Social Security

[cleoeo]

The Feds have just announced that we needn't worry unduly about the Social Security Trust Fund. It is solvent through the year 2026.
Unfortunately, I was born in 1961. I'm elegible for Social Security in 2027. I just wish I had a personal retirement plan that didn't involve matching the numbers on six little balls.

[Ada_Doom]

Oh dear. That's what happens when you have an ageing population. Or at least that's why I won't be getting a state pension by the time I retire.

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Cake or death?

[Idnew]

If your job doesn't have one for you or your self employed you can set up your own IRA and deduct the amount you contribute off your taxes. Of course it would be taxable when you start drawing on it when your 59 1/2. Check with your bank they can give you the details on how to set one up.

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(ö¿ö)Too Many Freaks, Not Enough Circuses(ô¿ô)

My Home Spot (http://members.tripod.com/~freeatlast_3/Doing_Whatever.htm) My Family (http://members.tripod.com/~freeatlast_3/MyFamily.htm)

If you depend on the government for your retirement, you'll be working until you die. Trust me, you don't want to bank on Social Security.

My Father worked for over 40 years as an Electrical Engineer, and when he retired he got $600.00 a month from Social Security. Then there was his retirement package from his company, of approx $1200.00 a month. If Social Security did not count the retirement package as income, he would have got approx. $1000.00 a month in SS benefits, but either way, to me, that's chicken feed. That's not even $2000.00 a month, when he was used to making $5000.00 or more a month while working.

He took extravagant vacations every year, hardly ever saved any money from year to year, and based his entire retirement on his company and SS retirement benefits. In the end he had enough to cruise around the country in a motorhome, but only after he sold his house.

Myself, on the other hand, worked for 25 years playing guitar in a "local bar band" (as it were) and saved my money all my life, made some good investments (in companies like Apple Computer, IBM, and Microsoft for example), and retired at age 40 with well over a half a million dollars in the bank. And I'm not even eligible for Social Security for another 17 years, as I'm now 45. If I die tommorow (let's hope not...) my kids will have enough money that they will never have to work if they choose not to, and my wife can grow old and gray with no worries. But assuming that ain't gonna happen, we can live until we're old hippies in relative prosperity, and still send the kids to a decent college so they can also make a good living on their own, and leave the kids a nice bank when our number comes up.

So my advice to you is this:

Invest in your own future by getting the best education you can. There is a ton of money and resources available for educational purposes. Use them! Then find something you really like to do to make a living that pays at least twice to three times what you need for daily survival, never spend more than necessary, and save up a bunch of money...

Make good smart investments in companies that are reasonably sure not to fail, and that have good returns on investments. A small investment in IBM and Apple Computer paid off very well for me back in the 80's. IBM specifically. IBM stock plummeted one day. My Grandmother (a CPA) called me and said to buy as much IBM stock as I could lay my hands on. I only had a few thousand dollars available at the time due to other investments and obligations etc., but I bought as much as I could. The next day it went back up to where it had been before, and I sold the stock, and made a sweet profit. If I had had her resources, I'd be a millionaire now... She made millions that day! http://www.dumblaws.com/ubb/biggrin.gif

No matter how tough things get, never ever touch your retirement fund until you actually retire. That is the worst mistake people make is thinking they can put it back in after they take it out. It hardly ever happens that way. It is far easier to tough it out and keep going, than to start over. But don't make the mistake of putting an age restriction on your retirement bank account unless you have more than one account. A friend of mine did that with only one account, then got killed in a car accident before he ever got to spend a dime of the money. He did leave a hefty sum to his wife and kids though... So it turned out ok, but I still wouldn't do it, unless you have two or more accounts, and only put a restriction like that on one of them.

And finally, live well, but not extravagantly. Instead of that expensive TV set, or fancy car like your neighbor has, buy a cheaper one. You may not have all the bells and whistles your neighbor has, but but you will have a better time when ya gets old. Playing "Keeping up with the Jones's" can get really expensive, specially if Mr. Jones happens to be rich.

So there you have it. Finacial advice from a "Retired Hippie Guitar Player".

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"Thou Shalt Not Interrupt The Guitar Solo."

[This message has been edited by Ax Slinger (edited March 24, 2001).]

Sorry... I can get pretty long winded at times... http://www.dumblaws.com/ubb/biggrin.gif

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"Thou Shalt Not Interrupt The Guitar Solo."

[RockBottomDLux]

thats ok! we dont mind!
we want to know everything on your mind (dont take it the wrong way) this is where u express it all!!

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Keep rollin', rollin', rollin', rollin'......or what ever you are doing!

[Serendipity]

Ax, what's your advice on the markets these days, now that hi-tech stocks are falling through the floor? I heard about spread betting, and it looks like a sound way to make a killing - if you're lucky. Where's the next big growth market?

