No. of Recommendations: 6
That's the proposal from Nobel Prize winning economist Richard Thaler.

The big drawback with the annuities sold by private insurers is the 15% to 20% skimmed off the top by the insurer to pay for multi-million dollar executive salaries, private jets, and sales conferences at 5-star resorts with free hojos. The guy that runs Social Security makes less than $200,000/yr and flies commercial.

Nobel laureate Richard Thaler thinks you should be able to use your 401(k) to get a bigger Social Security check. Other experts aren’t so sure.

That’s where Thaler said his new idea regarding Social Security benefits would come in.

The plan would let you take a portion of your 401(k) benefits — say, $100,000 or up to $250,000 — and send it to the Social Security Administration.

What you would get in return would be the only indexed annuity that’s guaranteed by the federal government at a fair actuarial value [i.e., minus the 15%-20% skim of a private insurer], Thaler said.


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