Join Early Retirement Today
Closed Thread
 
Thread Tools Search this Thread Display Modes
So it Begins: "Proposals" for Soc. Sec.
Old 04-14-2015, 09:47 AM   #1
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Posts: 1,846
So it Begins: "Proposals" for Soc. Sec.

Quote:
New Jersey Gov. Chris Christie is expected to call for reduced Social Security benefits for seniors earning over $80,000 and eliminating the benefit entirely for individuals making $200,000 and up, along with raising the retirement age to 69 from 67.
Christie to Call for Raising Age for Social Security, Cutting Benefit for Some Seniors - WSJ (Link is from email sharing, so probably will work for a while)

This is vague and likely won't go anywhere, but it gets the conversation started. (My fear of this is why I've never included this income source in our retirement calculations)
__________________

__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline  
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-14-2015, 09:59 AM   #2
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 2,986
Does he know that in those income brackets, 85% of SS is taxed already? Smells like a benefit reduction to me, and it's been that way for years.
__________________

__________________
athena53 is online now  
Old 04-14-2015, 10:06 AM   #3
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
Politics schmolitics.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline  
Old 04-14-2015, 10:11 AM   #4
Thinks s/he gets paid by the post
2017ish's Avatar
 
Join Date: Apr 2012
Posts: 1,846
The hypothetical, complete removal of benefits for some would, if it occurred, be an additional reason for Roth conversions in the years prior to RMDs and SS claiming (unless and until Roth withdrawals were also roped into the calculations).
__________________
OMY * 3 2ish Done 7.28.17
2017ish is offline  
Old 04-14-2015, 10:13 AM   #5
Thinks s/he gets paid by the post
timo2's Avatar
 
Join Date: Jul 2011
Location: Rio Rancho
Posts: 1,438
My POV on these sort of discussions is not financial or political, but medical and fitness for work. This forum has already had some discussion on this. Even though people are living longer, I have not noticed that many people still being in working condition (mental and/or physical) past 65-67. Also, many organizations do not want employees hanging around that long. IMO, this should be the starting place for any proposals. If we don't want any major disruptions to the order of things, we should avoid the nightly news stories of destitute 66 year olds languishing in Walmart parking lots.
__________________
"We live the lives we lead because of the thoughts we think" Michael O’Neill
timo2 is offline  
Old 04-14-2015, 10:30 AM   #6
Recycles dryer sheets
 
Join Date: Aug 2010
Posts: 322
I am not sure why he would touch this lightning rod at this point in his campaign.
__________________
"Time wounds all heels...." - Groucho Marx
LRDave is offline  
Old 04-14-2015, 10:30 AM   #7
Thinks s/he gets paid by the post
growing_older's Avatar
 
Join Date: Jun 2007
Posts: 2,608
This would substantially change the calculation for when Roth is preferable to Trad, we well as the cost/benefit of Roth conversions. But even if it goes forward as an actual proposal, it's a long time before anything becomes definite, not to mention it will be a long time to enact (if ever).
__________________
growing_older is offline  
Old 04-14-2015, 11:16 AM   #8
Full time employment: Posting here.
Jack_Pine's Avatar
 
Join Date: Apr 2013
Posts: 834
Quote:
Originally Posted by LRDave View Post
I am not sure why he would touch this lightning rod at this point in his campaign.
He is trying to differentiate himself from what could be a large field of candidates. Surprised to not see any talk from him about removing the payroll tax cap. Maybe I missed it.
__________________
The Constitution. It's not just a good idea...it's the law.
Jack_Pine is offline  
Old 04-14-2015, 11:30 AM   #9
Thinks s/he gets paid by the post
 
Join Date: Sep 2012
Location: Seattle
Posts: 2,906
Quote:
Originally Posted by Jack_Pine View Post
He is trying to differentiate himself from what could be a large field of candidates. Surprised to not see any talk from him about removing the payroll tax cap. Maybe I missed it.
If they do that they should also allow more credits to be accumulated in a year by high earners.

If I work a high stress job for a few years, putting in 70 to 80 hour weeks and gain high income, I would expect a few more credits than someone working a low stress 40 hour work week.
__________________
Fermion is offline  
Old 04-14-2015, 11:44 AM   #10
Full time employment: Posting here.
Jack_Pine's Avatar
 
Join Date: Apr 2013
Posts: 834
Quote:
Originally Posted by Fermion View Post
If they do that they should also allow more credits to be accumulated in a year by high earners.

