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07-11-2009, 01:50 PM
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#21
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Thinks s/he gets paid by the post
Join Date: Feb 2003
Posts: 2,395
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DblDoc's quote above made me dig through my SSA paper file, as I remember and had programmed 73%, not 78%, into my spreadsheets.
Interestingly, I found that the percentage had been changing over time, actually increasing. I didn't know that.
All data is from SSA "Your SS Statement" dated in the summer of each year listed:
2001 - 73%
2002 - 73%
2003 - 73%
2004 - 73%
2005 - Don't have it
2006 - 74%
2007 - 75%
2008 - 78%
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-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
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07-11-2009, 01:53 PM
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#22
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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Telly, the 2005 number was 74%, the same as 2006. And the number for 2000 - 72%.
__________________
Numbers is hard
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07-11-2009, 01:56 PM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Posts: 5,350
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Quote:
Originally Posted by Want2retire
If my age was under 50, I would assume that I am not going to get SS. I think that is an absolute crime and a terrible injustice, but there it is.
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I think there is a zero % chance that social security will be eliminated completly without being replaced by something similar so planning on getting nothing makes no sense to me. There's no way the government is going to let millions of elderly people with no savings live on the streets. There will always be social security in some form for those who need it. I could see them eliminating it for those with a certain net worth or for people with pensions that pay more than social security but not for those who need it.
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07-11-2009, 03:27 PM
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#24
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Thinks s/he gets paid by the post
Join Date: Aug 2007
Posts: 1,224
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Quote:
Originally Posted by Texas Proud
I have not read the article.... but I do remember reading that the worst case was not really 'that bad'... and a small fix here are there would make it where it would recover even paying out close to 100%...
Didn't I read somewhere where someone thought this recession would make it solvent since there are so many people now that will NOT be able to retire early and start their SS
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That is the gist of the AARP article. There a few things they don't like but they point out a little bit of this and a little bit of that could fix the solvency problem without creating to much focused pain.
DD
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07-11-2009, 04:45 PM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
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I am 40 and right now assume I will receive 25% of my future benefits. I assume a SS COLA of 3%, which is approximately what the actual SS COLAs have averaged over the past 10 or 20 years, and then I discount that future income stream to an NPV which I use in my FIRE net worth.
I feel much like Katsmeow and bbbamI about it. It's a significant factor in my FIRE-ability but I don't like relying on it. I do have it as a variable in my spreadsheet and can adjust it as I see fit. What I think will happen is that I will "achieve FI" with that SS assumption in the next year or two, then I'll continue working so I don't have to rely on SS for FI.
One error I have is that I am basing things on the SS PEBES, which assumes I'll keep working until retirement age, which isn't true. I know I can get a estimate with an earlier retirement age; I just haven't done that yet.
I think if we review the history of SS since inception we can make a pretty good guess as to what will happen: the FICA taxes will be increased somehow (eliminating the SS MTA would be my guess), the retirement age will continue to be increased somehow (indexed to longevity would be my hope, but I doubt it), and SS/Medicare benefits will be taxed more.
One surprising prediction I would make based on history is that the program will be further expanded somehow -- perhaps they will add benefits for illegal immigrants or something. This is logically counterintuitive but I think it is part of the political process of making the other changes more palatable to the electorate.
2Cor521
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"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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07-11-2009, 05:23 PM
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#26
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,242
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Quote:
Originally Posted by ziggy29
On the other hand, if there are fewer jobs, there are fewer people paying SS taxes. Plus, I don't think the models planned for zero or even negative wage growth for a while.
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IIRC, it took that into account... the hit on peoples savings was huge... so a long time to recover... the unemployment will be a lot shorter term....
Now, my boss thinks we are about to have a lost decade like Japan (who actually have had 2).... if that happens... then we are in for a lot more troubles...
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07-11-2009, 06:26 PM
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#27
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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Age 50 yrs 10 mos here. I know I was born at the tail end of the baby boom, and never used SS as a factor in my FIRE.
I have nothing in writing guaranteeing a SS benefit. Only a statement that arrives every year, starting with the words
" If you continue...".
"If" means If.
I'd rather see someone who w*rked hard all their life, not sitting on their keister whining, and needs it more than I do,
have a full benefit.
I really mean that. I do not need SS because of my survivor benefits and my own deferred pension coming at age 56.
If I get a benefit, I will use it. If I don't, well...
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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07-13-2009, 07:22 PM
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#28
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Thinks s/he gets paid by the post
Join Date: Feb 2003
Posts: 2,395
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Quote:
Originally Posted by REWahoo
Telly, the 2005 number was 74%, the same as 2006. And the number for 2000 - 72%.
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Thanks for the fill-in, REW.
So the worst-case payout percentage has improved from a predicted 72% up to a predicted 78%. Wonder what this summer's will show, if it will show a decline or not.
I figure my mailman might have filched my 2005 statement, probably sold it to someone, right before he transferred down to your serving post office to try a new route method there Well, he really could have, ya know.
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
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07-14-2009, 09:56 AM
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#29
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by TromboneAl
Agreed. The last time SS reform was proposed, I recall the government saying "If you are older than X, then you won't be affected." IIRC X was 55, right?
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The age was 50, not 55........as I recall.........
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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07-14-2009, 09:59 AM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Posts: 12,880
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Imagine if privatization of SS had taken place when it was last proposed.
__________________
Al
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07-14-2009, 10:00 AM
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#31
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,296
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Well, I guess there is one good thing about being 51...
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There's no need to complicate, our time is short..
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07-14-2009, 11:16 AM
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#32
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by TromboneAl
Imagine if privatization of SS had taken place when it was last proposed.
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I think the recent market swoon has killed that idea for a while. The last thing a lot of people want to do now is trade the last bit of pension-like retirement certainty in their arsenal for more 401K...
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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07-14-2009, 12:21 PM
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#33
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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Quote:
Originally Posted by TromboneAl
Imagine if privatization of SS had taken place when it was last proposed.
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Actually I trust the equity markets more than I trust Uncle Sam........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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