If the Republicans really want to privatize Social Security, then read my proposal. Here is a way to truly satisfy the masses, and I even believe Senator Ted Kennedy would give me a high five. This whole debate has gotten out of hand, and needs a different viewpoint to move us all to the center.

The Bush Administration last week tried to sell us a bill of goods in the form of Social Security Reform, which would include privatization of up to 2/3% of an individual's social security payments that are withheld from our work checks for those under age 55. My gripe is that President Bush will not go on record by saying if privatization brings greater returns and more money for retirement, then the current Social Security Benefits will be cut. The whole notion of creating these investments accounts is the same reason why companies ended their defined benefit plans, and implemented the 401K, 403B, and Simple IRA. They shifted the onus and responsibility of retirement from the company onto the individual, but in reality this exchange was more about money than anything else. When the company does not meet their investment projections under a defined benefit plan, they still are required to pay a certain amount, generally on a monthly basis to an employee throughout retirement.. This is not the case when your retirement plan is a 401K, 403B, Simple IRA, etc. It is your responsibility as an employee to make sure that you will have enough income throughout retirement, therefore any market or interest rate risk, rest squarely on your shoulders instead of your company. This whole notion of an ownership society is the hallmark of a capitalist nation. So now we really want to promote an ideology of self-reliant citizens who are in charge of their own retirement!

President Bush last week implied " that the current Social Security system is unfair to African-Americans because they generally do not live as long." So is privatizing Social Security going to allow African-Americans including myself to live as long as Caucasian Americans ? Maybe a look at the healthcare of African-Americans, and the security in the inner city is what Bush should be looking to improve, in order to increase our life expectancy! However let me offer a solution that actually might be fair to all. First the cap on earnings subject to Social Security should be increased from $90,000 to $200,000. Do not get mad, and stop reading this article just yet. Also, those under age 35 should be allowed to put 90% of their Social Security payments withheld from their checks to go into private accounts. Anyone under age 35 will have the option of taking the proceeds of the private account just as one has under their 401K with a slight exception. You must have contributed to the plan for at least 15 years or have attainted age 50 by the end the year, in order to access withdraws, however the 10% early withdraw penalty would still apply in most cases unless 55 and retired or age 59 1/2. This is a solution to the disenfranchisement of African-Americans and other minorities who have a lower life expectancy than their Caucasian counterparts. In my opinion, just stating the Social Security privatization is a better way for African-Americans is an absurd idea without any provocation by President Bush.

Everyone else 35 years and up need to be covered by the current Social Security Plan unless they opt out and choose the privatization. I really do not know if FDR had this in mind, yet a compromise is all we have left to complete. The payroll tax for Social Security withholdings needs to be raised to 8.5%, otherwise how else do propose to pay for this transition. Now I must admit that the numbers were made up without careful calculations, but they are a good starting point. The reason for raising the withholding ceiling to $200,000 is an attempt to make sure Social Security payments in the future can be made without excessive loans by the governments which will continue the growth of the deficit. While I concede, the word social brings to mind a whole community; the word privatization has a different calling, and centers more around a me concept. However my plan can truly put those who are approaching retirement at ease, while pleasing the young who believe in the power of diversification and risk management. Now I put my personal stamp on this Social Security proposal.

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