Social Security Expected to Dip Into Its Reserves This Year

I would not rule out our Government seizing retirement accounts and other assets in a declared state of "emergency."

 

The Wealth Shift Legislation and resulting Massive Government borrowing ( up 86 % over Last year )

really shows the inept Republican policies !

 

As time passes people forget why SS was created and think it could never happen to them.
It could.
It almost did.

 

Standard financial planning procedure is to use your life expectancy.

 

That would mean a total collapse of the US economy and therefore the US as a whole. China would be giving the orders. Government will do anything to avoid that. But I do believe a collapse is on the horizon.

 

If he was due to retire in 08 why was he still in stocks?

 

ROFL says the man who just told me

Why don't you do your own?

 

He was gonna retire in may of 09, and could not touch his investment through his work until he hit the retirement age. He saw a significant loss but not sure how much as he was too mad to say. But it spoiled his laid out plans for retirement.

 

I can suggest three fixes, double the Social Security Deductions from paychecks and on the employers side, raise the minimum age to retire to 67 and the regular retirement age to 72 and the last since Medicare is also at risk and sooner we need to shore that up with strong cost cutting measures such as let the Medicare agency as a big block negotiate prices and bulk buy drugs and other medical things applying the savings to the system.

 

SS is easy to fix. Less than a 3% increase in the tax would do it. As suggested earlier eliminating the cap on withholding would take care of most of it and adding a modest increase would take care of the rest.
Medicare is more complicated. In my opinion we should fix it when we switch to Medicare for all because we will have plenty of money to work with then.

 

ummmmm... yes, it does. ss has a terrible impact on Americans ability to grow wealth. the gov takes 12.4% of your lifetime earnings and returns a fixed income around the poverty rate. additionally, you can't will this money to anyone meaning your claim to ownership stops at your death. taking the avg market return, I'd have around 480k from my ss contributions with over 20 years to retirement.

of course, if you wanted to keep a large percentage of the population from getting any foothold as far as net worth, ss is an amazing program.

 

You are right. There will be more hunger and homelessness among the elderly.

 

no offense, but if your brother was close to retirement, he should have adjusted his investments to involve hedges against risks.

also, did your brother completely liquidate? if he were only drawing against principle for living costs, the bulk of his investment would have returned over the next 5 years.

 

yeah, my wife called me paranoid when I convinced her to only contribute 5% to untaxed retirement savings. I fear they will roll 401ks into ss.

 

this is just great. let's pay 24% of our income to the gov that they'll give us a shitty annuity after 67. this is just insane.

 

all we have to do is just pay in more money and receive less. wow, what a deal.

 

LOL!!!!!!!!! Impossible, but you wouldn't know that, obviously.

 

Ronv, before some rightie jumps on you, a 3% increase to a 6.2% tax would mean raising it to 6.39%. I think you mean increase it by "three points" to 9.2%.

 

Sure he could, 401k's have low risk funds or they can be put into cash. Plus he could have let it stay in the market and recoup which at the bottom of the market would not have been a bad plan, dollar cost averaging getting back in until the market gets back to where it was. Market bottoms are buying opportunities. And young people have plenty of time to go through cycles. Again a steady investment averages your cost and compounding gains increases your growth and through any 10 year period you make money.

 

Calling the employer contribution "our income" is what's insane when you've never seen that money in your paycheck and never will even if the FICA deduction is ended.

 

You realize that money you take from people is money they will not have to spend in the economy, it won't just come out of thin air, it means less spending and investing. It is already a 15% combined, how much more are you talking about?

 

No it's not it's additional income they come be giving to you instead. It's doesn't matter to them how your cost of employment is divided up it's the total cost they are concerned with. If they aren't giving to the government then they can offer it to you as they bid for labor.

 

Sorry.. You will be okay. Honest.

 

No I didn't. You need to stop just skimming first sentences and READ posts before forming your reply.

 

Yes, Thanks.