Bush Wants Your Money
Social Security Reform May Take Away Our Retirement
Story by Shana White // Art by Wesley Vara

It was not until this year that I decided to think more about planning my future, which involves my job, health and future family. But with all the financial pressures I know I'll be facing, my main thought was about being retired and having the benefit of living off my social security check. When I start reaching age of 60, I would like to live in my own house, which is paid off and also travel more. But to do this I would have to be retired and having some social security coming my way.

But it seems like President Bush has got different plans for me. In recent weeks, he has been pushing hard for a proposal, Social Security reform, which may possibly make retiring something not for my generation. Watching him on the news leaves me wondering, is my whole dream of even retiring even going to be an option? And if this reform does go through, what are other people my age doing to do to prepare?

President Bush's proposed reform will allow the earning for social security to go towards investing in stocks and bonds.   This is geared towards young workers and people up to the age of 45.   Many people may not know about the reform and how it works. If this reform does pass, many people my age may be working in vain, paying into their social security that may not even be there when they're older.  

I also did a little research on other option for personal retirement plans such as IRA'S. Major banks such as Bank of America and Wells Fargo offer it. An IRA (Individual Retirement Account) is an account that you can save for your retirement. You may contribute 100% of your earned income to a maximum of $3,000 in an IRA each year until you turn 70 years old.

When I ask people my age what they think about our social security set up changing, most are unaware of the reform. David Madrid, 26 year old, says that he never thinks about is future that far ahead. He says, “Average people like myself don't think about things like that. Maybe in our 40's we'll have to think about it.”

Since young adults like David and myself (I'm 24) may be working to pay off bills, it often becomes difficult even to imagine your financial condition at retirement age. But if we aren't looking that far down, who is?

Well, my cousin for one.

A couple of years ago my cousin Lourdes opened her first CD (certificate of Deposit) account.   What's a CD?   CD's are sort of like an investment only you can cash out of it unlike IRA'S. The minimum you can open up an account is $1,000. You can have an option of how long you want it for, 7 days and up. When my cousin opened a CD account she was 19-years-old, younger than the average person who invests. She says that she got the encouragement from her mom because her mom is always telling her that she needs to save more. “After a while I wasn't seeing any changes so I decided to cash out,” says Lourdes. But she has kept her IRA. I asked Lourdes how she feels on this whole Bush's reform, and she said,   “If we aren't going to be able to get a check, then they should stop taking money out of our paycheck and let us decide what to do with our money.”

Despite possible threats to retirement I do believe in buying a house and living a family life, only if God permits. I also believe in retiring, even if it turns into a luxury that only the wealthy can have. But I guess for now I have to save the old way, something Bush can't touch, through my savings account.