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Subject:  Re: $5,000 IRA limit instead of $2,000 Date:  3/20/2000  5:12 PM
Author:  MrDP Number:  20300 of 103820

Chips wrote:

<<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?>>

My response:

I've thought about this aspect of SS for years. When the "SS trust fund" starts running out of money in the next 20 years or so, Congress and the President will have some tough decisions to make. One of the first options may be to cut off benefits for those who don't need them. (Come on, does Lee Iacoca REALLY need his SS check?!) But then again, since the majority of campaign money comes from the wealthy, maybe they won't cut benefits. We'll see. Tax increases are also a likely possibility. There are some tough compromises between keeping the system solvent and tax increases/benefits cuts. That's why I think that our government should give back the SS surplus we have now and let people invest it themselves. That's the way it should have been done all along. Of course, we will need provisions to make sure that some dodo doesn't lose his entire SS acount day-trading.....

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