Friday, May 13, 2005

Risky Investments and SS

In West Virginia the Democrats are ahead of President Bush. Don Surber of the Charleston, WV, Daily Mail reports:
With their $5.5 billion pension bond proposal, Democrats in West Virginia are promising voters that Wall Street will average better than 7.5 percent returns annually for the next 30 years. Most of that money will be used to shore up the teacher pension plan. If Wall Street is good enough for their teachers, then it should be good enough for my kids, who will face 30 percent cuts in their Social Security when they retire. President Bush ought to visit West Virginia and endorse this pension bond plan -- and double-dog-dare Sens. Bob Byrd and Rockefeller to denounce the $5.5 billion pension bond as a "risky scheme."
If retirement funds invested in stocks is good enough for the public employees of Virginia why can't my kids have option of doing the same? Plus personal accounts prevent the Ponzi politcians from spending the money this year on pork to get them reelected. Tip: James Taranto - Best of the Web Today

1 comment:

DarkSyde said...

There is one problem. As a ex-investment advisor, we used SS as the basis of any plan. The lowest rung on the ladder of safety.
The practical objections ot the Bush plan are:
1. It involves huge borrowing. We could borrow less and extend the solvency of the current plan to like 2070
2. Benefit cuts-always a dicey issue if even mentioned
3. A lot of folks don't trust politicians messing with their money, and Bush has a real credibility problem right now even worse than most.