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I hope they make this optional for those of us that take jobs here and there after retirement.
I don't want to be forced into a retirement plan if I'm already retired
I think you are likely a smart guy even if I don't agree with your politics. Smart enough to know what $2M would be worth if everyone has $2M+. Smart enough to know that there are not enough jobs for full employment. Smart enough to know that unless wages increase, forcing that kind of expense on every worker will require higher wages.
1) Nonsense. No new expense. Same 15% expense we pay now. Just redirected from the State to the individual making the payments.
2) Nonsense. $2,000,000 would be worth $2,000,000 even if lots of people have $2,000,000.
3) There are always enough jobs for full employment. We have it now. Remember you can easily accumulate the $2,000,000 even if you are a petty min wage worker for the whole trip. A fate which befalls VERY FEW PEOPLE. But even then, MILLIONAIRE! If you are like the more typical good worker, MANY MILLIONS. And all yours in your account at the end. And all yours and STILL EARNING money as you draw it down over time. And ALL YOURS to give to your kids or favorite charity when you croak.
The reason the statists and collectivists hate the mere mention of a system like this is that it would work magnificently and cut the cronies and power brokers out of the equation. No more leftist-Democrats selling doddering old arthritis-ridden fools on the false premise that they are "saving them" from the greedy people. Which is the biggest damnable lie ever anyway.
Here's an interesting summary. And this is at 10% of your salary, not the 15% you are paying now. And this is for 40 years. My plan starts the minute you collect a paycheck at 16, so 50 years, which would be about $1,800,000 at 10% and MUCH MUCH MORE at the 15% withheld now.
Also, the money does not stop compounding when you start collecting. You set up a withdrawal annuity and the principal left in the account just keeps earning and earning and earning and earning.
And one more thing. I wonder what the effect on the economy would be if the ENTIRE WORKFORCE is reinvesting 15% of their salary in the American economy every day of every month of every year for a 50 year career. I am going to guess it would cause an expansion in the economy and more jobs and more business and more demand for quality labor and higher wages. Which would then translate to yet more MILLIONS in the retirement accounts.
This is what happens when you harness the BEST IN PEOPLE and stop PENALIZING IT.
You can feel all the obligation you want. With money you own and earn. But if you're going to jump on some faux moral high horse and mandate that others obey your edict and agree with your depraved view of your fellow man and loot and plunder people to pay other people under penalty of death and/or imprisonment, then I reject your moral philosophy and declare it bankrupt.
We've had Social Security for 80 years. Your political opinion on this is way out there on the lunatic fringe. Try not paying your Federal income taxes for a couple of years, spout that line of rhetoric to the IRS and the judge in Federal court, and see what happens. We live in a collective society and have for generations. You wouldn't sell much of that North Jersey real estate if there were no roads, water, sewer, electricity, schools, police, fire, hospitals, or everything else we all collectively pay for as part of living in a civilization. You're not even trying to mask your politics of greed.
Am getting fed up to the back teeth with all this wailing about how hard some have it with student debt. My generation had student loans (1980's and 1990's) with interest rates damn sight higher than the nearly nil kids today are paying. You sucked it up and paid them off. But then again we seemed to have known better than take out 20K student loans to get a *degree* in dog grooming.
Even today several co-workers and media reports tell of young adults working two or more jobs to pay off their student loans and or making other economies which is just as many of us did in our day.
By all media accounts the job market for college graduates has vastly improved the past two or so years. You want to get off your duff and take a job *ANY* job not just your "dream" and start taking care of your obligations.
That is the problem with this country today, everyone is looking for a touch. Buy a house you cannot afford, we have a bailout for that. Can't pay off your student loans? We'll fix that as well. Setting these sort of precedents is just bad because it means others will expect the same.
Student loans in the 80's and 90's were NOTHING compared to today. The cost of college has skyrocketed, 20k won't pay for a year at most colleges with books and dorms. And many graduates with even STEM degrees can't find entry level jobs over $10 - $12 per hour in their fields.
I'll let you know when 'media accounts' start hiring new graduates. Until then,you might want to rethink their veracity.
No, we stop subsidizing anyone. Over 50 years, even a low level person will earn enough with compounding to retire comfortably. Even the pettiest functionary in retail or the merest of underlings in an office could retire nicely. The power of investing 15% of your earnings with compounding every week from the time you are 16 is unbelievable.
Also, this system is just. Those that make a lot will have the most comfortable retirements. Such a system would reward hard work and advancement. But even a janitor who does nothing but push a broom for 50 years will do just fine.
And the innocent young taxpayers would no longer face the disgusting horror of having their property stripped and handed over to irresponsible old people who didn't take care of business. EVERYBODY would take care of business because there would be no choice.
There would also be pride in watching your fortune build over the decades as the economy expanded.
We need to do this. It's morally correct, would yield the best result, and would keep the money out of the hands of the greedy collectivist corrupt crony-infested State.
Marc, maybe you should stick with real estate sales. Today's interest rates don't compound to a hill of beans, and equity investments don't compound at all. Compounding only works when you have a guaranteed investment paying a good amount over inflation.
If younger people can't afford to save now, how would being forced to save a certain percentage change that? I think that would have a significant impact, particularly among lower income workers, most of whom don't have student loans, just low wages.
The original plan was intended to force full participation which means that more than 10% of every individual worker's pay will go to retirement (SS and GSA) that he/she would have no control over.
My guess is that if this plan were put into practice that it would lead to the phase out of SS. I think this "plan" or one similar to it, has been proposed before as a replacement for SS, and as recently as the Bush Administration. It was swept under the rug after the stock market melt down in 2008-2010 because so many people lost so much of their retirement monies.
One of the reasons that so many state pension plans are so shaky today and why some states faced huge deficits had to do with the fact that their investments took massive hits. Getting 7-8% annually entails considerably more risk than getting 3-4%.
This plan in this form is being pushed by Progressives to the left of many Progressives
Marc, maybe you should stick with real estate sales. Today's interest rates don't compound to a hill of beans, and equity investments don't compound at all. Compounding only works when you have a guaranteed investment paying a good amount over inflation.
I don't think we have the same investment portfolio! Compounding is a function of math and even at low levels there is compounding and equities have been on a roll since the March 2009 bottom with a ton of compounding.
Wow, start a thread and leave for a day or two and when you come back! Wow!
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