Social security

The case for privatizing social security. Part 1 SS takes 6.4% of your check and the employer matches that. Of this amount 2.2% used for disability claims and survivor benefits for children and spouses. This leaves 4% to invest or double that including the employer contribution. If a person age 62 had a life time average earnings of $30,000 they would receive $1,400 per month. The average person will collect for 20 years. To purchase a life time income of $1,400 per month would cost $200,000. If a person invested this in a private account and earned five percent interest, he would have $215,000 or enough to purchase his own pension of $1,400 per month. If invested in the stock market which averaged 10% over the past 100 years, he would have $650,000. If he then invested this in a CD at 5%, he would receive $2,700 per month and maintain his $650,000 principal to pass on to his heirs. Part 2 The private social security money would be invested in a program similar to the federal employee savings plan started in 1986. The money would be after tax and accumulate tax free. There would be three account options including a fixed account, stock account, and a bond account. The money could not be touched until age 62. Part 3 The plan would start January one of next year. Any person who turns age 25 would automatically enroll and his funds would be sent to the new saving account. In 37 years, everyone would then be transferred and social security would end. Part 4 Each person would own their account and any money left after they die would pass on to their heirs. This would eliminate the current racism which allows White people to collect more than Blacks because of life expectancy. Part 5 It will be an economic boom as it will add billions to the stock market allowing companies with additional funds for growth.