It’s a hoax. A giant hoax. If we were looking at a true privatization plan, it would be great. You and I could send our hard earned money and that of our employers to a retirement account similar to an IRA and we could invest that money as we see fit. Some in stocks, some in bonds, some in real estate, some in precious metals, and maybe some in an inverse mutual fund. (See my previous post “Review and Rebalance.”
The sad news is that any plan put forth by the government is not going to be a truly private plan. The government will still collect your money and they will tell you which funds to invest in…and you can bet that none of the approved funds will cover such asset classes as real estate, precious metals, or inverse funds. They will be either stock funds, bond funds, or some combination thereof. After all, this new plan requires that the stock and bond markets remain strong. Think what a boost all of this new investment would do to the stock market. It would literally soar…for a while, and then it would drop and it would continue to drop, but by then, the politicians that brought you this wonderful plan would be long gone. Retired with a guaranteed pension by the way.
Like I’ve said from the get-go. You have to take control of your own destiny. Do not count on the government to take care of you in your old age because it just isn’t going to happen.
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