This is an excerpt from a post on my friend MAGUA'S new LIBERALS SUCK blog. He got it from the "top ten liberal lies" at Boycottliberalism.com- Home By Thomas N. George, Editor of BoycottLiberalism.com© 2004. It lists numerous Liberal mischaracterizations made to thwart freedom in this country. Point # 9 explodes the "risky" liberal mischaracterization of this basic fact: SOCIAL SECURITY REFORM NEEDS TO INCLUDE PRIVATE ACCOUNTS! This has been neglected on this blog for too long; Here is my first attempt at correcting that oversight. Also, see the Blog Alliance for Social Security Reform website for the truth about this program, and the efforts to bring it into the 21st century. Tip o' the hat to MAGUA, who clearly "gets it."
Here's the excerpt:
Privatizing social security is risky. Contribute $300 a month to Social Security and you may get $1,800 a month when you retire. Sound like a good deal? There was a story about Dick Gephardt's mother living on Social Security and having numerous checks she had written returned for insufficient funds. Gephardt politicized the event by stating that this was an example of why Social Security should not be privatized, because if it were not for Social Security his mother would have been much worse off. Please note that the S & P 500 has returned more than 10% over it's lifetime. Therefore- if you invested $300 a month in an S & P 500 mutual fund for 40 years at the end of that time (enter these numbers into any compound interest calculator) you would have approximately 2 million dollars (Please note that these are conservative numbers). This means you could withdraw almost $200,000 or 10 percent a year and never exhaust your money. Break that down and it is $20, 000 a month. Social Security does not sound so good any longer. Please be advised that the key to obtaining wealth is systematically investing for the long term. There is no quick sure fire scheme to getting rich. If Gephardt's mother had been investing in mutual funds her entire life instead of Social Security- she would have been much better off at the present. Also, please be advised that privatizing Social Security helps the poor the more than anyone. The rich invest money in 401K plans. The poor, the clerk at a convenience store or a customer service representative doesn't have excess funds to invest and so their only investment vehicle is Security Security, which in reality is just a bond fund.
--I am sad to report that many commentators are writing the obituary for this policy. In the words of John Paul Jones (The Founding Father, not the one from Led Zeppelin), "(We) have not yet begun to fight!"
FIGHT THE POWER, FOR YOUR OWN RETIREMENT ACCOUNT!