If I work a high stress job for a few years, putting in 70 to 80 hour weeks and gain high income, I would expect a few more credits than someone working a low stress 40 hour work week.
I am with you.
__________________
The Constitution. It's not just a good idea...it's the law.
Jack_Pine is offline  
Old 04-14-2015, 12:04 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Feb 2014
Posts: 1,050
Wow, jumps right on third rail. Bye bye CC.
__________________
jim584672 is offline  
Old 04-14-2015, 12:22 PM   #12
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 2,986
Quote:
Originally Posted by Fermion View Post
If they do that they should also allow more credits to be accumulated in a year by high earners.

If I work a high stress job for a few years, putting in 70 to 80 hour weeks and gain high income, I would expect a few more credits than someone working a low stress 40 hour work week.
If they kept the benefit formula consistent, you'd get more SS but not at a very good rate. Right now the formula is 95% of your first $826 of average indexed monthly earnings, plus 32% of the amount between $826 and $4,980 plus 15% of the remainder (where the remainder has already been limited to the SS max in the averaging formula).

And don't even get me started on the huge discrepancy between what high-earners and the 40-quarter minimum-wage group pay for the exact same Medicare A coverage over their careers.
__________________
athena53 is online now  
Old 04-14-2015, 12:31 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,266
Quote:
Originally Posted by Chuckanut View Post
If the retirement age is to be raised, then laws must be put into place to prevent age discrimination. Or some type of retirement 'phase-in', and/or employment 'phase-out' needs to be put into place.

I have seen to many 50 and 60 'somethings' drain their retirement accounts when they were prematurely laid off, and the jobs handed to younger workers, foreigners, or sent over seas.

Of course, the individual who has learned to LBYM often will not suffer the full consequences of premature job loss. Relying on employer loyalty no longer makes sense.

There already are laws.... they are just not followed.... and it is very hard to prove a case in court... new laws will not make any difference...
__________________
Texas Proud is offline  
Old 04-14-2015, 12:32 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,266
Quote:
Originally Posted by Fermion View Post
If they do that they should also allow more credits to be accumulated in a year by high earners.

If I work a high stress job for a few years, putting in 70 to 80 hour weeks and gain high income, I would expect a few more credits than someone working a low stress 40 hour work week.
What would more credits do He is also proposing to scale back SS if you make too much... (have not yet read the article... so maybe I am just blowing smoke....).
__________________
Texas Proud is offline  
Old 04-14-2015, 12:49 PM   #15
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 2,986
Quote:
Originally Posted by Texas Proud View Post
What would more credits do He is also proposing to scale back SS if you make too much... (have not yet read the article... so maybe I am just blowing smoke....).
Ah, but what is "too much"? Especially in NJ, which has some of the most atrocious property taxes in the nation, even if you can afford to buy a house in a decent enighborhood. Glad I don't live there anymore.
__________________
athena53 is online now  
Old 04-14-2015, 01:02 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Quote:
Originally Posted by Bestwifeever View Post
Politics schmolitics.
+1

Just think, only nineteen months until the election...

Quote:
Originally Posted by jim584672 View Post
Wow, jumps right on third rail. Bye bye CC.
Quote:
Originally Posted by LRDave View Post
I am not sure why he would touch this lightning rod at this point in his campaign.
Warren Buffett and Ken Langone (of Home Depot) are among the rich/famous who have said that they don't want or need SS. Of course, most of us aren't billionaires...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline  
Old 04-14-2015, 01:06 PM   #17
Moderator Emeritus
 
Join Date: Oct 2007
Posts: 4,929
Ignore it. As with many other proposals we will hear over the next year, the proposal is not intended to actually get to the House or Senate floor for a vote. It's just intended to appeal to selected core constituencies and differentiate the person making the proposal from others.

These sort of things have no real impact on retirement planning, beyond the consideration we give to other possible events of similar likelihood in our retirement years such as meteor strikes and global thermonuclear war. In other words, it is far more likely that we would go through a major market fluctuation or an outbreak of stagflation than that this proposal would make it into law.

There are more important things to worry about than fluff intended to draw attention. There are kittens that need their tummies rubbed, and puppies that are desperate for a game of tug-o-war.


Sent from my iPad using Early Retirement Forum
__________________
M Paquette is offline  
Old 04-14-2015, 03:03 PM   #18
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,532
It's been an interesting political discussion.

__________________

__________________
I heard the call to do nothing. So I answered it.
Walt34 is online now  
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
% of income from Soc Sec & Pensions Midpack FIRE and Money 45 07-03-2008 11:33 PM
Soc Sec penalty question sailfish FIRE and Money 2 06-11-2008 06:40 PM
Deferred Compensation and Early Soc Sec 4th&Goal FIRE and Money 3 11-30-2007 08:18 PM
Prudential White Paper on Maximizing Soc Sec hogwild FIRE and Money 89 05-24-2006 05:05 PM

 

 
All times are GMT -6. The time now is 03:13 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.