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Another new way? How many do we need?
There are numerous ways to prepare for the day when you will not work. You just gotta pick one that fits your lifestyle and ability.
I knew back in 1971 that I was not going to have a funded retirement. Fact is, I never even wanted one! Long before anyone ever heard of a 401(k), and all the other various programs many of us began a serious effort at saving or accumulating (or both) the money that would be needed later. Our parents told us to do it that way.
Most of America would sign on for having their SS withholding deposited in their own individual account and for their own individual benefit in 5 SECONDS so that it could be invested in stocks and bonds that would amass a fortune over the course of a lifetime. People should be allowed to keep what they earn and own and have it work for them in the form of an investment in the economy. Social security is a stupid system. We can take care of our own retirement through education and individual investment. Just give us control over our money and let us put it where it can do the most good: invested in a Capitalist American economy for 50 years straight.
People not smart or disciplined enough to set up a direct deposit into a savings account are going to be smart enough to invest their SS money?
People not smart or disciplined enough to set up a direct deposit into a savings account are going to be smart enough to invest their SS money?
They don't need to be smart enough. The withholding is direct deposited into an account controlled by a trustee. The individual can't touch it. But he can select investments like stocks, bonds, mutual funds. His money remains HIS MONEY, but it out of reach just like current social security withholdings, until he retires, when it is converted to an annuity.
Most Americans suck at investing and want no part of it . they reference it even in these forums with words like casino and gambling .
do you really think these people want their money in equities ?
Hence the new education requirements. All children will be required to take money management courses every year K-12. We can get rid of social studies and other stupidity. Replace it with basic life education. A high school graduate should be an expert at stocks, bonds, mutual funds, mortgages, taxation, avoiding debt where possible, etc. Money. How to earn it, save it, invest it, and keep it. Much more important than learning Spanish and French and revisionist SJW history.
it all sounds lovely -it will never happen . you know how schools work . how many even grasp the basic concepts of what is taught already ? the thought that anyone getting out of school will be an expert in anything is pretty far fetched . i am not saying it isn't a good idea to teach this , i would love to see it . but things are what they are and students will not learn what they have no interest in .
the whole idea of ss was insurance , not your sole means of support . like any insurance money , it generally will not be in stock markets . we have had as long as 15 years for real returns to turn positive after inflation adjustments so i doubt you will ever see this happening . i wish it did happen but i doubt you will ever see it happen .
They don't need to be smart enough. The withholding is direct deposited into an account controlled by a trustee. The individual can't touch it. But he can select investments like stocks, bonds, mutual funds. His money remains HIS MONEY, but it out of reach just like current social security withholdings, until he retires, when it is converted to an annuity.
Wouldn't they need to be smart enough to choose investments? Education? Don't people already have access to all sorts of investment information now and still don't care?
Hence the new education requirements. All children will be required to take money management courses every year K-12. We can get rid of social studies and other stupidity. Replace it with basic life education. A high school graduate should be an expert at stocks, bonds, mutual funds, mortgages, taxation, avoiding debt where possible, etc. Money. How to earn it, save it, invest it, and keep it. Much more important than learning Spanish and French and revisionist SJW history.
At one time I taught such a course along with working with a major university in training teacher to teach such. I taught very bright high income students with a mix of some not so bright and not so high income. The affluent bright kids caught on very well and received a much above grade level education. Lower income students were sorta clueless. I didn't teach them all at the same time. Students in the middle were a mixed bag.
The higher end students in many cases had their parents buy them mutual funds so they could apply what they learned. At the time I owned Fidelity Magellan and used it as a case study in class. You got it thats what parents often bought for their kids.
Upper strata kids pulled out their TI 85's to do their calculations and other students oh well stumbled along with paper and pencil. Kids in higher level math owned TI 85's and had them 24/7. Other kids if lucky had them for use in class.
The bright affluent kids are very successful and financially well off and often share how appreciative they are of what they learned. Other kids not as financially well off even if moving on in life.
Money and financial success were not a part of their culture and their daily experiences didn't reinforce their becoming successful. It wasn't that parents didn't care it was just not a self discipline they had.
I have relatives who grew up not well off who are financially secured and retired with investments to help secure it. They in many cases took private sector jobs with pensions as part of a long term benefits plan.
We were taught that by our relatives even if not themselves as financially secure. Kids took care of the adults when they aged and needed help. It was just the way things were and are for us.
I grew up with many others who were in many cases from single parent homes who went to college did well had great careers and are financially successful. Others from similar backgrounds not so well. At age 70 it has all played out for most of us and our children who seem to be following in the paths of their parents good or bad.
Wouldn't they need to be smart enough to choose investments? Education? Don't people already have access to all sorts of investment information now and still don't care?
Yesss, you can lead to water but the reality is they often don't want to be and are led to be by those in their private life.
Wouldn't they need to be smart enough to choose investments? Education? Don't people already have access to all sorts of investment information now and still don't care?
So, what's the solution? Continuing to give the government our money each paycheck in exchange for the "guarantee" of a Social Security benefit sometime between the age of 62 and 70 (possibly later for younger Americans) all because a certain percentage of the population can't be trusted to handle money?
As an employee I paid $5,372.35 into Social Security in 2017. If I do that every single year until I am 65 and it grows at even a reasonable rate (say 7.5%), the amount of principal plus interest would have grown to be around $700,000, possibly more if it earns more than 7.5 percent on average. What are the chances that I even receive $700k in benefits back from the government via Social Security during my retirement years? Probably pretty slim.
Essentially, money is almost certainly being used to subsidize other government programs and other SS beneficiaries. That above $700k figure isn't even counting the portion of Social Security that my employer paid in on my behalf (an equal amount to what I contributed) every paycheck. If you give me $10,744.70 per year (my SS contribution plus my employer's contribution on my half) to invest in a private account that I control, I would have no problem growing that account and having more money available to me at the current SS retirement age (62 to 70) than what will be available to me via the current Social Security system. Plus, my beneficiaries would be able to receive a large principal sum when I pass away, as I would be using a safe withdrawal method (3 to 4 percent), ensuring that the principal stays intact. That doesn't happen with Social Security (though your spouse can still get benefits after your death).
Of course, then Congress wouldn't be able to funnel my money to pet projects or military spending or subsidizing whatever other programs that they might have earmarked with my money and my employer's money and that is the real reason that they system will never change.
Most of America would sign on for having their SS withholding deposited in their own individual account and for their own individual benefit in 5 SECONDS so that it could be invested in stocks and bonds that would amass a fortune over the course of a lifetime. People should be allowed to keep what they earn and own and have it work for them in the form of an investment in the economy. Social security is a stupid system. We can take care of our own retirement through education and individual investment. Just give us control over our money and let us put it where it can do the most good: invested in a Capitalist American economy for 50 years straight.
Except for the people who have no self control, that would spend that money instead of investing it, and become society's burden as soon as they stopped working. People like that need a "non-voluntary savings" program like SS.
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