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02-19-2020, 08:10 AM
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#101
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Posts: 1,635
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Quote:
Originally Posted by Gumby
How about a show of hands from all those who believe employers would raise your pay 6.2% if they suddenly didn't have to pay social security? Anyone? Bueller? Yeah, me neither.
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Oh, I'm sure they'd give you that 6.2%. Right after they give you a big raise due to lowering of the corporate tax rates!
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02-19-2020, 10:02 AM
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#102
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Thinks s/he gets paid by the post
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 4,203
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Yes, I believe corporations will increase salaries. However, not the day after a bill is signed. I believe in the free enterprise system. I believe business will pay for labor what it must to get qualified employees. No more and No less. What you are more likely to see, however, is a reduction in the cost of goods sold. Payroll tax, along with corporate income tax, are an expense, just like cost or raw materials, or labor. Those expenses are, to the max extent possible, included in the 'cost of goods sold'. If not, then the provider of capital takes a lower return on his investment, and at some point will invest is some other commodity.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
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02-20-2020, 06:21 PM
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#103
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Thinks s/he gets paid by the post
Join Date: Aug 2017
Posts: 2,040
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"Counting on?" No. "Expecting". Yes.
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Mid 50's or younger... are you counting on Social Security?
02-20-2020, 07:46 PM
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#104
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,927
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Mid 50's or younger... are you counting on Social Security?
54 yo here and, yes, max SS at age 70 is factored into our plan. We could survive a worst case scenario 25% cut if there is no action by Congress, in which case they can all get off my lawn.🤬
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02-20-2020, 07:53 PM
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#105
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Thinks s/he gets paid by the post
Join Date: Jan 2016
Location: Rural Alabama
Posts: 1,353
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Quote:
Originally Posted by badatmath
"Counting on?" No. "Expecting". Yes.
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+1
__________________
Projected retirement--2020 at age 48 (done!)
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02-21-2020, 06:52 AM
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#106
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Full time employment: Posting here.
Join Date: Jun 2017
Posts: 504
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Some employers would (or increase 401k match). I used to work for a fairly equitable employer.
As usual, higher paid/demand employees would move positions to get that pay raise and employers would eventually get there.
I don’t have the same confidence that lower pay/low demand workers would get a fair portion of that bump.
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02-21-2020, 11:17 AM
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#107
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Confused about dryer sheets
Join Date: Feb 2020
Posts: 6
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Currently 52, retired at 38... no intentions of utilizing social security.
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02-21-2020, 01:58 PM
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#108
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,197
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Quote:
Originally Posted by slick8511
Currently 52, retired at 38... no intentions of utilizing social security.
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Retiring at 38, there might not be a whole lot of SS for you anyway.
__________________
TGIM
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02-21-2020, 02:17 PM
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#109
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Thinks s/he gets paid by the post
Join Date: May 2014
Posts: 1,390
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Quote:
Originally Posted by slick8511
Currently 52, retired at 38... no intentions of utilizing social security.
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I would like to hear the story behind your ability to be able to retire at 38. How did you accomplish that? If you want you can start a new thread.
__________________
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. Charlie Munger
The first rule of compounding: Never interupt it unnecessarily. Charlie Munger
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02-22-2020, 10:30 AM
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#110
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Full time employment: Posting here.
Join Date: Jun 2017
Posts: 504
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Quote:
Originally Posted by UnrealizedPotential
I would like to hear the story behind your ability to be able to retire at 38. How did you accomplish that? If you want you can start a new thread.
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I just read a post of someone who retired on 25k with about 700k assets at this age on reddit.
With a high paying profession saving half, you can have the equivalent of 16 years max earnings for SS and that’s probably more than many people earn in a 40 year career.
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02-22-2020, 06:08 PM
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#111
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gone traveling
Join Date: Nov 2017
Location: State of
Posts: 165
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When we were in college back in the 80s the Econ profs said Don’t count on SS- we haven’t and don’t expect to get a dime.
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02-22-2020, 07:23 PM
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#112
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Full time employment: Posting here.
Join Date: Sep 2008
Posts: 998
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Agree, never banked on it. But now that I plan to take it in 3 1/2 yrs. Its looking pretty good. Would be happy to just get my money back. That would be epic.
To just break even. LOL LOL Paid the max into it for many years.
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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Mid 50's or younger... are you counting on Social Security?
02-23-2020, 06:29 AM
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#113
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Thinks s/he gets paid by the post
Join Date: Oct 2014
Posts: 1,677
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Mid 50's or younger... are you counting on Social Security?
I am 55. From the time I started working, I realized that counting solely on SS to fund my retirement was irresponsible. I figured that if I got anything, it would only be enough to pay the cable bill and buy a pizza every month.
As it turned out, SS will likely be more significant. We are fortunate that DH’s pension covers most of our needs, and we were disciplined enough to save a nice nest egg. So we will either spend more, make larger gifts to the offspring, or leave more in the estate.
