About Social Security numbers...
9 years ago
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- 9 years ago
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Social Security
Comments (14)rosalynd, SS is a "pay as you go system". That means that the money taken out of your paycheck every week is spent to fund THOSE ALREADY RECEIVING SS checks every month. You seem to be operating under the misinformed belief that whatever money you are presently required to pay into the system is somehow being earmarked for YOU at a future point in time. It's not. When you retire and are eligible to collect SS benefits it will the younger working population's tax contributions that will fund your checks. And there's the rub... there is a large population "bubble" of retirees hitting 62-65 and that means a LOSS of people contributing weekly and an increase in the number of people withdrawing benefits! SS was originally set up as an INSURANCE policy against a catastrophe like the Great Deperssion; never was it ever intended to solely fund someone's retirement. But over the years, a large segement of the population has presumed just that. It was designed to be part of a "three legged stool"... SS, pensions from worker's companies, and personal SAVINGS. Additionally, the age of retirement set at the inception of the system (65, I believe) was actually beyond the average age of death of most Americans. My parents withdrew every dime they'd contributed to the system within 18 months of receiving their first check! Mum is now nearly 80, so she's been on the dole for nigh on 15 years now. Roll forward to 2006... companies are defaulting on defined pension plans, the age of retirement has been increased only a bit (is many years below the average age of death; about 15 years for me!), and the average American doesn't SAVE a dime. The IRA was introduced to stimulate retirement savings... the contribution one may make has increased from $2K at its inception to nearly $4500 now. Additionally, they've sweetened the pot for lower earners by permitting you to pay taxes "up front" (presumably when you are earning less and paying less), allowing the nut to grow and compound TAX-FREE until you decide to withdraw funds from it. In light of the loss of company pension plans this is a nice deal... but only for the disciplined. Taken in total, this is an impending disaster. The "cures" are not going to be popular, but they are necessary. Let's hope more politians find the stomach to stand up and state "the emperor isn't wearing any clothes". Payroll taxes will HAVE to go up. The retirement age MUST be raised to more closely reflect increased life spans, and (I believe) we will have to means test. The very wealthy will have to say good bye to their "cut" for the greater good. After all, that's how an INSURANCE policy works, more people with "safe" histories pay to cover the losses of unluckier policy holders. This isn't something for the courts, this is something for the voting booth....See MorePossible phone scam - has anyone had one of these?
Comments (14)Giving out your number isn't the problem. They use auto-dialers, they just go down the list. I have 2 cell phones and home line listed with Do not call. When I get a number I don't recognize, I don't answer. I can then use the info saved by phone logs, to enter that info on Do Not call.gov and turn them in. I got a call at 5 to 7 in the morning, didn't have my glasses on, so I answered it. Robo call in Spanish. will add that one when I go to Do Not Call. I wait a week, and add several calls a week. I read somewhere, it's better to not answer if you don't recognize the call number, they will not keep calling a number that doesn't answer....See MoreSmall Social Security COLA this time
Comments (11)chisue, take another look at how Social Security benefit amounts work, it's not how you say. As an example, just to keep the numbers simple, let's say a person qualifies at age 62 and starts then. They get 75% of the amount they'd get at 66. Real numbers, let's say it's $7500 at year at 62 and it would have been $10000 at 66. By waiting, they're getting a higher amount, yes, but that's not "a return on their investment". What they passed up getting was $7500 per year for 4 years = $30,000. It takes a lot of years with that $2500 increase (which will get cost of living adjustments) to equal the $30000 they passed up. If you factor in interest cost, for someone who isn't working, unless they feel confident to live to a ripe old age, taking it sooner can be better. See what I mean?...See MoreGood resource to learn about Social Security and Medicare.
Comments (6)cooper and sushipup, Thank you so much for the quick response. Yes, suhipup, I read your posting and others you posted in the past. They are very informative. I also read postings from other folks on this forum regarding the subjects. It made me realize that it would be better for me to find a comprehensive, updated source of information in one place instead of reading piecemeal. I will be back later to ask for inputs after checking out the sources you provided. Cannot focus on this subject since I have to shop for a new car now after the current one just got totalled. Life surely has its twist....See More- 9 years ago
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