"Savings Plans"

[Peter]

One of the Bush ideas that I liked was the establishment of "savings accounts" for any purpose. In other words, people could set money aside like a 529 plan but it did not have to be restricted to education. Obviously, the advantage would be the flexibility that this would afford people.

 

I have not heard anything about this in the past year or two. Now that GWB has a strong majority in Congress, I hope that they do something like this.

 

Has anyone else heard anything about this?

[Alaska Darin]

One of the Bush ideas that I liked was the establishment of "savings accounts" for any purpose. In other words, people could set money aside like a 529 plan but it did not have to be restricted to education.  Obviously, the advantage would be the flexibility that this would afford people.

 

I have not heard anything about this in the past year or two.  Now that GWB has a strong majority in Congress, I hope that they do something like this.

 

Has anyone else heard anything about this?

103058[/snapback]

Yes. Initially the legislation was offered as "Life Savings Plans" (LSAs). It died on the hill because Democrats think it favors rich people.

[DC Tom]

Yes.  Initially the legislation was offered as "Life Savings Plans" (LSAs).  It died on the hill because Democrats think it favors rich people.

103062[/snapback]

 

Encouraging saving favors rich people?

 

Hell, let's just ban printing money, since it favors rich people: they get proportionally more of the printed bills.

[Alaska Darin]

Encouraging saving favors rich people?

 

Hell, let's just ban printing money, since it favors rich people: they get proportionally more of the printed bills.

103074[/snapback]

I didn't say it made sense. They are Democrats after all. The same party that gave you Fritz Mondale, Mike Dukakis, and John Kerry as their Presidential offering.

[Paco]

I didn't say it made sense.  They are Democrats after all.  The same party that gave you Fritz Mondale, Mike Dukakis, and John Kerry as their Presidential offering.

103083[/snapback]

A veritable Who's Who of Candidates...I might add.

[GG]

One of the Bush ideas that I liked was the establishment of "savings accounts" for any purpose. In other words, people could set money aside like a 529 plan but it did not have to be restricted to education.  Obviously, the advantage would be the flexibility that this would afford people.

 

I have not heard anything about this in the past year or two.  Now that GWB has a strong majority in Congress, I hope that they do something like this.

 

Has anyone else heard anything about this?

103058[/snapback]

 

He floated two proposals in his first term - Life Savings accounts & Permanent Savings accounts (?). Both got caught up in hysteria over privatizing SS, and were tossed aside. Hubbard & Lindsey were sacrificed from the economic to appease the Beltway.

 

Then Bush brought it up at this year's SOU address, and it's back to the races.

 

The best analogy is a 401k plan vs traditional retirement plan. The only criticisms that are remotely in the ball park of being valid is that left to their own devices, people wouldn't save or would blow it all on Enrons, Worldcoms. But that could be eliminated with same payroll deductions, and not allowing people to buy individual stocks in their gov't retirement plans.

[whynot]

He floated two proposals in his first term - Life Savings accounts & Permanent Savings accounts (?).  Both got caught up in hysteria over privatizing SS, and were tossed aside.  Hubbard & Lindsey were sacrificed from the economic to appease the Beltway. 

 

Then Bush brought it up at this year's SOU address, and it's back to the races.

 

The best analogy is a 401k plan vs traditional retirement plan.  The only criticisms that are remotely in the ball park of being valid is that left to their own devices, people wouldn't save or would blow it all on Enrons, Worldcoms.  But that could be eliminated with same payroll deductions, and not allowing people to buy individual stocks in their gov't retirement plans.

103196[/snapback]

 

Where can I find further info/statistics? What protection is there against a market Rosen?

[DC Tom]

What protection is there against a market Rosen?

103220[/snapback]

 

Personal responsibility. Don't be in the market when it crashes.

 

 

Why is that such a hard concept? Why does it have to be "Please, Mr. Federal Government, protect me from myself"?

[whynot]

Personal responsibility.  Don't be in the market when it crashes. 

Why is that such a hard concept?  Why does it have to be "Please, Mr. Federal Government, protect me from myself"?

103284[/snapback]

 

First off, I don't see Social Security as anyone's primary source of savings for someone's retirement. I'm sure we agree on that statement; the majority of your savings should (and currently IS) privately controlled. I see Social Security as a safety net; there to protect seniors if god forbid their retirement money is invested in something that the bottom falls out of. I don't believe in tying this safety net to anything in the private sector, it should be absolutely guaranteed. I don't want a market Rosen to result in seniors being left out on the streets.

[HopsGuy]

Why does it have to be "Please, Mr. Federal Government, protect me from myself"?

103284[/snapback]

 

 

Or "Protect me from my broker!"

 

Then again, you should hear some of the inane questions we get each day. Someday I'll post a list. Many are along the lines of "I want to buy this if it goes up, but if it goes down I want to cancel the order."

[DC Tom]

Or "Protect me from my broker!"

 

Then again, you should hear some of the inane questions we get each day.  Someday I'll post a list.  Many are along the lines of "I want to buy this if it goes up, but if it goes down I want to cancel the order."

103478[/snapback]

Wouldn't we all...?

 

For every one you've got from the investment world, I've got another from my days working in a pizzeria. "Can you cut my pizza into ten slices? I'm not hungry enough to eat 12..."

[GG]

First off, I don't see Social Security as anyone's primary source of savings for someone's retirement.  I'm sure we agree on that statement; the majority of your savings should (and currently IS) privately controlled.  I see Social Security as a safety net; there to protect seniors if god forbid their retirement money is invested in something that the bottom falls out of.  I don't believe in tying this safety net to anything in the private sector, it should be absolutely guaranteed.  I don't want a market Rosen to result in seniors being left out on the streets.

103475[/snapback]

 

Noble goal, but impossible to maintain at current demographic trends.

 

The underpinning of Great Society was the growing population, where the employed outnumbered the retired, and healthcare consisted of two aspirins and a call in the morning.

 

You can have your benefits guaranteed, if you're ok with getting $10/year.

[KD in CA]

Yes.  Initially the legislation was offered as "Life Savings Plans" (LSAs).  It died on the hill because Democrats think it favors rich people.

103062[/snapback]

 

Yeah, just like raising the 401(k) limit to $15,000 is favoring the rich people. Of course, no one is allowed to fully fund their 401(k) at that level because those Plans are subject to "discrimination" testing to keep the "rich" people from saving for their own retirement instead of letting the government pay for it.