The clatter is starting up again over the privatization of Social Security. With this plan, the individual gets to decide how to invest their Social Security funds, something akin to a public 401k program. The bulk of this new-found investing activity, however, will go towards Wall Street and the stock exchanges.
The idea of being able to select one’s own investments sounds all well and good, but Americans may want to start asking themselves just what is at stake. In fact, if you’re investing in stocks, stock-driven mutual funds or a 401k, you stand no better chance in redeeming these investments at retirement from a privatized Social Security plan as you do from an increasingly at-risk public Social Security plan. Read the rest of this entry →