2. The money that is collected is put in a trust fund that provides a monthly income for retiredworkers. 3. These benefits are also partially available to the spouse of the deceased beneficiary, and itprovides benefits for disabled workers. B. According to the article from The Heritage Foundation "Issues 98: The Candidate's Briefing Book",there are several problems to the current Social Security system. 1. Social Security gives a poor rate of return. The rate of return varies from person to person. For instance,for the best case scenario, a married couple with two children and a single earner receives only 4.74 percentif the earner was born in 1932. However, most of uswere not born in 1932 so that percentage decreases toless than 2.6 percent for those born in 1976. Single men do the worst when they only have a rate of return of less than half a percent. 2. People are becoming more dependent on Social Security. Today, Social Security benefits are the primary sourceof income for almost two thirds of all retirees. 3. People don't know their rate of return on their SocialSecurity taxes. A worker has no clear understandingof the yield on his or her investment in the Social Security program. 4. The trust fund is running out of money. By 2012, the Social Security trust funds are expected to start payingout more in benefits than it collects from taxes. Why? Because people are living longer, more people are retiringearly, and women of today are having less children.Which means that there will be less people in the workforceto pay for the increasing number of retirees. (Transition: So now we know that it is not wise to depend just on Social Security when we retire. There are, however, other things you can do to better prepare yourself for retirement. I will focus on investing your money in private investments-particularly IRAs and Stocks) II. Satisfaction Step A. The IRA 1. Only 6 people of the 19 surveyed knew what an IRA was. 2. IRA st...
