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Originally Posted By Procat: Can't speak to the particulars of RRR but the host asked a decent question and the senator didn't answer. Not addressing the pitfall of potential future funding shortfalls just sets us up to continue to have to overhaul SS every 40-50 years. Ironically the original legislation says how to handle insolvency. Originally Posted By Procat: Originally Posted By FMJ3: I believe that is only for Tier 2 RRR? Tier 1 is basically SS and would probably get the same haircuts or increases (except maybe age). Tier 2 is also roughly an extra 4% from the employee and 12% from the employer, but the pay cap is a little lower than the SS (Tier 1) cap. Can't speak to the particulars of RRR but the host asked a decent question and the senator didn't answer. Not addressing the pitfall of potential future funding shortfalls just sets us up to continue to have to overhaul SS every 40-50 years. Ironically the original legislation says how to handle insolvency. The answer (which he didn't know like most) is RR Tier 2 works because it pays out at a less generous rate than SS. If SS paid that little more people would be willing to dump it - especially at the lower end where the ratio to pay in vs pay out is way more generous. |
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Originally Posted By ColtRifle: So you have nothing to contribute. Kindly see yourself out and go find threads you are interested in. Thank you. Originally Posted By ColtRifle: Originally Posted By networkguru: Whats there to discuss? You already said there is nothing we can do to change anything and its all gonna suck. So its just a bitchfest or concern trolling? So you have nothing to contribute. Kindly see yourself out and go find threads you are interested in. Thank you. Yep, thought so. Flex away bro |
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Originally Posted By Procat: Cassidy’s sovereign wealth fund style fix is intriguing but as also dependent on perpetual growth which is the fatal flaw of social security to begin with. Erin called him out on the railroad retirement comparison and he didn’t answer her (employee and employer both contribute but employer has to pay for any shortfalls). The more sales pitches I hear for potential SS fixes the more I think letting insolvency play out might be the most painless option. The fund idea is intriguing but it does bother me that it would be initially created by more deficit spending. The biggest issue with SS is it’s a pay as you go vs invested. Well, technically it’s invested in T bills ( basically) but the returns are poor. Modern pensions are invested in the market and if funded properly (that’s the usual issue) do just fine. If SS funds were invested in the market, we wouldn’t have the same insolvency issues. It would do some interesting things with the stock market though! |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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Originally Posted By spmx7777: A sovereign wealth fund style fix would mean the federal government would own a significant piece of private corporations. When progressive communists get a hold of social security sovereign wealth fund, I'm sure they will only do what's in the best interest of the shareholders. Pffft. No thanks. The current system has isn’t sustainable because it’s not properly invested. I’d much rather have SS funds somehow invested properly than a pay as you go system. The right way to fix it would be to share the pain around. But, the lack of financial planning for most old people means any cuts are political suicide. The young people today are no better and they will be screaming for theirs despite the fact they don’t want to pay for it today because they, like their elders, didn’t plan financially either. That’s why I have planned to do without SS. I don’t really care what they do with it. I have planned so that I do not have to ever rely on it. I’ve paid into it so I’ll claim it when I get there but it’s just bonus money for me. I’ve never planned for it as an important part of my retirement funding. I do find it interesting to see what they come up with though. |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt
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Originally Posted By ColtRifle: The current system has isn’t sustainable because it’s not properly invested. I’d much rather have SS funds somehow invested properly than a pay as you go system. The right way to fix it would be to share the pain around. But, the lack of financial planning for most old people means any cuts are political suicide. The young people today are no better and they will be screaming for theirs despite the fact they don’t want to pay for it today because they, like their elders, didn’t plan financially either. That’s why I have planned to do without SS. I don’t really care what they do with it. I have planned so that I do not have to ever rely on it. I’ve paid into it so I’ll claim it when I get there but it’s just bonus money for me. I’ve never planned for it as an important part of my retirement funding. I do find it interesting to see what they come up with though. We’re in exactly the same situation for the same reason. If SS went away entirely, we’d still be fine. Our heirs would get a smaller inheritance but they’ll be fine too. |
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Originally Posted By spmx7777: We’re in exactly the same situation for the same reason. If SS went away entirely, we’d still be fine. Our heirs would get a smaller inheritance but they’ll be fine too. Smart. Funny thing is…..the Social Security Administration has been telling Americans not to rely 100% on SS for YEARS. And still most Americans are planning to primarily rely on SS for most or all of their retirement funding. I have several family members in that boat. So stupid. I decided a long time ago that I would never count on it as essential retirement funding. It’s very freeing to not worry about what happens with it. |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt