re: Baby Bonds could replace Social Security at a fraction of the cost

quote:

---

’ve always felt that the only way to curb government spending is to completely overhaul Social Security

---

I have touted this idea for many years as a replacement for Social Security and it is very simple and nobody has been able to undermine it

When you register for Social Security the government will create and fund an account for $10,000. At 7% money doubles every 10 years which is roughly the stock market. That account would be invested by a company and the person would not have access to that account until much later.

You are required to pay back the government at $10,000. It is withheld from your paychecks until fully repaid and then you no longer make any further payments. If you pass away before the age of 55 all of that money reverts back to the government

At age 55 or 60 depending on what you choose or what the government decides that money would vest. None of this prohibit you from opening 401(k) or other retirement plans. Generally around age 65 you would have approximately $1 million. If you were married your wife would have $1 million and you both would have your own savings from work etc.

Imagine this from an inner city perspective within one generation you would not have to have Social Security and because of the income available you would no longer need Medicare.

The only problem I can see with this program is that eliminates all of the money that Congress is using to spend on whatever they want by borrowing from the trust fund and bankrupting it.