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Another Article On Social Security Running Out of Money
Old 07-14-2017, 01:10 PM   #1
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Another Article On Social Security Running Out of Money

My take away is. "you aint getting what you thought you were". They offer a few suggestions, those who have children and grandchildren will love it. It goes something like this "raise their taxes". https://finance.yahoo.com/news/socia...175058898.html.

Maybe instead of the money being invested in treasuries they should have taken a hint from us in this forum and invested 25 % in equities.
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Old 07-14-2017, 01:17 PM   #2
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The thread title was modified for clarity.

Edit to add - the article just quotes from the SS Trustee report and doesn't add anything to the discussion.
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Old 07-14-2017, 01:18 PM   #3
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Thanks for bursting our bubble, I thought we are( my husband at least) is getting a raise this coming year. Something around 2% and Medicare part B is not changed.
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Old 07-14-2017, 01:23 PM   #4
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With respect to the article's writer, a 75 year fix would be a great step forward, thank you. Let's not let the perfect be the enemy of the good.

[mod edit]
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Old 07-14-2017, 01:27 PM   #5
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With respect to the article's writer, a 75 year fix would be a great step forward, thank you. Let's not let the perfect be the enemy of the good.

[mod edit]
The first 2 sentences were fine. I could have lived without the last one. Ok Seems the last sentence is gone
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Old 07-14-2017, 01:28 PM   #6
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My take away is. "you aint getting what you thought you were". ....
I'm still counting it as zero in our retirement calculations, but beginning to think that we might be pleasantly surprised.
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Old 07-14-2017, 01:30 PM   #7
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I'm still counting it as zero in our retirement calculations, but beginning to think that we might be pleasantly surprised.
Yes, I agree. I think worst case in our life time might be 30 reduction.
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Old 07-14-2017, 02:30 PM   #8
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30% reduction would leave us with a lot of social income under current law. OTOH, my siblings and others in their shoes would find that to be a big and bitter pill.

I still think that, whether perceived as "fair" or or not, the disparate impact may result in a disparate remedy.

All I ask is that DW and I are both still around to see what happens!
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Old 07-14-2017, 02:32 PM   #9
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To paraphrase Charles Dudley Warner, "Everybody complains about Social Security, but nobody does anything about it."
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Old 07-14-2017, 02:44 PM   #10
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To paraphrase Charles Dudley Warner, "Everybody complains about Social Security, but nobody does anything about it."
This is a great idea for a new thread, thanks
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Old 07-14-2017, 02:58 PM   #11
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I do not think it will be cut for people near retirement age or in retirement. However, as time passes the choices become more difficult.

Would be nice if politicians would not vow "not to touch social security" and instead vow to "reform social security to make it solvent for future generations while protecting retirees and those nearing retirement".
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Old 07-14-2017, 03:07 PM   #12
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"A root cause for the financial woes for Medicare and Social Security is the aging baby boomer population,"

Not true at all. It's promising more benefits than willing to tax to pay for.
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Old 07-14-2017, 03:12 PM   #13
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With respect to the article's writer, a 75 year fix would be a great step forward, thank you. Let's not let the perfect be the enemy of the good.

