benefits of Privatizing Social Security:
- Your money stays with you
- Unused funds can be inherited
- The government can’t reduce or withdraw your benefits
Privatizing Social Security sounds scary, doesn’t it? Our MoneyTalksCoach guest uses practical math to explain how Funding Private Accounts, even in a conservative investment option, will net someone more money than Social Security ever could. Sounds like a reasonable solution to me!
Do you have suggestions on how we can fix our Social Security problem? Please leave comments below and let’s continue the discussion. I would love to get another conversation going for a future podcast episode.
Read more of Ashley Barnett’s articles on MoneyTalksCoaching.com
Follow Ashley on Twitter: @MoneyTalksCoach