willbeurdaddy
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Joined: 4/8/2006
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quote:
ORIGINAL: lockedaway
quote:
ORIGINAL: Marini
We would ALL be so much better off, if we did not have Social Security and all of our futures for retirement were in the stock market!!!
I don't know where you are going with that post at all. Social Security is money YOU paid in and was supposed to be safeguarded and paid back to you. I don't think there is anyone on this board that doesn't believe that the social security fund wasn't fucked over and perverted and that it should have been left alone.
But you think you are going to retire on social security???? Really? Does anyone know what the maximum is you can receive on Social Security? I may be wrong but I thought it was $2,000.00. If you think you are going to retire ANYWHERE in the U.S. on $2,000.00 per month, you are far more than just idealistic. Oh sure...maybe if you have a 800 sq. ft place out around.....say.....Lukenbach, Tx. God help you if you need to get to a hospital, however.
For anyone in their early 40's....by the way.....don't expect to receive social security until you are in your mid 70's. I hope that doesn't come as a surprise to anyone.
Other than being used as a political football I dont believe that SS was fucked over or perverted. It has been run remarkably well for a government agency. And for anyone in their early 40s, if they EVER expected to retire in their mid or even late sixties, it wasnt from what SS would pay. In 20 years life expectancy for someone in their 40s today and surviving till their mid 60s will be well in to their 90s. Expecting to live as long without working as they worked in their most productive years can't happen.
Also with the boomers gone there will be tremendous demand for workers and the pay for those who are actually working and not just "retired in place" will keep increasing far more than today, where its basically cost of living increases.
I think Marini was being sarcastic about investing SS in the stock market. HORRIBLE idea, probably the worst position that GWB ever took. If the investing is done by the individual they are bound to fuck it up. People overall are terrible investors. If its done by the SSA the investment board would become the most powerful body in the world. The social engineering possibilities of their asset allocation policies is enormous. (OF course this would have been a bigger problem in the past when surplus were larger, but in 25 years or so the surplus will be rebuilidng and will become a major issues again). You also have the problem of inflation in the stock market itself. When you have all of that additional money chasing the same GDP producers, the boom and bust cycles would be amplified.
Then there is the problem of who bears the risk. If you have a 30% market drop that directly impacts the safety net retirement program you know they will be bailed out. That passes the risk onto future generations of taxpayers. This is a bit math dense but is a good intro to the risk transfer issue if youre really a pension policy wonk:
http://users.erols.com/jeremygold/prc/pprisktransfer.pdf
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and harken
to the barking of the dogfox,
gone to ground.
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