Simply Politics & News

[shermann7]

Giving people the ability to invest some of their social security money is a sound idea. In the Bush plan, this was optional - One could do it the old way or the new way. Having said that.

1. The Bush plan changed Social Security increases to being based on wage increases instead of the Consumer Price Index. That is a big cut.

2. It also said that the money for their investment account is a loan of which approx half is paid back as interest on the loan.

3. The amount of money put in the investment account is 1/6 of the contribution at retirement time. Your earnings go against the other 5/6 of what your get. For example, If you Earn 600% on your investments, then you get none of your other 5/6 of money contributed. This means that you have to earn over 600% by retirement on your investment account to receive any additional money over what you would get without having an investment account.