Sep 28, 2011
#32: Ashley Barnett, Personal Finance Blogger from MoneyTalksCoaching.com, shares her thoughts on Social Security.
We know the system is broken -- but can it be fixed?
She has an idea and she wrote about it in her blogpost "An Argument For Privatizing Social Security".
Ashely talks about who Social Security is for, it's not just for retirees anymore, and how employees only pay 4.2% towards FICA (Federal Insurance Contribution Act, or payroll taxes).
To repair the system and maintain it in the current state that is it in can be 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 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.
For more information, visit the show notes at https://moneyplansos.com/032-privatizing-social-security-with-ashley-barnett/