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Social Security

I propose the following solution to address the problem. Over a thirty-two year period the Social Security trust fund will be weaned off and replaced by a Citizen’s Wealth Funds. Every year for thirty-two years the Social Security trust fund will receive three percent less in collected social security taxes and the Citizen’s Wealth Funds will receive three percent more until 100% is directed to it.

Current retirees will continue to receive their benefits from Social Security until the last retiree is deceased. Individuals still working will continue to pay into the Social Security trust fund and the Citizen’s Wealth Funds until the transition period is over or until they reach retirement age during the transition period. This group of retirees will receive benefits from both Social Security and Citizen’s Wealth Funds until the last retiree included in the Social Security system is deceased. New individuals to the workforce will pay into both Social Security and Citizen’s Wealth Funds during the transition period and will only receive benefits from Citizen’s Wealth Funds once retirement age is obtained.

By letting each individual citizen control their own retirement account by individual needs and personality you have total freedom where your retirement monies are invested. This flexibility and diversity of options will grow the individual’s retirement faster than current system which actually have shrunk the benefits over time. An individual will be able to choose to invest in anything from bond funds to derivatives funds managed by professional fund managers from a select list of approved funds. There will be a few restrictions such as maximum percentage of total value allowed to be invested in one single fund to prevent ruin and total loss of retirement funds. Funds will be audited quarterly to make sure they are acting in the best interest of their clients as well to verify performance and fees charged are reasonable. Penalties for wrong doing should be severe and designed to deter illicit behavior by funds and their managers.

This solution will gradually solve the giant unfunded liability created by the federal government. It will have a very positive effect on the economy as demand for viable investments will increase values of stocks, bonds, real estate and provide additional risk capital for start-ups. Citizens will also feel they have a stake in the wellbeing of the economy and will work harder as they will see their wealth increase month to month along with their paychecks.

Together with my other proposals and legislations our economy and GDP can double over ten years, that’s a $34 Trillion economy that can pay of off the National debt and lower the taxes even further.

Paid for by Carl Persson for US Congress
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