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Author: Chipsboss Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75835  
Subject: Re: $5,000 IRA limit instead of $2,000 Date: 3/16/2000 8:30 PM
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I wish you the best of luck in getting that IRA limit raised. You can predict the objections "This will benefit only the rich." That's nonsense, of course, but it's predictable nonsense and might prevail. Although the change is too late to benefit me personally, I'd like to see you a happy camper. The additional accumulation of capital in the American economy would benefit everyone.

Here's another predictable objection: IRA savings simply displaces other savings and does not increase the total savings in the economy. This will come from sources who really object to capital formation in general but won't admit it. All I can say is, "Make 'em prove it!"

Here's one point to ponder:

"What we should be trying to do is to encourage people to establish private retirement accounts and help them take pressure off the Social Security system," said Rep. Dennis Moore, D-Kan., one lawmaker who has proposed a bill increasing the limit.

That's an excerpt from the article you cited. How does the establishment of private retirement accounts take pressure of Social Security? There's a benign interpretation: If more people have substantial retirement income from IRA's, there will be less clamor to increase benefits. Malignant interpretation: If someone has substantial retirement income from IRA's, Congress will deny that person the promised Social Security benefits on the grounds that the benefits aren't needed. This isn't a prediction; it's only a warning "Beware the sucker punch!" Prudent people who provide for their own retirement may be punished for this by losing their promised benefits. Actually, the Social Security administration has taken to hedging the promise with the expression "There for you when you need it." Does this sound like a warning that, if you don't need it, you won't get it?

Chips, who at age 60 guesses it would be really hard for the government to wiggle out of the SS benefits promised to him, but that's only a guess
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