Social security insolvency 2033

[Fork King]

We I am about 11 years from retirement. I know it seems kinda far away. I would like to know what is your plan if / when they cut down the payments by 17%.

Retirees will only receive 83% of their full benefits.

I know some solely depend on SS and others have multiple retirement incomes which probably will not affect you as much. But still a 17% pay cut is huge.

 

[bullfrog !]

It depends on who you are, your financial situation, your physical health and skills. I continued to work well past 71 years old, practice living simply and used the savings to be reasonably secure even on my small benefit. If the majority of people are willing to vote in political leaders that want to take it away or “make it better” by privatizing it they will have to live with the consequences I’ll probably be gone or not be mentally able to care according to most people wanting to change it by that age!

 

[rruff]

We I am about 11 years from retirement. I know it seems kinda far away. I would like to know what is your plan if / when they cut down the payments by 17%.

Been hearing this story forever... kinda think it's BS... but if not... no plan necessary. I'll keep living below my means and then someday I'll die...

 

[INTJohn]

For those who rely on some authority like “the government” to “take care of me”………

You get what you deserve.
As I See It
INTJohn

 

[Fork King]

For those who rely on some authority like “the government” to “take care of me”………

You get what you deserve.
As I See It
INTJohn

I see your point. However, since I put into it and the purpose was for additional income when I retire it would be nice to get something out of it.

 

[INTJohn]

I see your point. However, since I put into it and the purpose was for additional income when I retire it would be nice to get something out of it.

Do you really believe “you put into it”? To me the gov is taking it from workers for their “future benefit”……..

I dont have a problem with it, tho, because most people cant take care of themselves - they are lifelong babies; children at best.

I also never got sucked into the 401 80’s scam either.

jonny boi takin care of hisself.

 

[bullfrog !]

If you want to “get Social Security” even though you don’t need it it doesn’t matter but if you are depending on getting it then you need to find better ways to financially get by as you age. I care about those people it was originally designed for and don’t have the skills or physical ability to survive in their old age after working low paying jobs all their lives like small farmers and small businesses. Corporations have done away with pensions and no longer use as much of their profits for employees it seems causing more poorly educated low payed people to need Social Security in order to retire. Large corporations should be made to take care of this problem thru taxation in my opinion something difficult to do as long as corporations own the government.

 

[INTJohn]

I think the idea of SS becoming insolvent is propagated purposely to motivate people while younger to think about their financial future. It worked on me.

Like rruff points out it’s been going on for a long time. I heard it in the 70’s & 80’s. In my case it worked as I started my personal investment portfolio while in the military after I returned to the states from overseas the last time in 1978.

I had saved a nice chunk of change; used 6800$ of it to buy a van; invested 10,000$ and kept the rest in a savings acct.

Over the years invested about 250$ or so a month for idk; about 25 years……
Anyway, 2day it’s a nice bundle and given my current lifestyle I’ll never live long enuff to spend it.
My monthly ss deposit basically covers my food, gas & gin bill. And I drink good gin

jonny boi livin the dream.

 

[Fork King]

Since the 50's the S&P 500 has had over a 10% return.

@ the current rate of 6.7% SS tax rate. If invested for 40 years in a Roth IRA and just put it all in the S&P 500 you would have a few million dollars.

The government is great at spending but no clue how to have a balanced budget.

If they instead got rid of SS and have everyone place it in a Roth IRA people would retire happy.

 

[rruff]

If you want to “get Social Security” even though you don’t need it it doesn’t matter but if you are depending on getting it then you need to find better ways to financially get by as you age.

If worst comes to worst... the best thing you can do is move to a state that has good social benefits!

Gotta buddy in OR and he seems to have it made... even though he's had stage 4 cancer for over a year! He's getting about $1k/mo in SS just from barely working long enough at a "real" job to get it, plus $300/mo food subsidies, and fantastic no hassle healthcare for free. They are giving him some drug that costs $10k/mo... no joke... and it seems to be working wonders.

