Tuesday, April 12, 2005

Small Change

Small Change

A trillion dollars in Social Security is a relatively small amount when it is divided into 270 million private accounts. Registered Rep is right that the brokerage community need not salivate over the possibility of private SS accounts. The money really does need to go in low cost index funds--at least until the account balances become substantial.

Polls show that there is little enthusiasm for the change but I believe it is an important change that needs to be made and one that will be made. It is important that retirement funds be held in a "lock-box" and it is important that even relatively poor Americans become owners of their retirement accounts. More poor will escape poverty when they see that it is not only possible but likely that they can do so.

The initial change is small. The long term results will be very large. President Bush has a lot of strings to pull and levers to push and I believe he will get the program through a reluctant house and senate.