With all of the talk and confusion going on right now about President Bush’s wish to privatize Social Security, I wonder how many of us remember that we already have a private retirement account. Many of us who work have either a 401(k) or an individual retirement account.
Do you remember two or three years ago when the bottom of the stock market dropped out? I only lost about $14,000, but I know many others who lost a great deal more. Sure, it was only on paper, but to those of us who are at or near retirement, it made a huge difference. Even with the rebound I still have not fully recovered and it will be several years before I make up this loss.
What is to stop this from happening to the private accounts the president wants to set up? It will happen again. It is a fact the market goes up and down.
Instead, the government should concentrate on finding and fixing the reasons that Social Security is losing money. These reasons include persons drawing a check who have never paid a dollar into the system. They should also stop borrowing from Social Security to fund other programs, and continue to levy Social Security taxes on people who make at least up to $200,000 per year. This would help keep the system solvent for a long time.
Bonnie Williams
Everett
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