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Old 05-20-2011, 08:10 PM   #41
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Now, another possibility is that eventually there will be some sort of "means testing" for social security and/or medicare, and those with assets will be expected to receive less from the government, but getting legislation like that passed will create such a political firestorm that I see it as only a remote possibility.

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Well, as I understand it (forget the details), but taxes on SS went up at some point, right? So that was a somewhat back door adjustment.

If the people being taxed are in the minority (as it appears those who planned for a comfortable retirement are), then those in office may not care what the minority sees as 'fair'. Tax the minority to gain the votes of the majority. Political firestorm in name only.

Not a prediction, I'm just sayin'.

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Old 05-20-2011, 08:13 PM   #42
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Never underestimate the avarice of your elected official. Why do you think 50% of the population don't pay taxes? The government can raise user fees, cut the tax brakes corporations get i.e. the corporation will pay more taxes and collect those from you and me, raise user fees, reduce deduction i.e close loop holes, means test, extend age requirements, reduce benefits, and so on. The goal of the average professional politician is to play to the rich enough to get money for campaign while buying sufficient votes from the poor to get re-elected.
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Old 05-20-2011, 08:40 PM   #43
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Why? How? Honestly, I'm not being confrontational, but I don't understand why other boomers' poor planning will affect me or cause me any "rude awakenings." Perhaps you're seeing something I'm not.
Boomers not retiring = more young people unable to find a decent job = more lousy economy, higher expenditures in unemployment benefits and other social programs = more young adults living with Mom and/or Dad well into their mid-20s and beyond.

There are plenty of ways it affects many of us even if we are prepared to retire at a decent age ourselves. None of us are in a vacuum.
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Old 05-20-2011, 08:52 PM   #44
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Boomers not retiring = more young people unable to find a decent job = more lousy economy, higher expenditures in unemployment benefits and other social programs = more young adults living with Mom and/or Dad well into their mid-20s and beyond.

There are plenty of ways it affects many of us even if we are prepared to retire at a decent age ourselves. None of us are in a vacuum.
Add to that - A college education is increasingly important to enter the job market, and education costs have outpaced inflation. So this puts a real stretch on the younger generation, compared to previous generations. Invest all that money/time on an education, and then graduate into a tough, tough job market. Not a pretty picture. A friend of my sons graduated with a degree in Construction Management in 2004 - oops, bad timing. He's having a tough time. I feel for these kids.

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Old 05-20-2011, 09:06 PM   #45
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Why? How? Honestly, I'm not being confrontational, but I don't understand why other boomers' poor planning will affect me or cause me any "rude awakenings." Perhaps you're seeing something I'm not.

LadyPatriot
It’s a new version of the Ant and the Grasshopper fable. In the new version the ant (boomers who saved) and the grasshopper (boomers who didn’t) follow a similar path as in the original tale. The ant does everything right - saves, spends below his means, lives a relatively frugal life during the accumulation phase in order to have a comfortable retirement. The grasshopper doesn’t do squat about saving and enjoys living a life of luxury with the understanding the “government” will take care of him/her in the later years.

Time passes and the ant takes early retirement and enjoys all the things financially independent retirement has to offer. The grasshopper complains to the lobbyists about how unfair it is the grasshoppers have to continue working while the ant enjoys a life of leisure.

The lobbyists put pressure on the legislatures that their poor misunderstood grasshopper shouldn’t be penalized for not saving for retirement. After all, it just wasn’t his fault. He had mortgages and new car payments and boat payments and private school for the kiddos and trips several times a year and it took a lot of money to live the lifestyle they deserved. It just wasn’t fair the ant had everything going into retirement while the grasshopper had nothing.

So the government, in their infinite wisdom, said the ant should subsidize the grasshopper. The ant would pay hefty taxes on their retirement funds in order to help the grasshopper retire in reasonable comfort. So the ant cuts back on expenses in order to live within the reduced financial means and the grasshopper kicks the spending up a notch. After all, if he really gets in over his head financially he can file bankruptcy (which is another penalty in the way of increased prices for goods and services). The grasshopper’s motto is “nothing ventured, nothing gained”.

At this point the ant sells everything and moves to a small island off the coast of wherever. The grasshopper moves into a government housing project and survives on food stamps and Medicare and continues to whine about how unfair things are for him. Meanwhile, the ant sits on the veranda enjoying the cool breeze coming in off the ocean. He pops the top off a cold beer and doesn’t give a d@mn about anything. Because, after all, he is finally FIREd.
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Old 05-20-2011, 09:27 PM   #46
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. Why do you think 50% of the population don't pay taxes?
Untrue. 50% of the population doesn't owe FIT. I can't imagine how a person would live in this country and not pay taxes.

Hurt's your story, I know.
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Old 05-20-2011, 09:35 PM   #47
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Come on! Employment tax is similar to having a firm deduct for a pension. You are paying for a direct future benefit. Yea, I also know the courts say it is not guaranteed, so you can save your little fingers on that argument. They also pay sales tax and they pay the increased prices to corporations so they can send it to the government. It does not alter the fact that over 50% of the people do not pay income tax, a point I feel fairly sure you knew I was making, so the gotcha had little effect! But if it make you feel better, to say 'Yea, but they pay FICA' well OK.
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