That's an interesting story, BTW. Your real name's not Doonesbury, by any chance?

[paulgro]

SS was not meant to retire on. It was invented as a helper to a retirement package or savings for retirement.

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"I have not failed. I've just found
10,000 ways that won't work."

Ferrets Place (http://pub20.ezboard.com/bferretscomputerstuff)

[cleoeo]

Social Security is a classic pyramid scheme. I've seen the numbers. Anyone who retired a decade ago and lives to the life expectancy will have drawn out ten times more than they paid in, AFTER factoring in inflation. Anyone currently drawing on Social Security that thinks they're only getting back what they paid in is wrong. They are getting back far more. It was never intended to be enough to live comfortably on, but that's what it became after Nixon introduced the "Cost Of Living Alowance" back in the 1970's. Back then we had lots of people paying in at the bottom of the pyramid and relatively few collecting at the top.
I don't expect to ever get a nickel from Social Security, even though I pay in a far higher percentage of my wages than my Dad ever did. It'll all be gone. That's just the way it is. You'll notice how both Bush and Gore promised during their campaigns that "no one at or near retirement will see a reduction in their benefits". Those of us who aren't "at or near retirement" had better look after ourselves.

I couldn't have said it better myself, cleoeo. As I already said, if you count on the Government for retirement, you'll be working until you die. You sure as hell ain't going to be able to retire unless you take matters into your own hands.

Yeah, both Bush and Gore said nobody was going to get a reduction in SS benefits. That's very true. But surely won't get more than $10.00 a year in monthly increases either, once you're on SS benefits. That is the standard yearly "cost of living" increase. $10.00 whole dollars a month. Oh boy! Kids, ya might as well unpack your bags, yer not going to Harvard!

As far as I am concerned the only way the Government is going to keep Social Security solvent is by doing what they do best. Taking more of your hard earned money. Bush's so called "Tax Cut" is going to make the rich richer, and the middle to lower income people are once again left to fend for themselves.

I am a good American and all that jazz. I paid my taxes (all 40% of it, as a musician), did my duty and fought for my country (only to come home and get spit on), but it seems like the more you give them the more they want, and I just don't think it's fair.

The best thing I ever did for myself and my family, was deciding not to depend on anybody for my survival. It is better to count on yourself.

I really don't know about the market these days. It's been awhile since I made any investments. But I do still have my favorite CPA on the "payroll"... My Grandmother. So I'll ask her and get back to you. I will say this, she has never steered me wrong yet. http://www.dumblaws.com/ubb/biggrin.gif

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"Thou Shalt Not Interrupt The Guitar Solo."

[CBranski]

The subject of Social Security angers me to no end. In looking at my pay stubs, the government takes approximately $130 of my pay to support Social Security and Medicare, and I know for certain that I'll never see a red cent of that again.

There's a few things that people need to wake up and realize about Social Security: (Some points were stated earlier in this thread, but bear repeating http://www.dumblaws.com/ubb/smile.gif

1) Social Security is a Ponzi scheme that only Tony Soprano could love. Cleoeo is correct when he states that current retirees get back ten times what they put in. In this scenario, you often have poorer and younger workers being forced to subsidize wealthy retirees. This is wrong, dead wrong.

2) Paulgro is correct when he states that Social Security was never meant to provide a comfortable retirement, but rather as a safety net for those with little or no savings. In addition, many more workers put into the system at SS's inception (1935) than do now. Frankly, I'm getting a little tired of having to provide other people with a comfortable life at the detriment of my own future. It should further be known that despite recent scare tactics employed by the AARP, et al., most seniors are very comfortable financially. Case in point: Two-thirds of all the assets in this country are controlled by people over the age of fifty.

I believe the only way we can recoup what we put in this system is to bite the bullet and look down the barrel of an angry senior's lobby and abolish Social Security. Those presently receiving benefits should continue to do so. The rest of us should be allowed to invest our money and provide for ourselves.

(And a special note regarding a post made previously by Ax Slinger about living simply: right on, I know people uncer the age of 35 who spend the majority of their time working to pay for things they'll never use and impress dates that never call...)




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"Every Man a King, But No One Wears a Crown."
"If You Can't Beat Them, Arrange to Have Them Beaten."

[paulgro]

One thing people don't seem to realize is your money doesn't go into a fund for you, but pays for the generation before you. Remember the first people that got SS never put a dime in the fund when it started. Every generation after has always put in for the one before. SS was never meant to have a health plan or anything else attached to it. That's another thing that drags it down and makes us pay more.

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"I have not failed. I've just found
10,000 ways that won't work."

Ferrets Place (http://pub20.ezboard.com/bferretscomputerstuff)

[Idnew]

It is a total joke for sure. I read an article on a woman that had like retired about 1 year after ss was implemented and drew on it until she died. I forget the amount now she paid and got back. But she liked lived to be in her 90's.