[mod edit]
I doubt those working would agree with that 75 year "fix".
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Old 07-16-2017, 03:31 PM   #14
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Would be nice if politicians would not vow "not to touch social security" and instead vow to "reform social security to make it solvent for future generations while protecting retirees and those nearing retirement".
For those nice words from a politician to be practical and interesting, rather than just pleasant to hear, the politician must then continue and specify what he proposes to do about a shortfall of payroll tax income. He might propose delaying full retirement age. He might propose reducing or eliminating cost-of-living adjustments for those who have high monthly benefits. He might propose raising the cap on payroll income subject to the FICA tax. He might propose taking general tax revenue to plug the gap, or imposing payroll taxes on non-payroll income like dividends, capital gains, interest, IRA withdrawals, and rents. He might propose that the government pay the promised benefits with no reduction and no increase in taxes by just adding the necessary money to the national debt. He might propose cutting benefits for everyone by the same percentage, about 30%, or imposing cuts that are more severe according to what other income someone has or how high his social security benefit is. If this politician is a statesman and not just a vote seeker, he will also discuss both the advantages and the disadvantages of his proposed solution, rather than pretending that only good things would result from adopting his ideas. If he says "This solution method benefits everyone", know that he is a charlatan. If it isn't too wonkish, he might even comment on what's good and what's bad about proposals that rival his, and how he decided that his version is the best possible. Finally, he might talk about what proposals have some chance of passing Congress, considering that geezers like me vote, and turning out to be effective. . ... I just talked myself into the hunch that Congress will do nothing about the problem and just add debt when the time comes to cover for the government's income from FICA taxes payroll income being too small. When the trust fund is gone, I'll be 95. I should live so long.
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Old 07-16-2017, 04:29 PM   #15
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Would be nice if politicians would not vow "not to touch social security" and instead vow to "reform social security to make it solvent for future generations while protecting retirees and those nearing retirement".
If reform means younger folks paying more to get less, they might not think it's so "nice." The burden really needs to be shared. Asking a working stiff trying to support a family to pay higher FICA taxes so a well-heeled geezer can use his SS to make yacht payments is only going to be popular with well-heeled geezers........

Means testing has to be part of the answer. Maybe something similar to how they means test Medicare with IRMAA.

Another part of the answer might be separating the retirement part of SS from the charitable and disability part. We've added several new categories of benefits to SS since Roosevelt's original concept.
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Old 07-16-2017, 04:38 PM   #16
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I'm still counting it as zero in our retirement calculations, but beginning to think that we might be pleasantly surprised.
I hope zero from SSA isn't triggering any retirement decisions, because based on your handle and tag line, you are def getting something. I am counting on it being close to intact in 10 years (for one of my age).
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Old 07-16-2017, 04:41 PM   #17
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If reform means younger folks paying more to get less, they might not think it's so "nice." The burden really needs to be shared. Asking a working stiff trying to support a family to pay higher FICA taxes so a well-heeled geezer can use his SS to make yacht payments is only going to be popular with well-heeled geezers........

Means testing has to be part of the answer. Maybe something similar to how they means test Medicare with IRMAA.

Another part of the answer might be separating the retirement part of SS from the charitable and disability part. We've added several new categories of benefits to SS since Roosevelt's original concept.
Seems no one asked me in 1983 what I thought of raising the retirement age. I had started my career just then. I would have voted a big fat no. I dont even know the history of how it got extended.
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Old 07-16-2017, 04:50 PM   #18
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Seems no one asked me in 1983 what I thought of raising the retirement age. I had started my career just then. I would have voted a big fat no. I dont even know the history of how it got extended.
Yep, they definitely need to means test your SS.......
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Old 07-16-2017, 05:41 PM   #19
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Yep, they definitely need to means test your SS.......
I know, Im going to be the poster child for the beat down. I feel it coming.
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Old 07-16-2017, 05:41 PM   #20
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Gentlemen: Social Security is ALREADY means tested in two ways. First, in computing a monthly retirement benefit, it replaces a larger fraction of a worker's income when that income is smaller. Then, then the recipient (including rich geezers like me) pays income taxes on the social security benefit and a surtax for Obamacare. We couldn't deduct our FICA payments at the time, but when the money comes back to us, we have to pay income taxes on it -- double penalty. When you advocate means testing, it would be helpful if you include recognition of the amount of means testing already in the program. Further, please consider a life, fire, or casualty insurance policy you might buy. If, when it comes time to pay off, the insurance company declines to pay, or pays only part of the insured amount, because the insurance company feels you don't need the payoff. The caterwauling about immoral corporations would then be deafening, but you may be OK with the federal government stiffing us. If need is the basis of Social Security payouts, then the program becomes welfare, rather than a universal program, and its public support would decline. (Wouldn't it?) Of course, it would be burdensome on young struggling families to pay higher social security tax. Old guys like me are already helping those families through property taxes that go largely or mostly for schools for the children of those young families. At this point, I am not advocating any particular policy. I'm just commenting on pros and cons of your naked, unsupported statement "Yep, they definitely need to means test your SS." To that extent, I am behaving like the statesman of my dreams, one who admits both the costs and benefits of his proposals, and faces political realities too. Note to that person: Geezers VOTE.
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