He lives in a trailer behind his son's house (who he pays $350/mo), and he has ~$100k in poker winnings buried in the yard that he will leave to his son. He's constantly adding to his bank account. I'm planning to meet him in UT in August for some vagabonding. He travels in an ancient Rav; could afford better but he's reluctant to part with the money. Frugality definitely helps, and I know for damn sure I could live on the amount he spends and have plenty of fun! Just not seeing any point in worrying...

 

[rruff]

Since the 50's the S&P 500 has had over a 10% return.... If invested for 40 years in a Roth IRA and just put it all in the S&P 500 you would have a few million dollars.

Inflation... you gotta use present and future values of that in today's US$.

And the future will not necessarily be like the past... especially if you are old and don't have 80 years for it to all average out! Safe investments are lucky to match inflation. In which case that 6.7% (every year) would be worth 2.68 years of your salary after 40 years... yes, that's all of it.

The stock market and credit default swaps are great schemes for the oligarchs to create US$ and stick them in their pockets, but that only works because they are taking it out of ours.

 

[INTJohn]

Damn 70yearz old b4 I find out I’m an oligarch; at least a backwoods, beach bum van livin vagabon one anyway

I never got sucked into any of that 401k Roth IRA stuff. Made my own investments and managed all of it myself; yes stock market all the way and yes, having a couple drinks & discussions with University of Michigan Ross Business Skool grad contacts & accountants didn’t hurt.

Always been taking care of myself…….
jonny boi livin the dream

 

[rruff]

Damn 70yearz old b4 I find out I’m an oligarch; at least a backwoods, beach bum van livin vagabon one anyway

If you aren't stupid, then you should take advantage of the same schemes they use as much as you can. The problem is that we lose more out of our salaries than we gain in "investment" income. It's how the game is rigged.

 

[INTJohn]

Some of the geatest philosophers ever are Asian and one of them is Lao-Tzu:
“The rich man is he who knows when he has enough.”

jonny boi livin the dream

 

[Tony's Dream]

I actually do believe that the government will take of me. What that care will look like is always changing as the politicians change. I have worked for the federal government for over 40 years, having served in the Army and USPS. I have managed my retirement funds over years and I have a nice little nest egg. We have 7 streams of retirement income, not counting any retirement funds (thrift savings, 401k, and such). This allows our retirement funds to grow without having to withdraw them yet. My wife and I both choose to draw SS at 62. Its harder to do away with SS when you are in fact drawing it already. I know you get more if you wait, but the government is banking on you waiting and then dying early. When you die....any future SS funds die with you. They can't be inhereted by your family. Yes there is spousal benefit, but the spouse forfiets their SS. So I say take what you can, when you can.

 

[Fork King]

I get that. I wish I could withdraw @ 62. But full retirement age for me is 67. However, then your limited how much you can make per year. You can only make $22,320/year ($1,860/month). That is ridiculously low.

 

[Morgana]

I was real worried about making "too much" money once I went on Social Security (and kicking myself into the penalty tax bracket).
So far it hasn't been a problem lol. I suppose if I did more marketing ... but then I'd have to work more

 

[Fork King]

I was real worried about making "too much" money once I went on Social Security (and kicking myself into the penalty tax bracket).
So far it hasn't been a problem lol. I suppose if I did more marketing ... but then I'd have to work more

I worry to much. I feel if I stop working so much my health will decline lol.

My pop'aroni (God rest his soul) always said make hay while you can.

 

[bullfrog !]

Taking it early at 62 enabled me to take 6 months a year off to deal with some matters back home. My wife has waited to retire and get full benefits as she is 6 years younger than me and wanted more security as I will most likely pass before her. General rule for us was don’t take it till you need it.

 

[maki2]

I see your point. However, since I put into it and the purpose was for additional income when I retire it would be nice to get something out of it.

We tend to play a lot of mind games to protect ourselves when it comes to these things such as thinking paying into
Social Security is somehow an optional retirement fund choice we make. It is not.