* Gary Denton ([EMAIL PROTECTED]) wrote: > About $100 billion a year would be freed up for stocks, bonds and > other investments under a tentative plan President Bush has floated > to fix the Social Security retirement system by creating private > investment accounts. > > The fees paid to brokers and money managers could run into the > billions.
They could, if the privatisation is implemented poorly, i.e., as an actively managed mutual-fund type account. But that would be stupid. You are arguing against a good idea based on a stupid implementation of it. If you want to accomplish something, it is more effective to argue FOR an intelligent implementation of a good idea: The annual fee for an index fund is about 0.1%. So, 0.1% of $100B is $100M. In actuality, it will be lower, since such a large account will be able to get economies of scale. Very large pension funds currently can get 0.05%. -- Erik Reuter http://www.erikreuter.net/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
