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.