Privatizing Social Security

[serryjw]

Was just having this conversation with a friend. 3 points I want to make that you can use in your arguments with the 'other side'

1) According to the Dept of Labor 95% of American retire on social security or are dependent on charity or family. In the last 40 years people had the opportunity to INVEST and they didn't WHY? What would make this any different.
2) In the last couple of years 1 1/2 million Americans went back to work AFTER 70 due to the implosion of Enron, Worldcom and the rest of them.
3)MAYBE 2% of Americans have EVER had a self-directed portfolio. How is a 25 year old going to KNOW what to do? How are they going to be protected from the future Wall Street whores that try to sell them a pig in a poke?

[FloridaPat]

1. A few comments.

1. People did invest. I made a ton of money. A lot of people I know made a ton of money. Then the bubble collapsed and our 401K's are now 1K's. Even Donald Trump went bankrupt a couple of times. So did Wayne Newton. Looks like Michael Jackson may be next.

3. The System doesn't seem to be interested in teaching the common folks about money. We have to hire managers. Managers steal money. A lot of people have ended up flat broke because of theft or stupidity.

[papau]

2. Same experience here

:-(

[serryjw]

3. A few commnents back

the 95% that have retired in the last 50 years DID'NT invest and lose their money.They never had enough money to invest. They put money at best in a savings account. 401K's are VERY new concept to replace company pensions.
Your second point highlights my point that they will get ripped off with bad advice and high commissions. Unless the kids come from an investing family they will not have the knowledge (you're right, no one is teaching it) to protect themselves