How to save social security

[ifitworks]

HOW TO SAVE SOCIAL SECURITY

(Links may have to be pasted in website location.)
IF YOU LIKE THESE IDEAS EMAIL TO FRIENDS ASSOCIATES LEGISLATORS

Create a tax free savings Plan for Old Age, Disability and Survivors.

Make mandatory at 1% of income for those currently age 44-36, 2% of income for those currently age 36-28, and 3% of income for those currently age 18-28. Allow voluntary contribution up to 12% tax free savings.

Max contribution cap at amount that would provide $3000-$4000 per month cola adjusted benefits. Since this is more than typical SSA benefits it would make plan attractive to voters.

Ninety percent of funds used by FHA to originate or guarantee home loans up to x times individual account balance with max home loan of amount income qualifies for with cap of $250k on value of residence; cola adjusted. Ten percent of funds used for secured Small business loans.

Plan would be like IRA but withdraw tax free at age 62 or earlier, when disabled, or at death for survivors. Old age, survivors and disability come out of this fund before SSA fund. Withdrawal should be tax free as this replaces SSA funds. This would also make plan attractive to voters. If funds in plan sufficient for twenty years most males would never draw SSA funds. Average SSA pay-out is about $1000 per month.

SSA still administers distribution of funds.
Fund held in individual account earning interest at mortgage rates. Balance inheritable by children in their account.

Speculation but could use part of savings to buy long term disability insurance and term life insurance with govt regulated policy. Let SSA operate more like insurance company with ability to seek underwriting spreading risk. Could also design plan to create long term disability insurance policy that would stay with member for life. I realize SSA does this now and this plan as described does also but marketing/packaging it as portable less costly alternative to commercial plans could also make plan attractive to voters.

Once baby boomer bulge is past Social Security rates could go down when large percentage of members begin to use plan funds instead of SSA funds; based on experience.

This is compromise between privatizing SSA and current SSA.

 

[editec]

Much easier solution?

End the regressive nature of the tax.

Get rid of the $110,000 cap subject to the taxation.

Start SS taxing CAPITAL GAINS, another approach.

 

[Political Junky]

Much easier solution?

End the regressive nature of the tax.

Get rid of the $110,000 cap subject to the taxation.

Start SS taxing CAPITAL GAINS, another approach.

Absolutely, that would make Social Security carefree forever.

 

[Mad Scientist]

1% Wall Street Tax.

Yeah I know, that's just too much.

 

[Aurin]

Why does Social Security need saving?

 

[whitehall]

Social Security can be saved if the federal government stops pissing away the money but that ain't likely. The federal government stole the money from day one and LBJ made it "legal" that SS funds would go into the "general fund".

 

[CallieAnn]

I have an idea how to save Social Security and Medicare....Why not cut Obama's paycheck and make him pay the country back for all those grand vacations his wife took on the nation's dollar.

Leave the old folks alone. My parents worked the better part of their lives and put into Medicare and Social Security. Why should they give up any part of it to fix a mess Obama made?

I am praying that people in this country do the right thing and wake up. The best thing that could happen to us would be for Obama to be impeached.

 

[lynn63]

There would be no problems with social security if the government was not allowed to dip into those funds. Since they do we should eliminate the program and come up with another plan.

 

[iaanhayden]

The other attractiveness is this, communal Security is not a individual asset. If a person has a catastrophe an all his assets are consumed to pay for it, communal Security continues intact. It holds approaching while your savings would be swabbed out. There is no annuity or life insurance policy that can supply that kind of security net.

 

[editec]

Social security does not need saving.

The boomers more than paid for their SS benefits during the last 40 years

Our DEMOCRACY, however, does need saving.

 

[lynn63]

The boomers were not paying for their benefits because their money was spent on the current beneficiaries. There is no savings account where they set aside our SS deductions for when we retire.

 

[editec]

The boomers were not paying for their benefits because their money was spent on the current beneficiaries. There is no savings account where they set aside our SS deductions for when we retire.

SS has $2,500,000,000 owed to it by the federal government, that is true.

Now if you imagine that those debts are meaningless, I suppose you also think that the rest of the NATIONAL DEBT is likewise meaningless?

Let's face it, the American people had best be the FIRST IN LINE to get paid.

You think taking away people's guns will cause a revolution?

Try taking away people's incomes and just watch the shitstorm that will follow that.

 

[Politico]

Social Security is a Ponzi scheme. It can't be saved. The end can only be extended.

 

[editec]

Social Security is a Ponzi scheme. It can't be saved. The end can only be extended.

In that sense, society itself is a Ponzi scheme.

 

[Dugdale_Jukes]

HOW TO SAVE SOCIAL SECURITY

(Links may have to be pasted in website location.)
IF YOU LIKE THESE IDEAS EMAIL TO FRIENDS ASSOCIATES LEGISLATORS

Create a tax free savings Plan for Old Age, Disability and Survivors.

