Reply #20: I highly doubt this [View All]

[solarspa]

I am starting to do some research on these private accounts. The proposed models offer very few choices in how you invest the 2%. All of the funds look like your typical fund investment. You will not be able to take the money out--ever...until you retire. Upon retirement you will be forced to turn your investment into an annuity. This will be a lifetime monthly income. When you die your payment stops. Your spouse receives nothing unless you buy a joint annunity greatly reducing your income. Everyone needs to start doing some research about what these private accounts actually promise. There will be a slightly greater return on the investment with risk. Possibly your monthly check might be higher...maybe. The risk is that the markets tank before you retire. Probably no one will inherit your money unless you are rich on the side. The whole thing is starting to sound exactly like social security with risk.

Read up at this site:

http://www.socsec.org/commentary.asp?sort=2003-2004