A Capitalist's Social Security, 401(K), And Retirement Plan Reform Program

What if there was an easy way to implement a whole new approach to retirement funding, pension planning, and Social Security? Would the politicians be interested? Let's find out.

What if the new plan actually reduced payroll taxes, cut prices, created jobs, increased salaries, raised shareholder dividends, partially funded decreased healthcare costs, and was available to everyone?

Sound too good to be true, but it's actually doable. The reasons for the present system's failure are mostly political; the solutions are clear, practical, and non-partisan. What we want is a less expensive system for assuring that everyone is able to retire with an adequate income, higher than that provided now by Social Security.

What we need is a simple program, part mandatory and part voluntary, using experienced trustees who operate within the strictures of the prudent-man rule--- a risk-minimizing legal doctrine that restricts investments to those that seek reasonable income and preservation of invested capital--- SIBORAP Tier One investments.

The 2007-2008 stock market correction and credit crisis laid bare the weaknesses of all self-directed retirement accounts. First of all, they are not (and never were) pension plan equivalents. They were cheap-to-provide replacements for fully funded defined benefit pension plans--- supplemental programs at best.