Make mandatory at 1% of income for those currently age 44-36, 2% of income for those currently age 36-28, and 3% of income for those currently age 18-28. Allow voluntary contribution up to 12% tax free savings.

Max contribution cap at amount that would provide $3000-$4000 per month cola adjusted benefits. Since this is more than typical SSA benefits it would make plan attractive to voters.

Ninety percent of funds used by FHA to originate or guarantee home loans up to x times individual account balance with max home loan of amount income qualifies for with cap of $250k on value of residence; cola adjusted. Ten percent of funds used for secured Small business loans.

Plan would be like IRA but withdraw tax free at age 62 or earlier, when disabled, or at death for survivors. Old age, survivors and disability come out of this fund before SSA fund. Withdrawal should be tax free as this replaces SSA funds. This would also make plan attractive to voters. If funds in plan sufficient for twenty years most males would never draw SSA funds. Average SSA pay-out is about $1000 per month.

SSA still administers distribution of funds.
Fund held in individual account earning interest at mortgage rates. Balance inheritable by children in their account.

Speculation but could use part of savings to buy long term disability insurance and term life insurance with govt regulated policy. Let SSA operate more like insurance company with ability to seek underwriting spreading risk. Could also design plan to create long term disability insurance policy that would stay with member for life. I realize SSA does this now and this plan as described does also but marketing/packaging it as portable less costly alternative to commercial plans could also make plan attractive to voters.

Once baby boomer bulge is past Social Security rates could go down when large percentage of members begin to use plan funds instead of SSA funds; based on experience.

This is compromise between privatizing SSA and current SSA.

Seeds of some good ideas there.

Some stinkers; for example, heritability except at some diminished rate for spousal and underage children is an insane proposition.

Disability needs cleaned up. Get people who never paid in out of the disability system; no one's disabled child belongs on a system for retirement. Another insanity of the current system.

Rates? Probably 5% is a reasonable minimum regardless of age, with employers' share at 2.5%. With a million dollar pay-in cap, the employer/self-employed portion would probably have to be eliminated at some far lower amount, maybe around $250k.

Floor? Figure someone earning $20k/a for 40 years would with employer match accrue $60k paid plus interest around $30k, total around $90k. At $1k/mo payout this category would consume their life savings in 85-95 mos or 7 to 8 years. This group needs to be subsidized by folks their work enriched more than it enriched themselves.

Ceiling? Assuming a pay-in stops at somewhere around a million in income from all sources, 40 years of paying $50k/a plus a 0.025 match and interest would total about $3.375kk. Pulling it out at $10k/mo would take 28 years. Given that large numbers of these folks could live that long, payout would need to be about half that, or $5k/mo to subsidize lower income payouts.

Retirement age would need to be around 70 for this to work and that is only if children and other free riders who don't pay in don't get into the system. But this kind of system is definitely do-able.

 

[Politico]

Social Security is a Ponzi scheme. It can't be saved. The end can only be extended.

In that sense, society itself is a Ponzi scheme.

Yes it is. Glad you understand.

 

[editec]

Social Security is a Ponzi scheme. It can't be saved. The end can only be extended.

In that sense, society itself is a Ponzi scheme.

Yes it is. Glad you understand.

Now all we need do is get others here to understand this basic tenet upon which every other issue facing our and every other society exists.

Perhaps if we use the more business-like term : GOING CONCERN, they'd get the concept?

Few have gotten it so far.

Why do you suppose that is?

 

[Skull Pilot]

It's time to save people from the forced poverty of Social Security.

Let them save their money in accounts they own. And get the fucking government out of the picture.

People will retire richer and actually be able to leave money to their families.

 

[Dugdale_Jukes]

It's time to save people from the forced poverty of Social Security.

Let them save their money in accounts they own. And get the fucking government out of the picture.

People will retire richer and actually be able to leave money to their families.

Can you put a little bread around that baloney?

 

[Skull Pilot]

It's time to save people from the forced poverty of Social Security.

Let them save their money in accounts they own. And get the fucking government out of the picture.

People will retire richer and actually be able to leave money to their families.

Can you put a little bread around that baloney?

If a person saved the 15% of their lifetime income they would have more money on which to retire.

I've done this before many times but you sheep won't listen.

If we say that a person makes the median income of the US of about 43K a year.

Now If you want to start whining that no one makes that when they are young stop now.

I am going to assume that a person makes this amount for his entire career. That should even things out enough for the purposes of this illustration.

The current FICA taxes are 7.65% from employees and the same from employers for a total of 15.3%

15.3% of 43k is 6579 a year or 548.25 a month.

If one saves 548.25 a month for 45 years (age 22 to age 67) and gets average return of

5% he would have $1,111,003.69 that would provide an income of 4000 a month for nearly 40 years. The maximum SS income is 2500 a month and our person would not be getting close to that.