Sunday, January 16, 2005

The New York Times: Paul O'Neill: Who Wants to Be a Millionaire?

I should admit I am biased because I am a fan of Paul O'Neill. So today's NY Times OP/Ed piece by him had my interest from the start.

Below are some highlights of his plan to save social security.

The New York Times > Opinion > Op-Ed Contributor: Who Wants to Be a Millionaire?
  • "We should ask ourselves what would be a worthy aspiration for the financial security of retired Americans in the years ahead. My answer is that we should establish a process that will produce a substantial annuity for every American at retirement age."
  • "The problem with the current arrangement is that our contributions are a tax, not savings. So we should begin by agreeing that we are going to require all Americans to save, individually, to provide for their financial security in old age."
  • "Financial security begins with ownership of real assets; so the money saved each year in this plan would be the property of the person who saved it."
  • "The money would then be invested in broad-based index funds with an objective of matching the overall rate of return for all investments in the United States"
  • "Further to the definition of financial security: it means enough money in retirement for all needs - food, clothing, shelter - and including medical needs like prescription drugs. If we could work toward this idea, we could reduce our current dependence on the political process for these necessities."

Read the article and I bet you will be convinced.

BTW Greenspan seems to be already on board.

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