I never considered the FICA taxes I paid as my money being put into the system for my benefit, and “I better get out at least what I paid in”. The FICA taxes I paid at the beginning of my working life were paying for my grandparents’ benefits, then later my parents. My girls are working now and paying taxes so their grandparents and father get benefits. When I start SS in about twelve years, my benefits will come courtesy of the people working at that time. I know that’s not exactly how the money flows, as there was a time when money coming in > money going out, but it’s how I’ve always thought about FICA taxes.
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02-23-2020, 08:47 AM
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#114
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Thinks s/he gets paid by the post
Join Date: Aug 2015
Posts: 1,890
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How many years of retirement have been lost to not planning on getting SS in retirement?
__________________
Consistently sets low goals and fails to achieve them.
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02-23-2020, 09:46 AM
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#115
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Confused about dryer sheets
Join Date: Feb 2020
Location: Valley Forge
Posts: 4
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I'm 50 and wife is 45.
I plan to retire by 65 or sooner depending how the nest egg goes. SS is not a factor in any retirement decision.
My thinking is I will wait until 70 before taking SS, as long as the market does not go into a major recession before then.
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02-23-2020, 02:20 PM
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#116
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Recycles dryer sheets
Join Date: Dec 2016
Posts: 93
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Quote:
Originally Posted by michelek
When we were in college back in the 80s the Econ profs said Don’t count on SS- we haven’t and don’t expect to get a dime.
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I wonder if that was before the big changes in 1983 to the FRA that got SS back on track to solvency?
Anyway, though I'm certainly not counting ONLY on SS, yes I include it in my calculations. Frankly, I'd be hard-pressed to retire before FRA if I didn't count it. And just as frankly, even as a pessimist I'm betting everyone currently in the system (even those in their 20's) will get at least half. That may not be a whole lot but it'd likely cover someone's most basic needs.
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02-23-2020, 06:59 PM
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#117
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Recycles dryer sheets
Join Date: Oct 2009
Posts: 246
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Quote:
Originally Posted by reneeh63
I wonder if that was before the big changes in 1983 to the FRA that got SS back on track to solvency?
Anyway, though I'm certainly not counting ONLY on SS, yes I include it in my calculations. Frankly, I'd be hard-pressed to retire before FRA if I didn't count it. And just as frankly, even as a pessimist I'm betting everyone currently in the system (even those in their 20's) will get at least half. That may not be a whole lot but it'd likely cover someone's most basic needs.
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53 here Fire 'd at 47. Working scenario no SS. Best case scenario a 75% cut.
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02-23-2020, 08:40 PM
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#118
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Full time employment: Posting here.
Join Date: Jul 2010
Location: San Francisco
Posts: 858
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Gen-X so I was always being told that SS wasn't going to be around when I retired, so I never included it in my planning. My assumptions were either I'd be fine without it, or I'd end up getting a raise.
At this point it seems likely to me that it will still be around, and I sometimes look at models where I assume I get 50% of my expected benefit, but I definitely don't make plans for having it for sure.
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02-23-2020, 10:18 PM
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#119
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Recycles dryer sheets
Join Date: Feb 2019
Posts: 51
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Quote:
Originally Posted by michelek
When we were in college back in the 80s the Econ profs said Don’t count on SS- we haven’t and don’t expect to get a dime.
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My parents always reminded me and my sister "don't put all your eggs in one basket" and "don't count your chickens before they hatch!" They always said make sure your retirement plan isn't banked on SS being your main or only source of retirement income. They knew the gov't couldn't keep their greedy paws off our trust fund and watched them rob it over their own working years. So they were smart not to "trust" that this mindset would somehow change and they would make good on their promises in full.
When they retired in 1994 at ages 55 and 50, they had enough secure additional income so they wouldn't need SS. Of course it was there for them and they still draw it, since they have both paid into it. But like they taught us, it's been all extra and they just spend it as they wish. We have planned the same way and definitely taught our 26 yr old son to do the same.
Our thought is: "It's better to have it and not need it, then to need it and not have it!
__________________
"Financial Independence happens the day that you have enough money to walk away from your job and do whatever, whenever you want!"
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02-23-2020, 10:45 PM
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#120
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Recycles dryer sheets
Join Date: Feb 2019
Posts: 51
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Quote:
Originally Posted by corn18
How many years of retirement have been lost to not planning on getting SS in retirement?
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IDK, but we have spent far less years stressing over whether or not SS will be there by NOT planning on it as part of retirement. We trust ourselves more than we trust the gov't to keep their promises. I'd rather bank on what we can control, then put our future security in something out of our control. We just plan for the unknown and hope for the best!
So no, we won't "need it" and yes, we could retire today if we wanted. But we still plan to work for a couple more years because 1. my DH still like his job enough and gets paid very, very well for something he can basically do in his sleep and 2. We want to spend like drunk sailors on shore leave in retirement.... So "OMY" or "TMY" in our case is significant.
If/when we get SS, it will all be spent on #whateverthehellwewant or having fun doing things with our son and hopefully grand kids. So if it gets cut or reduced down, it really won't affect our ability to securely live our best life.
__________________
"Financial Independence happens the day that you have enough money to walk away from your job and do whatever, whenever you want!"
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