Social Security One leg of Retirement stool

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shaz
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Re: Social Security One leg of Retirement stool

Post by shaz » Fri Jan 24, 2020 3:44 pm

Caustic Burno wrote:
Fri Jan 24, 2020 2:39 pm
Brute 23 wrote:
Fri Jan 24, 2020 1:45 pm
ChrisB wrote:
Fri Jan 24, 2020 11:59 am

That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck. Then when they hit retirement age, the 50% of savers/investors will be fine and the other 50% will have to get some kind of government support for them to live. It will be another way to punish the responsible.
We dont need to do away with it but we do need to privatize it. The govt can set up a mandated retirement plan with low risk investments and group it just like IRAs. Make it part of your taxes with penalties for not paying or just pull it like they do now.

The problem is it's become mandated welfare that is in the hole and the ponzi scheme only continues if you get new money in.


That’s SS 2.0.
The problem is the government.
Ike went into SS to bail out the post office. LBJ tore the lid off and emptied it to pay for the Great Society.
Had politicians left it alone it would be flush with cash.

Here in lies the problem politicians and our cash= mismanagement and corruption every time.
Did anyone ever get elected saying "I'm going to quit funding a bunch of stuff and pay down the debt"? I'll bet no one would vote for him/her . Too much is dependent on government over spending. We all act like the federal debt is not our debt.


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Re: Social Security One leg of Retirement stool

Post by Brute 23 » Fri Jan 24, 2020 4:44 pm

That is exactly why it should be privatized. Politicians are using it for their campaigns and not what it was intended for.
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Re: Social Security One leg of Retirement stool

Post by hurleyjd » Fri Jan 24, 2020 6:04 pm

Caustic Burno wrote:
Fri Jan 24, 2020 2:39 pm
Brute 23 wrote:
Fri Jan 24, 2020 1:45 pm
ChrisB wrote:
Fri Jan 24, 2020 11:59 am

That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck. Then when they hit retirement age, the 50% of savers/investors will be fine and the other 50% will have to get some kind of government support for them to live. It will be another way to punish the responsible.
We dont need to do away with it but we do need to privatize it. The govt can set up a mandated retirement plan with low risk investments and group it just like IRAs. Make it part of your taxes with penalties for not paying or just pull it like they do now.

The problem is it's become mandated welfare that is in the hole and the ponzi scheme only continues if you get new money in.

That’s SS 2.0.
The problem is the government.
Ike went into SS to bail out the post office. LBJ tore the lid off and emptied it to pay for the Great Society.
Had politicians left it alone it would be flush with cash.

Here in lies the problem politicians and our cash= mismanagement and corruption every time.
The SS trust fund at the end of 2018 had 2.8 trillion in it. The money used for other government operations was borrowed and a special interest bearing bonds were placed in it. These bonds are drawing about 2.5% interest at the time. There are short term bonds and 20 year long term bonds.

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Re: Social Security One leg of Retirement stool

Post by farmerjan » Sat Jan 25, 2020 11:32 pm

I have talked to several "financial consultants" and more and more are saying to start SS sooner rather than later. It all depends on what the difference is in what you get at 62, full retirement like mine @66, or 70. But Caustic is right, it takes an average of 8-12 years to "break even", less money at 62 but you will be ahead of the game until at least 72 or so. The thing of it is, a couple of advisors ; and interestingly enough they are all women, have said to take it sooner and take less than to wait. They have all said, what if you die at 70 or even 80.... and if you take it and still work some, then you will have a better quality of life while you can enjoy it.
I sat down with the SS lady before I turned 65 to get some advice, and figures and because of the medicare part A sign up. She said she could not give me advice, but could give me all the options and that I could make up my mind as to what would benefit me.
My family is long lived... lots of 80's 90's and some 100's. So alot of years on SS that by taking it sooner, I would eventually get less than if I waited and took it later and got more. But, how healthy will I be and how much will I be able to take advantage of the increased amount?
What if I die at 80? How much less would I get total? I have opted to take it "sooner" , not by alot, but I don't have a very big 401K at work either and that I am trying to not touch until I have to. I am still working some, and my SS is 2/3 of what I made monthly on average, so I am actually a little better off now. I have a good supplement ins along with my medicare and am paying less than I did while working and have better coverage with next to no deductibles.

If you don't need the SS, I would still take it, put it in a Roth IRA and put it into some investments that are not too risky. Then if something did happen to you, at least that much would not be forfeit back to the gov when you die.
Our Gen mgr retired at 65, thinking he was doing things right as advised. 4 months later he dropped dead of a heart attack and it financially hurt his wife's income for the future. He had been talking about starting his SS sooner and was advised not to.....He would have had some of that extra put away if he had.

I live very modestly and don't have any real desire to do alot of traveling, but a few places I would like to see. I can do that on what I am bringing in with part-time work and SS. My cattle income is extra, although not real great amounts. If prices go up as I think they will do in another year or 2 then I will sell down at least half of mine and bank that money. I also don't have grandkids to spend money on, but I was not brought up to spend money all the time either. Right now I am saving a little of the SS and I have spent some on some things I have wanted rather than wait.
I am not sorry that I started mine a little early, and think I should have started it sooner.

