Enough already with the references to Social Security as a Ponzi scheme. From the beginning it has been a pay-as-you-go government system and never an “investment.” It is social insurance.
Call it socialism or welfare or even a bailout, but don’t call it an investment.
Some people think they can get a better return on their tax money than the government will pay during their retirement years. If it were truly an investment, that would probably prove true (unless you invested with the wrong adviser or we had another depression). But Social Security will provide income if you become disabled, or support your family if you die. That is insurance, not an investment.
Those folks should take a look at a 401(k) or an IRA or even tax-deferred annuities. We have many vehicles for amassing wealth in this country.
To anyone who really thinks Social Security is not effective, I ask them to consider a trade. Would you like to keep all your tax money in exchange for letting my mom and dad live in your guest room?
Social Security is not and never was a Ponzi scheme. I paid into Social Security since I was 14 years old. I am not only entitled to the return of the money I paid in, but the interest I earned for 64 years. Compounded, that’s about five to seven times what I paid in.
Just increase Social Security tax on the big money incomes as President-elect Obama proposes, and we’ll probably be solvent for a long time.