Social Security: What a Rip-off!

[Hoovie]

Would a major super bug flu outbreak, or a nuclear weapon detonation help keep SS solvent?

We just might see it!

[Rico]

Originally Posted by CC1

Rico, the plan only allowed for a SMALL portion of your SS witholding to be invested in the stock market. That was to protect from what you just stated.

Of course much like you the Dems ignored that and gave the same red herring that you did here.

Maybe the plan was for a small portion at first, but had it been successful, and people started making money through the plan, the cry would then be to open that door a little more and a little more and a little more. Then, a time like now hits, people lose billions in their retirement funds, and who would they look to to bail them out? The government. It's a bad idea, CC1. Most people don't know enough about the stock market to make a wise investment in the first place. It's plain to see the average consumer can't trust the banks to help them with these types of decisions. The banks can't even make wise investment decisions for themselves. If they could, we wouldn't be in near as big a mess as we are in now. I know there's an ebb and flow to the stock market, but allowing the social security funds to be exposed to that kind of risk is a dangerous policy.

[Rico]

Originally Posted by CC1

If by some miracle I can work for my current company the next 16 years until retirement I will at least have some help. Almost six years ago when I was hired it was the last year my company offered both a 401k they match to a point and an old fashioned defined pension plan.

Starting five years ago new hires only get the matching 401k, no pension plan.

With only about 5 1/2 years at this company if they stopped funding my pension plan tomorrow I have already accrued enough for it to pay at retirement about 25% of what those SS letters advise me my estimated SS retirement will be.

Those pension plans from way back are definitely a thing of the past.

[CC1]

Originally Posted by Rico

Maybe the plan was for a small portion at first, but had it been successful, and people started making money through the plan, the cry would then be to open that door a little more and a little more and a little more. Then, a time like now hits, people lose billions in their retirement funds, and who would they look to to bail them out? The government. It's a bad idea, CC1. Most people don't know enough about the stock market to make a wise investment in the first place. It's plain to see the average consumer can't trust the banks to help them with these types of decisions. The banks can't even make wise investment decisions for themselves. If they could, we wouldn't be in near as big a mess as we are in now. I know there's an ebb and flow to the stock market, but allowing the social security funds to be exposed to that kind of risk is a dangerous policy.

Your Democrat logic speaks for itself. The fact is saving for retirement is a longterm proposition and longterm the stock market brings an average return of around 12%.

Your money withheld into SS brings about a 2% return on what you put in.

Add the idea of compound interest to that and you can see where just investing 10% of ones witholding money into the stock market could mean a lot more money at retirement.

Your fear of the stock market and the private sector is soooooo typical Dem it is funny. Gotta rely on Big Brother cause you just don't think folks are smart enough to pick a mutual fund. Duh! Millions do just that every day with their 401k plans. You don't have to be a stock market expert, just choose a good mutual fund.

[CC1]

Originally Posted by Rico

Those pension plans from way back are definitely a thing of the past.

I know. I was shocked when I saw I had that. I fully expect them to stop funding the existing ones any day now but even if they do what I have accrued will still bring me 25% of what my estimated SS retirement will be.

[Rico]

Originally Posted by CC1

Your Democrat logic speaks for itself. The fact is saving for retirement is a longterm proposition and longterm the stock market brings an average return of around 12%.

Your money withheld into SS brings about a 2% return on what you put in.

Add the idea of compound interest to that and you can see where just investing 10% of ones witholding money into the stock market could mean a lot more money at retirement.

Your fear of the stock market and the private sector is soooooo typical Dem it is funny. Gotta rely on Big Brother cause you just don't think folks are smart enough to pick a mutual fund. Duh! Millions do just that every day with their 401k plans. You don't have to be a stock market expert, just choose a good mutual fund.

I don't have a fear of the stock market, CC1. In fact, part of the plan I put into effect this year involves saving up enough money to have some money to invest in the stock market. I took the time it takes to learn about what a wisely diversified portfolio would look like, learned about the importance of studying a company and industry before the decision is made to invest in any one company or area of the economy, and also learned the importance of staying on top of my investments.

I literally spent hours going over the choices in the 401K the company I was working for had, to make sure I was putting that 6% where it would bring back good results within my risk tolerance. I'm not working there any more, but I don't regret the time I spent learning the importance of sound retirement planning.

Right now I am in the process of rebuilding our emergency fund. That should be back where it needs to be by the end of this coming winter. Once that goal is met, we are going to establish IRA accounts for both me and my wife. Seeing as how I am now self employed, an IRA will be my main avenue for retirement funding. Once we get those account established, it's on to playing the stock market as an individual investor.


So, you see, I am not afraid of the stock market at all. It's just that I know that people aren't going to be willing to put the time it takes into making smart choices with their money, should the government open up their social security funds to them for investment. Again, I am not crazy with where the fund is headed as it is, but I don't think taking a chance with the ss trust fund is a good idea.

[Rico]

Originally Posted by CC1

I know. I was shocked when I saw I had that. I fully expect them to stop funding the existing ones any day now but even if they do what I have accrued will still bring me 25% of what my estimated SS retirement will be.

One of the industries that still offers pensions is the insurance industry. Both the carriers I went to work for as an employee offered a pension, along with a 401K, and separate investment choices.

[Praxeas]

Originally Posted by Pastor Poster

Social Security, what a rip-off!

It really bothers me that I am paying in to something I will never benefit from.

The latest estimates are that SS is at a deficit of over three TRILLION dollars.

Neither one of the presidential candidates wants to tackle real refom, so SS will go bankrupt - or we will need to keep raising taxes astronomically.

Current indications are that, for SS to stay solvent, the three tax brackets would neeed to be raised as follows.

Low income would be taxed at 25% of income.
Middle class would be taxed at 66% of income.
Wealthy would be taxed at 80% of income.

Insane!

Do the wealthy really pay their share though now?

[Rico]

Originally Posted by Praxeas

Do the wealthy really pay their share though now?

They're supposed to get a free pass because they're the ones us serfs depend on for jobs.

[Praxeas]

Don't worry guys, soon the NAU will be formed and the Amero will take over the dollar and peso and whatever they spend in Canahduh. We will have a socialist nation and things will be wunderfull