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Re: Social Security One leg of Retirement stool

Post by Caustic Burno » Sun Jan 26, 2020 6:24 am

Stocker Steve wrote:
Fri Jan 24, 2020 12:16 pm
[quote="Caustic Burno" My financial guy says take your SS as soon as you can. I agree if you wait till full retirement age you will have to draw until 82 to break even.
But once you are in your sixties - - the odds are you or your wife will live well past 82, so why not go for the risk free increase in SS benifit?
[/quote]

It’s not risk free, the risk is life.
My older sister waited to draw.
She was healthy caught the flu turned to pneumonia and died two years ago this month at 73.
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Re: Social Security One leg of Retirement stool

Post by Dave » Sun Jan 26, 2020 8:35 am

I couldn't retire early and collect the pension from the job until I had 20 years in. That put me to almost 65. So I waited to 66 to get full SS and full pension from the job. We had options on the survivor benefits on the pension. Went with 50%. The wife had a cousin who retired and said he was going to get every possible dime out of the pension. He took the the no survivor benefit option. Died 2 months later. Left his wife with only SS, a couple of newer vehicles, and a smallish house in town. No other benefits or finances as they had spent it all living pay check to pay check.

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Re: Social Security One leg of Retirement stool

Post by Jeanne - Simme Valley » Sun Jan 26, 2020 9:44 am

When hubby was alive and working, every time he got a raise or bonus, we put it immediately back into a retirement account. I figured we had been surviving on the amount of money coming in prior to the raise, we would just continue to make do.
That was a blessing for me now. He died at the age of 65. Planned on retiring the following year.
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Re: Social Security One leg of Retirement stool

Post by ClodHopper37869 » Sun Jan 26, 2020 11:22 am

[/quote]
That's my concern when people talk about wanting to eliminate SS and letting people manage their own money. 50% of the people will do so, the other 50% will buy a new truck.
[/quote]

I beg to differ, Its more like 75% - 25%

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Re: Social Security One leg of Retirement stool

Post by farmerjan » Sun Jan 26, 2020 12:04 pm

75% will spend it now, only 25% will manage it for the future.

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Re: Social Security One leg of Retirement stool

Post by Caustic Burno » Sun Jan 26, 2020 12:20 pm

farmerjan wrote:
Sun Jan 26, 2020 12:04 pm
75% will spend it now, only 25% will manage it for the future.
I know it has been figured by someone at sometime. I wonder what elder care would cost the government per person,
without SS.
Money doesn’t buy happiness, but the lack does buy misery.

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Re: Social Security One leg of Retirement stool

Post by TexasBred » Sun Jan 26, 2020 2:21 pm

hurleyjd wrote:
Fri Jan 24, 2020 6:04 pm
Caustic Burno wrote:
Fri Jan 24, 2020 2:39 pm
Brute 23 wrote:
Fri Jan 24, 2020 1:45 pm


We dont need to do away with it but we do need to privatize it. The govt can set up a mandated retirement plan with low risk investments and group it just like IRAs. Make it part of your taxes with penalties for not paying or just pull it like they do now.

The problem is it's become mandated welfare that is in the hole and the ponzi scheme only continues if you get new money in.

That’s SS 2.0.
The problem is the government.
Ike went into SS to bail out the post office. LBJ tore the lid off and emptied it to pay for the Great Society.
Had politicians left it alone it would be flush with cash.

Here in lies the problem politicians and our cash= mismanagement and corruption every time.
The SS trust fund at the end of 2018 had 2.8 trillion in it. The money used for other government operations was borrowed and a special interest bearing bonds were placed in it. These bonds are drawing about 2.5% interest at the time. There are short term bonds and 20 year long term bonds.
True but most won't accept that.
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Re: Social Security One leg of Retirement stool

Post by tom4018 » Sun Jan 26, 2020 7:55 pm

herofan wrote:
Fri Jan 24, 2020 9:07 am
As a KY teacher, we don’t get SS; we get the KTRS. I plan to retire at 55, which is three years away, and just roll with it.
Hopefully it is still there for you. That system is a mess and some of the hardest people I ever dealt with. sad to say the Federal government was easier to deal with.

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Re: Social Security One leg of Retirement stool

Post by Caustic Burno » Sun Jan 26, 2020 8:25 pm

tom4018 wrote:
Sun Jan 26, 2020 7:55 pm
herofan wrote:
Fri Jan 24, 2020 9:07 am
As a KY teacher, we don’t get SS; we get the KTRS. I plan to retire at 55, which is three years away, and just roll with it.
Hopefully it is still there for you. That system is a mess and some of the hardest people I ever dealt with. sad to say the Federal government was easier to deal with.
Texas teachers don’t either.
There is like a half dozen states that teachers got screwed over in a federal law. At one time Senator Cruz was trying to get that legislation amended.
Money doesn’t buy happiness, but the lack does buy misery.

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Re: Social Security One leg of Retirement stool

Post by Brute 23 » Sun Jan 26, 2020 10:38 pm

Caustic Burno wrote:
Sun Jan 26, 2020 8:25 pm
tom4018 wrote:
Sun Jan 26, 2020 7:55 pm
herofan wrote:
Fri Jan 24, 2020 9:07 am
As a KY teacher, we don’t get SS; we get the KTRS. I plan to retire at 55, which is three years away, and just roll with it.
Hopefully it is still there for you. That system is a mess and some of the hardest people I ever dealt with. sad to say the Federal government was easier to deal with.
Texas teachers don’t either.
There is like a half dozen states that teachers got screwed over in a federal law. At one time Senator Cruz was trying to get that legislation amended.
It can go either way in Texas. Some schools do TRS and some take out SS. There are people who started in the private sector and will try to go back to a SS school after they qualify for full TRS to get both and vise versa.
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Re: Social Security One leg of Retirement stool

Post by backhoeboogie » Mon Jan 27, 2020 10:07 am

I've been paying 47 years now with my employer matching my tax. Imagine all that money in a mutual fund.

I agree with money management issues. People can't afford things like rent, but they have new furniture and new cars and they gotta have the best cell phones too. So far the government hasn't cut welfare. But they always say SS is at risk.
Our ancestors gave us this. They fought to make it what it is. All we have to do is defend it.

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