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But again - the math doesn't support what you are saying. Any 401k has produced better rates of return than social security over any given 40 year working career.
Assuming people contribute and assuming people educate themselves on the stock market and assuming people manage their accounts.
Most don't though and it's becoming clear that 401K will not be able to replace company pensions.
That is one reason so many talks have been had in Congress regarding future retirement issues of Americans.
If everyone were an astute, prudent investor in 401K plans there would be no need for SS would there ?
But that is simply not true. The majority of Americans don't know how to manage their 401K plans.
Your math doesn't take into account reality. 8% moderate return per year ? Does your math predict market crashes ? Does your math manage people emotions when they see their value drop and sell thinking they're taking a "lessor loss" ?
Assuming people contribute and assuming people educate themselves on the stock market and assuming people manage their accounts.
Most don't though and it's becoming clear that 401K will not be able to replace company pensions.
That is one reason so many talks have been had in Congress regarding future retirement issues of Americans.
If everyone were an astute, prudent investor in 401K plans there would be no need for SS would there ?
But that is simply not true. The majority of Americans don't know how to manage their 401K plans.
Your math doesn't take into account reality. 8% moderate return per year ? Does your math predict market crashes ? Does your math manage people emotions when they see their value drop and sell thinking they're taking a "lessor loss" ?
That math took into account the crash of 2008. Going from a 12% annualized return to an 8% return is still better than the sub-2% that SS gives.
If a person is stupid enough to not invest in their retirement, then they should pay the consequences. Don't punish everyone else by forcing us to put our money into an inefficient system such as SS. The emotional state of a person when they see fluctuations in their accounts shouldn't be a concern of a government. That is the individual's problem to deal with.
That math took into account the crash of 2008. Going from a 12% annualized return to an 8% return is still better than the sub-2% that SS gives.
If a person is stupid enough to not invest in their retirement, then they should pay the consequences. Don't punish everyone else by forcing us to put our money into an inefficient system such as SS. The emotional state of a person when they see fluctuations in their accounts shouldn't be a concern of a government. That is the individual's problem to deal with.
Without financial education it will become our problem when they get too old to work and have no money.
FICA is forced retirement savings from every worker.
The funding of it just needs to be fixed.
The "rich" are individuals and don't own you although many here seem to think so.
What is preventing you from going out on your own and starting up your own business so that no one "owns" you ? Then you can pay yourself whatever you want.
See..that's America for you..the land of opportunity.
As long as you are beholden to a paycheck from someone else's bank account then you have to do their bidding. But no one is forcing that on you but yourself.
I already did my lifes work bubba. Been retired for 2 years,and i did not do it by borderline illegal or unethical practices.............
Have we ever had a bigger and more arrogant crybaby in the White House?
Ask him or any Democrat what 'fair share' means, and watch that person go silent on ya....
Wait until the avalanche of new revenue they expect from raising the capital gains tax rate fails to materialize; that's never worked for anybody who's tried it in the past fifty years, and it won't work for him either.
Wonder why income tax rates being 90% for the rich under eisenhower worked so well???
Wonder why income tax rates being 90% for the rich under eisenhower worked so well???
Really ? Do you think they paid 90% of their income to the IRS ?
What were the deductions at that time ?
You are only looking at one side of this equation.
Yes there were higher rates but also more deductions.
You say you are retired so you surely must remember that ALL interest paid was deductible..CC cards, car loans, any type of loan as one example.
Sure rates might have been 90% but what did they actually pay after deductions ?
Or are you saying there were no deductions back then and 90% of their income went to the IRS ?
Interest, most dividends and short term cap gains ARE taxed at the same rate as your paycheck.
How's about you understand how it works before you post your opinion ?
No they are not. They are taxed at a flat rate of 15% regardless of income. That is chump change to a rich person but alot to somebody that may retire from a company that he/she had a stock buying program with and maybe they get an extra $10,000 a year in dividends off of. These things should be taxes as INCOME not a different rate. If you make a million a year on stocks, you should pay 39%, not 15%. If you make $24,000 a year with $10,000 in dividends and are over 65, you should pay maybe 3% on it. I am sick of the rich robbing us blind. It needs to stop. Now.
That will totally screw anyone who sells a home that has increased in value over several years, and anyone with a pension or a 401k/IRA. Are you sure you really want to screw the middle class and everyone else that way just to give more money to a government that wastes more and more of it every day?
That will force the removal of the benefits cap. That will put Social Security in even more of a financial bind than it's in now. No. For some inexplicable reason, you've swallowed manipulative propaganda BS hook, line, and sinker.
PLEASE inform yourself. No need to continue being an uninformed tool when the IRS publishes actual tax data.
If you sell a home that has been your ONLY residence for a period of 10 years, then you should be exempt but I am not about to extend that to flippers and investors. They should pay the full frieght. As for 401K and IRA, you can choose whether you want the exemption now or when you get the pay out.
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