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Another Article On Social Security Running Out of Money
07-14-2017, 01:10 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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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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Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
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07-14-2017, 01:17 PM
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#2
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,704
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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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07-14-2017, 01:18 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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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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07-14-2017, 01:23 PM
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#4
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Recycles dryer sheets
Join Date: May 2012
Location: Brewster
Posts: 367
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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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07-14-2017, 01:27 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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Quote:
Originally Posted by Nightcap
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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The first 2 sentences were fine. I could have lived without the last one. Ok Seems the last sentence is gone
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
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07-14-2017, 01:28 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,506
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Quote:
Originally Posted by Blue Collar Guy
My take away is. "you aint getting what you thought you were". ....
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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.
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OMY * 3 2ish Done 7.28.17
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07-14-2017, 01:30 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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Yes, I agree. I think worst case in our life time might be 30 reduction.
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
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07-14-2017, 02:30 PM
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#8
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,506
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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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OMY * 3 2ish Done 7.28.17
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07-14-2017, 02:32 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,899
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To paraphrase Charles Dudley Warner, "Everybody complains about Social Security, but nobody does anything about it."
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07-14-2017, 02:44 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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Quote:
Originally Posted by GrayHare
To paraphrase Charles Dudley Warner, "Everybody complains about Social Security, but nobody does anything about it."
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This is a great idea for a new thread, thanks
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Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
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07-14-2017, 02:58 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,584
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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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07-14-2017, 03:07 PM
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#12
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gone traveling
Join Date: Apr 2011
Posts: 3,375
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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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07-14-2017, 03:12 PM
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#13
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gone traveling
Join Date: Apr 2011
Posts: 3,375
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Quote:
Originally Posted by Nightcap
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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I doubt those working would agree with that 75 year "fix".
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07-16-2017, 03:31 PM
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#14
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Recycles dryer sheets
Join Date: Nov 2010
Location: Henderson
Posts: 87
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Quote:
Originally Posted by Montecfo
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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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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07-16-2017, 04:29 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,183
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Quote:
Originally Posted by Montecfo
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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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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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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07-16-2017, 04:38 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Location: Back woods of Fennario
Posts: 1,170
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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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"Time wounds all heels...." - Groucho Marx
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07-16-2017, 04:41 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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Quote:
Originally Posted by youbet
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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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.
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
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07-16-2017, 04:50 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,183
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Quote:
Originally Posted by Blue Collar Guy
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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Yep, they definitely need to means test your SS.......
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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07-16-2017, 05:41 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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I know, Im going to be the poster child for the beat down. I feel it coming.
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
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07-16-2017, 05:41 PM
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#20
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Recycles dryer sheets
Join Date: Nov 2010
Location: Henderson
Posts: 87
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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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