Projects can be personal especially when something like Social Security system failure is looming. This post is part of a blogging “odd couple” duet, hopefully with a lot of engaging conversation to follow, with Mary Emma Allen at www.homebiznotes.com. Her post on the same subject is from a self-employed/home business perspective, mine more from the point of view of an individual. Both are designed to deal with the question:

“At current rates, Social Security payouts will exceed payments made into the system within the next ten years. What should we do about Social Security?”

My preference would be to move the money towards personal investing to get people weaned off of a failing system. I thought I’d poll the web sites of the candidates who I believe will compete in the Presidential election to get an idea whether or not a solution is possible:

Barack Obama- “…he does not think it is necessary or fair to hardworking seniors to raise the retirement age…strongly opposed to privatizing Social Security…look for ways to strengthen [it via] the payroll tax system…increase the maximum amount of earnings covered…”

Mike Huckabee- “…completely eliminate all federal income and payroll taxes..personal, federal, gift, estate, capital gains, alternative minimum, Social Security…..instead we will have the Fair Tax, a simple tax based on wealth….”

Clearly these views are at the ends of the spectrum and are probably both unrealistic. My conclusion is that Social Security will stay about the same. More taxes are unlikely and the Fair Tax “alternative” doesn’t seem to address Social Security at all. Therefore, look for a system that has a high probability of running out- high enough so that you better not count on it.

So- what should WE do about Social Security? Sharpen your pencils and put your retirement plan together!

What do you think?

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Post from: EveryJoe

Counting on Social Security? Your Next Project Better Be Your Retirement Plan