The Galveston “Alternative” to Social Security
It’s January 2013 and President Rick Perry has abolished Social Security. Let’s put a positive spin on things and see how the Galveston Alternative will work for the rest of the country.
In the late 1970s, county employees in Galveston, TX opted out of Social Security. They opened personal savings accounts instead. Rick Perry, in his book “Fed Up,” says:
“…employees in those private plans, having exercised their liberty at Washington’s sufferance, are reaping the benefits.”
And Herman Cain said that retirees in Galveston are “making at least 50 percent more than they would ever get out of Social Security.” (That statement was debunked by a fact-checking site.)
Basically, if you made a ton of money during your working years, you’ll enjoy a nice cushy retirement with the Galveston program. On the other hand — according to the Government Accountability Office — the lower your income and the longer you live after retiring, the less you’ll benefit from this program compared to Social Security.
The financial planner who devised the Galveston plan said:
“We did not weight it in favor of higher- or lower-income people. You put your money in, you invest it, and you get your money out.”
Also, unlike Social Security, payments under the Galveston plan do NOT increase with inflation.
No wonder the Free Marketeers like this “alternative” so much better.
A professor from Syracuse University said:
“If you’re single, if you’re well off and you die within 10 years of retirement, maybe you’ve done better. For most people, it’s somewhere between ‘very bad’ and ‘not very good.’”
So there you have it. This might be what we’re all looking at in 2013. Smile.