February 2005
Additional Provisions:
There will be a maximum account value of $500,000.00. This plan is aimed at creating security for all Americans, and it is not intended as a vehicle for the rich to transfer massive sums of wealth to their heirs. Bigger is not always better, and this plan can only sustain so much in collective resources without having negative consequences for our country. This plan is designed to provide supplemental retirement income to working class Americans who may not have other retirement assets apart from Social Security. It is not designed to help people become wealthy; many wealth creation plans already exist. The integrity of this program should not be compromised in the pursuit of greedy desires.
Lending institutions must not be allowed to let people borrow money against their account values. In other words, these accounts are not designed for the purpose of securing loans. A provision will need to be in place that forbids lenders from extending credit on this basis. The primary reason for this provision is the fact that the amount of inheritable assets will be dependent upon how long a person lives. Therefore, it is impossible to determine the amount of assets that would be available for collateral.
This plan will not allow deductions for college or first time home purchases; many such savings plans already exist. This plan is designed to be a pension program, and it should not be compromised by the addition of unnecessary provisions. This plan will provide Social Security with add on accounts that may be a supplement or substitute for the traditional employer based pension program. It will also allow small businesses greater access to pension participation.
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