Fixing(?) Entitlements

[MTK]

Originally Posted by Schneed10

You could give them an option to stick with the existing program or privatize it and move to investment vehicles of their choice.

This way, if somebody wants to keep it safe in T Bills, they can leave it where it is. Or, if the person takes no action at all, it stays where it is. Meanwhile the rest of us who actually understand how money works can be afforded the opportunity to grow our nest eggs.

I mean if we all paid into it, we should all have choices. Is it our money or not?

The big question is how do you protect the trust fund in the event the market tanks?

[Schneed10]

Originally Posted by MTK

The big question is how do you protect the trust fund in the event the market tanks?

You don't. If I elect to put my portion in the stock market, my portion tanks. If you elected to keep yours safe and sound in bonds and money markets, yours doesn't tank.

Or, as added protection, you could put rules into it: if you're 57 or older then you must be in t bills, no equities allowed, something like that. To keep the masses from financially killing themselves in a bad market.

If you're younger than 57 and the market tanks, you have plenty of time to recover before you're 67.

[CRedskinsRule]

Originally Posted by MTK

The big question is how do you protect the trust fund in the event the market tanks?

I would think you have a constitutional amendment that mandates a 5-7 year low yield low risk lockbox that has a defined cost basis and a neutral party overseeing it.

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