How many of you can RE now, but are saving to raise your std of living?

[2B]

Oh heavens, that's not fair.  This is a mathematical reality and there need be no agenda. 

It is what it is and the results can be assessed on the basis of probability.  Were I in a minority political caucus I would not want money extracted from my constituents paychecks to fund, exclusively and disproportionately, a different constituency from which my own contituents would likely always be excluded.

If that was not your intent, I apologize.

Right now minorities are paying a disproportionate share of social security based on their benefits. Minorities are disproportionately in lower paying jobs and are gouged for over 15% for SS and medicare. The life expectancies of all people in lower paying careers/occupations are generally lower. Therefore, they contribute a larger portion of their earnings and receive a smaller portion of the benefits.

It always makes me wonder why most self-appointed minority leaders are rabid Demos. Meaningful SS reform would benefit minorities more.

 

[modlair]

If that was not your intent, I apologize.

No problem. The point was not so much why and how, but what results from it. Pensions are even more likely to be slashed as a result of this minority contribution reality. There is no way that government pensions (and Soc. Sec.) will survive merely by having worker contributions increased. The political toes stepped on by trying to fund payouts with worker contributions will preclude that.

I suspect that the number of people drawing SS, greatly exceeding other government pensions, will guarantee that it is the last "pension" to be slashed, but it will likely come under attack after all the others are gutted.

As for other comments that only 60% of the board draws a pension, or expects to (and I suppose I exclude SS from that) is interesting. A survey was quoted. It would be good to know the numbers.

 

[sgeeeee]

. . . There is no way that government pensions (and Soc. Sec.) will survive merely by having worker contributions increased.  . . .

Actually, this is quite possible. It probably won't be the way SS is fixed. It is more likely that it will be a combination of whittling down benefits and increasing contributions. But if you visit the SS web site and read their FAQs about the program, you can see that SS is not in such dire straights as some have tried to lead us to believe.

Now Medicare . . . that's a whole 'nother story.

 

[rogersteciak]

I'd venture to guess 80% of the people on this board are either on pensions or expect to be. 

Well, Roger won't be, apparently.

I have no pension.  Instead, my retirement is going to be funded by my own self-directed IRA (which includs rolled-over 401Ks) and my financial net assets in the taxable domain.  I prefer it this way because I have more control over my own financial destiny.

 

[rogersteciak]

How does spending time on an ER discussion board benefit someone who doesn't plan to ER?

When you can't afford to retire, you have to continue working because you have no choice.  When you can afford to retire but decide to keep working anyway, it means you have the choice between working and not working.  I may very well decide to stop working someday, but it will be because I choose to do so.

I should point out that "work" to me is broader in scope than as most people define it.  To me, "work" includes wealth building, which is building up one's sources of passive and portfolio incomes.  In other words, "work" to me means being the boss with the money that can make me more money through my efforts to grow my wealth (i.e., financial net assets).  I may also receive earned income on a W-2 or 1099 form of paycheck in the process, but the overriding effort is to become wealthier by owning businesses and making investments.

The reason early retirement comes into the picture is the time element.  My time is my own now.  I decide what I want to do and when I want to do it.  I am my own boss.  I decide whether to work or not.  I decide whether to give myself the day (or month or year or whatever) off.  Having the financial resources to be able to retire early means having the ability to decide how one spends one's time -- relaxing, working for oneself, or working for someone else.  There is no such thing as "non-free time" when you are able to retire early because all time is free.  That is the connection between ER and continuing to work because you decide that is how you want to spend your time.

 

[youbet]

.

and receive a smaller portion of the benefits.

Actually, low wage earners have a higher percentage of their salary replaced by SS than high wage earners.  SS is progressive on payouts.  But, you're right, it is a flat tax for collections.

 

[2B]

Actually, low wage earners have a higher percentage of their salary replaced by SS than high wage earners.  SS is progressive on payouts.  But, you're right, it is a flat tax for collections.

I agree on the payout but they won't get benefits as long. Low wage earners have a statistically lower life expectancy.

 

[youbet]

I agree on the payout but they won't get benefits as long.  Low wage earners have a statistically lower life expectancy.

Darn!    I had several chances in life to work two jobs and earn more money.  If I would have known I could have also lived longer by doing so, I would have.  I figured burning the candle at both ends like that would have led to a lower life expectancy.

 

[modlair]

Darn! Angry I had several chances in life to work two jobs and earn more money. If I would have known I could have also lived longer by doing so, I would have. I figured burning the candle at both ends like that would have led to a lower life expectancy.

But if you live longer, your SWR has to be lower. Look at the bright side.

It's very confusing.

 

[Robert the Red]

Right now minorities are paying a disproportionate share of social security based on their benefits.  Minorities are disproportionately in lower paying jobs and are gouged for over 15% for SS and medicare.  The life expectancies of all people in lower paying careers/occupations are generally lower.  Therefore, they contribute a larger portion of their earnings and receive a smaller portion of the benefits.

This is not accurate.  More minorities receive survivor and disability benefits, and the net effect of this (and other factors) is that minorities as a whole get a somewhat higher payback rate from the SS system than do whites, even though they do not (on average) collect their old age SS annuities for as long as whites do.

 

[jj]

This is not accurate.  More minorities receive survivor and disability benefits, and the net effect of this (and other factors) is that minorities as a whole get a somewhat higher payback rate from the SS system than do whites, even though they do not (on average) collect their old age SS annuities for as long as whites do.

curious... what is your source for this information?