It's time to move Social Security and Medicare into the private sector so that our retirement doesn't go down the drain!

Looking at possible deficits in Social Security and Medicare, and the eventual virtual bankruptcy of both of these programs, means that we must reconsider all that we have assumed. (As Abraham Lincoln said of another national crisis, "... we must think anew, and act anew. We must disenthrall ourselves...".) The American government, especially the Congress, really has not shown great responsibility as stewards of the trust funds.

In order for us to take greater control of our money, we need to raise the limits on individual retirement investments, such as IRAs, and we need to encourage use of health savings accounts. Individuals and businesses would contribute to these accounts instead of paying taxes directly to the government. Social Security and Medicare would be phased out, and their funds would be returned to taxpayers over a period of a few years.

Further research is needed before deciding whether an additional fund should be established to support the destitute, especially those that have spent a lifetime in the work force. If established, these funds should be placed in a non-governmental account where it will not be tampered with for other causes.

To make this work, we would need a strategy involving stopgap measures, which might be very difficult to put in place. Such a strategy would involve transference of trust funds to private banks via direct deposit to recipients. The difficulty arises due to the U.S. government's not being in possession of said funds, which would be lent to us from such funds order to cover the costs of other programs. Thus, a stopgap phase would mean locating funding entities that we would repay. However, it is best to deal with the problem sooner rather than later. By using a long-term strategy, regardless of our track record for dealing with such problems in the past, we can begin to correct our course.

So what does this mean for you? Independent of the outcome of the entitlement debate, you don't want to be a victim of poor planning and diminished political will. You have to be in control of your own retirement and use your own long term plan, instead of the government's short term fix. I, myself, have always planned for my retirement as if there would be no Social Security available to me. I have done everything in my power to put the maximum allowable amount into my IRA, employment 401(k) plans and other tax-advantage savings vehicles. The earlier you start doing this; the better off you will be in the long run. If you are eligible for the Roth IRA, then become a part of this program. Again, letting go of the short term gain of present tax reduction means reaping long term benefits. A caveat: no two people's financial situation is identical. So, do your research before you make a final decision. Your tax consequences might vary from mine.

Regardless of your decision, remember that Social Security has never been, and probably will never be, the ultimate retirement solutions. PREPARE YOURSELF!

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