Sunday, January 16, 2005

How to Retire Rich.

Yesterday's post anticipated by one day, the New York Times editorial page weighing in on the subject of Social Security reform.

Their conclusion:
Preserving Social Security while increasing savings outside Social Security is a better way to achieve a prosperous retirement.

News to me is the Administration has two proposals on the table to increase investment incentives. The first is a no-cost, no-legislation-required proposal: the IRS can implement a two-account deposit for your tax return, one of which presumably is your savings account. The other was passed in 2001 is an incentive which "offers a matching tax credit for retirement savings by low- and middle-income taxpayers." They peg the total cost at a "relatively modest" $7B. It's yet to be implemented. The cost is of course, less than 10% the amount the Bush administration was willing to shovel to it's biggest contributors.

Read the Editorial.

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