It’s All On You!

What if you were forced by law to save ten percent of your income?  Some of you might argue that Social Security and other taxes are already doing that.  However, what I mean is an IRA (Individual Retirement Account) opened up in your name, with your information and beneficiaries that you designate.  Let’s say you couldn’t access it until you turned 60 years old.  From the day you start working, 10 percent of your pre-tax income goes into this account.

Would Americans go along with this?  My suspicion is probably not.  We don’t like being told what to do with the money that we earn.  In my opinion, on the same line of thinking, we shouldn’t assume that there will be some social safety net there for us when we get old either.  The freedom to do with our money as we please also means the responsibility to bear the burden of our choices with money in the future.  Social Security may end up being an enduring part of growing old in America but I would rather assume it’s not and be surprised if it is.

I know what you’re thinking, “Again Travis!  Money, Again!”

Again and Again and Again!

I just don’t see how we can want the government to keep their hands off of our money now but at the same time want the government to secure our future through things like social security and medicaid.  Of course we are required by law to pay into these things with our paychecks but as I have said in times past, I’m not relying on these things to be available when I get old.  If individuals can be tempted to squander their own incomes on credit card interest, giant car loans, and even more giant student/mortgage loans, all while not saving for the future, what do we expect of the individuals that run  a government of a country that’s always in debt (for most of my living memory anyway).

This is not an indictment of the government but more an admonition to get us to think more reasonably about how we are preparing for the future in terms of our health and personal finances.  Are we doing everything we can to take our destiny into our own hands and be responsible for the choices we make today?