Ok my x father in law will be 100 this year so he retired about 30 years after ss but he has now been drawing five years longer than he paid in. His wife is 88. Not that I want anybody to start croaking or anything, but we are living longer than the life expetency. The deduction for ss has been 4.65% for a long time now. I look for them to raise the percentage.

My x started us an IRA account when it came out so along with that and my ss then I should be able to live comfortably I hope.

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(ö¿ö)Too Many Freaks, Not Enough Circuses(ô¿ô)

My Home Spot (http://members.tripod.com/~freeatlast_3/Doing_Whatever.htm) My Family (http://members.tripod.com/~freeatlast_3/MyFamily.htm)

[Ada_Doom]

It's all very good in theory, but it is a touch Utopian, and now that there are more old people than young people, the bottom of the barrel is in sight, and we no longer have anything in reserve. As soon as I graduate and get a steady job, I'm starting a pension plan even though it sounds dull and unnecessary in your twenties.

Slightly off the point, but company pensions are not always reliable either. My dad spent twenty years paying into a company pension fund, which was frozen when the company was taken over, and he had to start all over again in the new company. He's made up some of the loss with extra contributions, but he'll still be very short when he retires.

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Cake or death?

[paulgro]

I have 2 pension plans I put money into and if SS is still around when I retire I should get more money then I do working. I won't be rich, but I'll be able to live.

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"I have not failed. I've just found
10,000 ways that won't work."

Ferrets Place (http://pub20.ezboard.com/bferretscomputerstuff)

[Serendipity]

It's certainly a situation that's not just affecting the US, here in the UK I know that I'll not receive a state pension, I gather the bubble has burst in Germany, which for many years has enjoyed ther hughest standard of living in Europe.

The point Ada raised about company pensions is important, too. If your company has such a scheme then use it by all means, but have at least one private pension besides. It's a revolting habit of certain big corporations (no name no pack drill) to bankroll the company pension fund, which should be independently managed.

[~wildangel~]

We also have 2 pension plans, we won't have to rely on SS, thank God...We want to retire in style http://www.dumblaws.com/ubb/wink.gif
Maybe on our yaught....sipping margaritas on our deck...well I can dream cant I?
It will be true though, we plan on a good decent retirement!

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"Make it idiot-proof and someone will make a better idiot"


My Palace! (http://fairmayden1.homestead.com/fairmayden.html)

[Ada_Doom]

*cough* Mirror Group Dippy?

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Cake or death?

[Serendipity]

That man Maxwell was one of those I had in mind, yes, but MGN are not unique.

[Ada_Doom]

Unfortunately. http://www.dumblaws.com/ubb/frown.gif

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"There's always been Starkadders at Cold Comfort...."

Originally posted by Idnew:
If your job doesn't have one for you or your self employed you can set up your own IRA and deduct the amount you contribute off your taxes. Of course it would be taxable when you start drawing on it when your 59 1/2. Check with your bank they can give you the details on how to set one up.

Yeah IRA, Ha Ha Ha, it's true that it is tax deductible. But, what is the tax rate going to be in 2026 when you start withdrawing it??? Either way, IRA is not a safe route to go on retirement. You would be better off to bite the bullet and buy into stocks. :-)

[cleoeo]

We haven't heard a peep from the Bush administration about their plan to shift a portion of worker's Social Security payments into the market lately. I wonder if the Enron debacle has anything to do with it.
For you furriners, Bush was going to save Social Security by privatizing a good portion of it, figuring that America's captians of industry could easily make everything solvent. Right. Now his biggest campaign contributer, Enron Corporation, has gone spectacularly belly-up and stuck its employees with pension plans full of worthless stock.

[TV_Guy]

I'm starting saving now at the age of 20. I figure with smart thinking there's no reason not to have a million or two when I retire.

In New Zealand there seems to be a mentality of gloom regarding money. Everyone considers a million only possible if you win lotto when really it's not impossible at all. Plus our goverment coddles us way too much.

[BeetleJuice]

Take my advice everyone that is working now. Put some money aside. I have been on disability for 7 years now due to uncontrolled seizures. I draw lass than 600 a month. WAY less.
I am now 41 years old and I have absolutely nothiing to show for it.
Medicare is a joke. I cannot afford any of the medication that doesn't help after I pay rent, utilies and what little in groceries with whats left over.
Medicare will only pay "UP TO 80%" of what THEY consider allowable.
Almost daily, prices rise yet my income remains the same. Granted, I have recently found an employer that is sympathetic and kind. I can work full time for the next 4 monthsand then I have a choice. Stop working or work at a job thats paying not much more than I draw now. Don't get me wrong, I like my job but my choices are extremely limited. I am underemployed. Here I am, 41 college educated and all I'm allowed is running a cash register at a convienience store.
Put money aside. Believe me, you never know what the future holds

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