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The money is not there. That's the problem. The SSTF holds Treasuries. But Treasuries are not money... they have to be redeemed. And the only way to redeem them is with the issuance of more debt, because we've run fiscal deficits year in and year out for decades.
Payroll taxes are not going to be able to keep up with benefits as more and more retirees start collecting checks while living longer and longer. Some think the solution is to remove the cap on income subject to the payroll tax, but why on Earth should I pay more without a commensurate promise of collecting more? Or even any real promise that what I may stand to collect some day won't be reduced or even eliminated via "means testing".
SS is the very definition of a Ponzi scheme. Ponzi schemes always collapse.
I personally hold some 30 year treasury bonds that will mature in 2020. The fact that the money is not there is of no concern to me. It's not my problem. If the US Treasury starts welshing on its debt, we will all have far more problems than SS.
My generation paid extra into the system for 35 years because we knew there was going to be a shortfall. If you don't want to pay extra, it's your problem, not mine. By the time the trust fund is exhausted I'll be 84 years old, and if I'm not dead I won't have many years left.
Maybe my generation set a bad example by being too responsible. The payroll tax has not increased since 1984, and the trust fund has been building the whole time. That let you kick the can down the road, figuring things would always be great instead of paying attention to your future. However you decide to deal with it is fine with me. I won't be around to care.
People on welfare/free medical are not living better than stable, middle class Americans. They don't have retirement funds just like other people.
Yes but you don't need to save for medical. While people in the middle class won't qualify for the benefits you get and worse, they'll have to depend on their kids to help them while their kids are already stressed and struggling. I know this for a fact.
Here's what you don't realize, the middle class is subsidizing their lifestyle on debt so off to work they go. If they can't get credit their lifestyle would drop dramatically. People on welfare can't get debt. Understand?
It is different when you are plugged into all the assistance available... here it takes about 65k for a family equivalent....
Also a different mindset... the basics covered plus there are options for extras... like Grad Night at Disneyland, Smart Phones, Flat Screen TV... Cable, etc...
I don't own a smart phone, flat screen, never lived in a home with Cable yet each tenant in subsidized housing I manage has these things... a few also buy new base model cars... I bought one new car in 2002 and still own it... my truck is 1985...
Don't get me wrong.. I have come across seniors that had no idea help was available... at the time they had 650 in social security and rent was 450... so 150 a month for all life necessities... was able to get them into Senior Section 8 and rent typically dropped from $400 to $140...
If you search online there are articles that say having $1 mill is not enough (even though no mention on how far out retirement is). It makes me wonder, if $1 mill isn't enough then how are people planning on retiring at all.
don't we all earn different amounts when working all over the country and live different lifestyles ?
it may not be a lifestyle you like but people make whatever they earn work . retirement is no different .
no matter what you have , if someone told you " here is 50k , but you have to spend it " everyone of us would find a way. if it was done yearly eventually that money would be your new life style .
Plenty of California retired live just fine on 30 to 40k because they have no debt and property taxes here are limited... utilities are modest due to mile climate, cars can last a very long time and simple interests like church, gardening and senior activities make up social life...
As crazy as it sounds... a lot of my neighbors are living in 800k free and clear homes with 35k annual income... homes they have lived in for 50 or more years...
There overall plan is to sell the property at the point should they need more income... and since all are in their mid 80's or older... sounds like they are on track.
There single biggest expense category is Insurance of all kinds with Taxes being next.
Plenty of California retired live just fine on 30 to 40k because they have no debt and property taxes here are limited... utilities are modest due to mile climate, cars can last a very long time and simple interests like church, gardening and senior activities make up social life...
As crazy as it sounds... a lot of my neighbors are living in 800k free and clear homes with 35k annual income... homes they have lived in for 50 or more years...
There overall plan is to sell the property at the point should they need more income... and since all are in their mid 80's or older... sounds like they are on track.
There single biggest expense category is Insurance of all kinds with Taxes being next.
Yup. I just looked at my 2017 numbers and I spent $30310.
The house is worth about 1.3 million, give or take, 2 cars, one a Porsche. Utilities are nothing, maybe 3k a year for gas, electric, water, garbage, internet.
I took 2 cross country trips and played way too much golf (very cheap if you are retired and can book at the last minute - thanks Golf Now).
Houses and cars last much longer than they do on the east coast ...... no salt, no ice, no freezing temps. I spent $54 on car maintenance last year.
it shows you the drastic differences between all of us . i clocked in 2017 spending 182k . we bought a new car and my wife had a huge dental bill and taxes which is included . but portfolio gains were 313k . so after 3 years of 6 figure spending we broke another new high tonight .
Last edited by mathjak107; 01-05-2018 at 04:41 PM..
it shows you the drastic differences between all of us . i clocked in 2017 spending 182k . we bought a new car and my wife had a huge dental bill which is included . but portfolio gains were 313k . so after 3 years of 6 figure spending we broke another new high tonight .
Yeah, the portfolio gains were insane. My big dental expenses start next week. Probably come close to 30k on that.....
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