Social Security, the easy way to fix it...

You're wrong. Live your life that way. See if I care.

 

Again, read the trustee reports. Despite their Enron accounting, the system is unsustainable and going to become an unfair burden on future Americans.

 

That is a change of our subject. I take it you concede that the TF has real value. Good.

Regarding the demise of SS and the Trustees' report, the report doesn't mean all is hopeless. It assumes in its projection that all laws will remain as they are and all facts will function as predicted in order to assess where it is all going given conditions as they are. But there is much that can be done to change the trajectory in ten years.

Regarding private accounts, you don't understand diversity and the importance of fixed assets.

 

FICA income can be fixed in three seconds; just change the withholding amounts to balance the FICA account each month. The ONLY reason the system does not currently bring in equal to what it pays out is our Congress and presidents non-performance on solving these types of issues.

It's not a slush fund for anyone?? They are excess FICA monies and since the government cannot hold trillion$ in cash the SS bond program works quite well. What does not work is Congress and presidents not withholding the correct amounts of FICA.

The SS bonds are not worthless? They are redeemable on demand bonds and the system works quite well...

 

The SS TF is not an IOU? If you personally buy bonds or stocks, all of them are an asset at today's value, and should never be considered an IOU?

The fact that Congress and presidents place these excess FICA monies in the general fund, to spend them in anyway they want, including selling US treasuries in order to help fund the government, is a system that works quite well.

The root of this IMO is that a government cannot simply have trillion$ in cash sitting around doing nothing...

 

Grasp what you are saying. You are saying it is ok for congress to tax one generation more than another. Why is it that the solution is always the next generation paying more?

 

Why is it ok for the elite to have vast sums of money, but the average guy cannot? A private system truly benefits everyone. The current system is unfair and unsustainable.

 

It's not about what I'm saying? In decades no one, not even you, has come up with a better system to provide Americans with some financial security in retirement. It is almost impossible to end the current program and start another program and certainly when in parallel. Trump claims healthcare is more complex than 'anyone' imagined but repealing and replacing SS would be complex on steroids, requiring enormous funding, and forcing change which no one likes.

Instead of being self-serving about who pays FICA why not look at it from the perspective that as an American this is part of the price we pay to help others and ultimately help ourselves? I paid FICA my entire career and never gave it a thought so what's the big deal today?

Regarding the 'next generation paying more' news flash...everything will always cost more!

 

How much money people in the private sector have cannot be compared to the government?? Another news flash; there is NOTHING preventing you from having vast sums of money...every person has this potential.

There is nothing that says a private system will benefit everyone?

The current system has worked quite well and continue to work. Just like Obamacare instead of tossing it out fix it...same with SS...fix it!!

 

This is all nonsense. While I'm not prohibited from investing, many Americans having 12.3% of their discretionary funds does seriously inhibit their growing personal wealth.
You are contradicting yourself. First I'm not prevented from having vast sums of money, yet Americans investing the 12.3% confiscated for SS does not benefit them?
The current system works because the government has guns and raises employment taxes, which you think they should continue to do, which further inhibits Americans from personal investment causing the government dependency already evident.

Fixing it is mandated privatization.

 

This system will either be fixed responsibly or by crashing. SS is nothing more than the state pension model on steroids. Take a look how well they are doing. The pension model will fail and is why private companies abandoned them decades ago.

 

Americans only pay 1/2 of the 12.3% you state...the employer pays the other 1/2.

There is NOTHING keeping anyone from saving/investing some percentage of their income! Except people's inability to prioritize their spending and plan for the future.

If we assume today's median wage of $35K, just a stinking 1% of this is $350/year, over 40 years this amounts to $14,000 cash investment...at 3% compound interest this is about $28,300. All of this for just $6.75 per week yet how many will do this?

Once again, using the median income of $35K, 6.2% of this is $2170 per year. Yet today SS recipients on average receive about $1000/month or $12,000/year. Please explain how spending $2170 per year to receive $12,000 per year is not beneficial?

 

No, the employer contribution is part of the employees compensation. As an employer, if the government were to switch to a private system, I would still contribute the same to the private institution.

Try telling this to the many who survive on lower incomes. Over the 12.3% is tough to find.

If you know anything about investing you know that compounding provides greater outcomes overtime. The outcome is much better on private investing than a government failing ponzi.

 

Like I said, people fail to prioritize or plan better and therefore most people won't save the $6.75 each week. People on lower incomes can save $1/week or $3/week or $6.75/week...saving $0 is a dereliction of one's financial duty.

In a perfect world (which does not exist) IF every single American could save the appropriate amounts of cash in private accounts, and do so during their entire working ages to retirement, there would probably be more cash available at retirement. And assuming this imaginary perfect world, with trillion$ invested in bonds and equities and cash, I cannot fathom how this can be managed or secured and certainly not guaranteed!

The employers FICA contribution is not the employees compensation??

The FICA tax rate for employers is 7.65%—6.2% for OASDI and 1.45% for HI.

For 2016, an employee will pay:
a. 6.2% Social Security tax on the first $118,500 of wages (maximum tax is $7,347.00 [6.2% of $118,500]), plus
b. 1.45% Medicare tax on the first $200,000 of wages ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return), plus
c. 2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all wages in excess of $200,000 ($250,000 for joint returns; $125,000 for married taxpayers filing a separate return). (Code Sec. 3101(b)(2)

 

Most people don't save because they have been dumbed down into government dependency. Go research the savings rate in china, where people are personally responsible for their retirement.

 

Just excuses...everyone knows how to save...few will save...

 

This is nonsense. People are less motivated and capable due to government intrusion. This is why I promote a middle ground solution. It allows Americans to build personal wealth that is greater and that can be passed to heirs if they die early. Additionally, it gets the government hands off the money and creating unfair tax rates for future Americans.

 

Maat, what is the "1,2,3" order for safety of value, 1)common stocks, 2)Treasury securities, and 3)corporate bonds? Put them in their correct order from highest safety to lowest if you can.

 

Spend a few dollars and a little time over the next 2 months and get yourself a Series 6 securities license like I did. You will have a very different and informed opinion on all this.

 

231, Which does not matter. You can't really use securities as the measuring stick when the government abuses spending causing themselves to raise tax rates to make up for it. Securities(not a growth investment)are not the problem, Ponzi schemes are.

 

My neighbor does quite well for his clients.

 

"Ponzi schemes" or not, neither that nor spending has any effect on the safety of Treasuries, and you just admitted they are the safest, so the SS TF value is real and safe. We agree on that.

 

More excuses? When I was 5 years old I was given a piggy bank to save coins...this is not rocket science! Please provide a link to a reputable articles that says people should spend every penny and not worry about saving?

 

It doesn't matter because private investments can include securities. And, let's be honest, treasuries are just promises to pay. The real issue here, as with most pensions/ponzis, is the promises, the ability to pay them and the enslavement of those who will be forced to pay more than their share. The boomers will expose this problem eventually.

 

Don't be silly, you think the government is going to advertise its unintended consequences of tampering in individuals financial matters?

This ain't rocket science. Taking 12.3% of ones discretionary income is a big deal to many Americans. Likely the ones reaching 65 with less than 10k in savings. That money conservatively invested would make for better retirements and nest eggs to heirs. In addition, it would add no burden of debt to future Americans. This is how you spread the wealth and have Americans truly invested in their country.