However, Social Security was never set up to be an investment account. It operates like insurance, where, as long as you pay your premiums you get your benefits if you need them.

This allows people like stay at home moms, or like my cousin who was disabled in high school to still collect benefits, even though their lot in life wasn’t to work for 30 years and save up money for long term investments.

This business about Social Security going bankrupt is bunk. As long as there are people with jobs, Social Security will have income. Even after the dreaded 2042 date, when the surplus is scheduled to run out, the fund will be able to pay 70% of the benefits it’s paying now to every retiree and disabled person. So all we need to do is cover that 30%.

Actuaries say that a mere 1.89 percent hike will do the trick. That’s 1 percent to wage earners, and .89 percent to employers.

ABC News

As Social Security is currently structured, individuals must first be employed. Secondly, employee contributions are matched by the employer. These two things are prerequisites for the continual funding of the program. If I were a proponent of Social Security in its current format, I would be a strong proponent of a vibrant and growing economy that allows for the perpetual contributions; from employees and employers.

You can’t have Social Security without economic growth. No employers, means no employees, means no contributions, means no Social Security funds over the long-term. The Government just can’t tax non-existent assets and profits to meet its obligations. Assets and profits are a prerequisite of Social Security. With me so far?

Now, here’s the kicker. If you assume that the current system requires a growing economy to sustain itself, why would you not translate that same assumption to the Personal Account structure of retirement funding?

Admittedly, there are no guarantees either way. That’s the very definition of a risk; no guarantees. Both structures involve risk. And BOTH sides of the issue (pro/con reform) assume a long term growing economy with occasional set backs.

I planted several Silver Maples in my backyard 15 years ago. The trees were barely 3 feet tall when I planted them. I did my research on what trees would do best considering soil and weather conditions. I almost went with Weeping Willows, but was advised against them. They grow very quickly, but according to the garden store owner, are ‘stringy’ and disease prone. My Maples have survived severe winters, summer droughts and insect infestation. But through it all, most of them have managed to survive; over the long term. They’re now about 40 feet tall. Long-term investing involves a similar patience and risk taking.