I really disagree with Jack Marrion’s column (“Debunking the impending Social Security ?crisis,’” Aug. 2007 SMA) and suggest the Social Security crisis is right around the corner.

Imagine YOU borrow money from MY IRA and I know it will be paid because you have a guaranteed stream of income.

Am I worried? No. The debt is guaranteed to be paid from your future guaranteed income so my retirement is secure.

Now suppose I “borrow” from MY OWN IRA. Can I now dip into that note in my IRA and magically bring out income? NO. First I must pay off the debt, then I can use the proceeds to fund my retirement.

Maybe that isn’t the best analogy, but the Social Security “trust fund” is funded with treasury securities, and the only way the government can pay off treasury securities is from revenue – i.e. TAXES.

The Social Security crisis begins the year when the money coming into Social Security is less than the money going out. At that time the government MUST raise taxes to pay the difference. And that time will be here within the next 10 years, not 30 or 40 years from now.

Raymond Kidalowski

More on compliance woes

Editor’s note: The following letter was received in response to the “Up Front” column in the July issue, “A few good compliance officers.” More letters on the subject appear in the September issue of SMA.

Compliance is imposed when self discipline fails like the police arriving at a frat party that got out of hand. Forms and procedures increase with