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Thread: Social Security

  1. #1

    Default Social Security

    Panel recommends changes to SS to save 3.8 Trillion $'s

    http://www.usatoday.com/news/washing...terstitialskip

    Seems ok to me. I'd like to know how much it will reduce SS income though.
    Just a lil o'l fishegg floatin around in this big ocean!


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  3. #2

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    Default Re: Social Security

    Oh my word! I thought I read the details earlier today, but there's details that weren't mentioned in the other article I read. this one is a killer for ordinary middleclass and working class people, even if implemented 2 years from now, maybe even especially. Certainly if jobs AND wages haven't come back up higher, which I don't see how they will that quickly.

    •A cut in the corporate tax rate from 35% to 26%. The alternative minimum tax, used to ensure that upper-income taxpayers don't avoid taxes, would be eliminated. To help make up for lost revenue, the federal gas tax, now 18.4 cents a gallon, would be increased by 15 cents.
    http://www.usatoday.com/news/washing...terstitialskip

    that alone will help drive housing prices even lower in the suburbs and bedroom commuter communities, if the housing prices haven't dropped low enough before that.

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  5. #3

    Default Re: Social Security

    Deficit targets: Social Security, mortgage breaks

    The plan would gradually increase the retirement age for full Social Security benefits — to 69 by 2075 — and current recipients would receive smaller-than-anticipated annual increases. Equally controversial, it would eliminate the current tax deduction that homeowners receive for the interest they pay on their mortgages.
    That's a good way to kill and then bury the housing industry, and all associated businesses....It'll never happen though..this is a political chess move to leverage a less objectionable measure they're cooking up...Freaking screw-ups!!!

    http://news.yahoo.com/s/ap/20101111/...tting_deficits
    A wise man speaks when he has something to say...A FOOL speaks when he just has to say something

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  7. #4

    Default Re: Social Security

    If SS had not been improperly managed we would not be discussing this. On the news this morning, Boomers are now turning 65 and will be a heavy crunch on SS and Medicare it said. Heck, it was the boomers who financed SS for the most part and now when they are reaching retirement, now it is their fault.........what the heck!

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  9. #5

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    Default Re: Social Security

    Along with the money swiping, Social Security was based on a shorter lifetime than we have now, so it is now more than the calculations. That does not mean I think its fair to tag the Boomers for living longer when they are already retired or about ready to.

    Not sure what's going to happen with us Busters, either, some with over 15 years working, and 10-20 out to our current "benefits age". That gives more time for planning, so I get this feeling it's more likely we and the Gen Y's and later are the ones who are going to get punked.

    Home interest tax deduction? Just get rid of it for second houses; most people don't speculate on their only residence.
    "All the prophets of Doom, Can always find room, In a world full of worry and fear..." - Protest Song, Monty Python

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  11. #6

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    Default Re: Social Security

    TSP participants understand how money can grow over time. It’s really amazing how fast our accounts grow if you just stick with maxing it out year after year. Can you imagine how much money you would have if you were forced to save 15% of your gross over 45 years vice giving it to SSA??!!??. My SSA statement goes back to 1972 when I started my first official job, pumping gas and earning about 1 dollar per hour at age 15… LOL… Don’t laugh, I was able to pay off my first new motorcycle with that job in less than one year… Anyway, I personally don’t expect to see one penny from the SSA when I reach my retirement age of 66. All of my retirement planning doesn’t factor SSA in at all…

    I think it would be a lot cheaper for the government to just pay every newborn $2000.00 into an account tied to the TSP C Fund and let it ride until that person reaches their new retirement age of 70 or whatever… LOL… According to my calculations, 2000.00 earning on average of 10% over 70 years = a little over 2 Million.. But, I think it would wake people up once they begin to understand the importance of saving money consistently over a long period of time will give them financial freedom. Saving money vice spending it on SSA would get my vote hands down. Anyway, I just think it would be a lot smarter than dumping more tax dollars into SSA / Medicare... It’s pretty much hand to mouth right now!! LOL
    Maintain a positive attitude, focus on what you want and show gratitude for what you have…

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  13. #7

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    Default Re: Social Security

    Do people who spend their productive years enjoying the benefits of welfare also get social security.

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  15. #8

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    Default Re: Social Security

    The changes to Social Security in the proposal, from what I understand, only affect the people currently in the big "67 Retirement age bracket. There will be more brackets with more years added (There is at least a new 68, may go to a 70 full retirement bracket if I remember properly).
    "All the prophets of Doom, Can always find room, In a world full of worry and fear..." - Protest Song, Monty Python

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  17. #9

    Default Re: Social Security

    What is SS payroll withholdings right now?..7%?..Why not make it 8% or 9%...That would be easier on everybody.
    A wise man speaks when he has something to say...A FOOL speaks when he just has to say something


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  19. #10

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    Default Re: Social Security

    Why not put those percentages in a private savings or investment plan - I guarantee you'd have more money tucked away come retirement age.

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  21. #11

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    Default Re: Social Security

    Quote Originally Posted by Aviator_Guy View Post
    I think it would be a lot cheaper for the government to just pay every newborn $2000.00 into an account tied to the TSP C Fund and let it ride until that person reaches their new retirement age of 70 or whatever… LOL… According to my calculations, 2000.00 earning on average of 10% over 70 years = a little over 2 Million..

    $2K, put into an account, and earning 10% per year for 70 years, would grow to $1,435,904.

    2000 2200
    2420
    2662
    2928.2
    3221.02
    3543.122
    3897.43
    44287.178
    4715.89
    55187.485
    5706.2336276.8576904.5427594.9978354.4969189.94610108.9411119.8312231.821345514800.51
    6280.5517908.619699.4721669.4123836.3526219.9928841.9931726.1934898.838
    388.6842227.5546450.3151095.3456204.8761825.3668007.974808.6982289.5690518.5199570.36
    109527.4120480.1132528.2132528.2145781160359.1176395194034.5213437.9234781.7258259.9284085.9
    312494.5343743.9378118.3415930.1457523.1503275.4553603608963.3669859.6736845.6810530.1891583.1980741.51078816 1
    186697 1305367 1435904
    Shows the power of compound interest. :-)


    Not bad, but still -70 years from now, what will $1.435 million buy? Certainly not a lifetime of happy retirement. Shucks- it probably wouldn't even buy you five years in a retirement home by then....


    And how exactly would you get 10% per year?

    I know, I know- the TSP TALK Sentiment Survey method, right?


    But I hear your point.

    Perhaps some tweaking of the tax code- and give new parents a $2,000 credit per year to put money away for their children's retirement.

    (Not like it isn't hard enough already to tuck money away for my own retirement, plus the kid's college! )

  22.  
  23. #12

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    Default Re: Social Security

    C fund? If I'm going to ride a tiger, I prefer S fund - but most people don't know what to do on the back of a tiger.

    Plus, although I understand why Bureaucrats invest their retirement money in a general Stock fund (no possibility of taking advantage of knowledge through job function or inside information stock purchasing), in the grander scheme of investing in a company, it should reflect the company, rather than just investing in the whole market as if the business model of the companies you are investing in do not matter as long as they are in the stock fund. Stock prices in the end are supposed to reflect how well the company is doing - we are moving further and further away from that and it really worries me. People now think that the key to business is stock price, not how well your product or service sells, and that should be nonsene.
    "All the prophets of Doom, Can always find room, In a world full of worry and fear..." - Protest Song, Monty Python

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