Tough choices necessary

[Linda]

They still have to pay in - for a variety of reasons.

Opting out sounds good - until people poorly invest or the market tanks or their pension falls through or someone dies or there is a health issue or something else happens and they then need that income. I want it to still be a fallback option for them if it is needed.

I think a lot of people would be willing to give up their benefits if they had the means to do so and if so, I want them get rewarded somehow.

Social Security is only supposed to be a portion of your overall planned retirement income anyway. I think it is 25%? I pay SS though I don't realistically think I will get much out of it as a healthy working person of my age - but fate often has other plans.

I would not be willing to give up what I had accumulated if I was still going to be forced to pay in. That, imo, is nothing but wealth distribution.

 

[scooterbug44]

But when you are contributing to it and when you are getting money (or not) from it are two different time periods.

IMO better to contribute and then not need it than to opt out, need it, and have it unavailable.

 

[Andy A]

I may be misreading Margarita but I think she is saying she would forego SS payments for the use of tax credits for the money due her. I could accept that as well. I just finished my yearly tax return and the results as to what I paid and owed was stunning. Two people, no dependents, no write offs or deductions except standard and you are really whomped up along side of the head. Some could forego SS and would for something in return but others cannot. What I really want is to see less of my money wasted on frivolous project such as underground turtle crossings on Interstate highways and such.

 

[scooterbug44]

Welcome to my world - and I doubt I'll see a dime of that money I am paying into SS.

I thought she was saying that she wanted to stop paying into SS now (pre-retirement at 51). I like the idea of being able to opt out and get credits etc., but am concerned as to what will happen if people opt out and then NEED Social Security.

I am basing that on the current craptastic job many are doing saving for retirement, accumulating debt, paying their mortgages, getting health and long term care insurance etc.

 

[Linda]

I may be misreading Margarita but I think she is saying she would forego SS payments for the use of tax credits for the money due her. I could accept that as well. I just finished my yearly tax return and the results as to what I paid and owed was stunning. Two people, no dependents, no write offs or deductions except standard and you are really whomped up along side of the head. Some could forego SS and would for something in return but others cannot. What I really want is to see less of my money wasted on frivolous project such as underground turtle crossings on Interstate highways and such.

I would completely walk away right now from the money that I have put into Social Security (with or without a tax credit) but from this point forward want to opt out and invest future SS money into a private account.

 

[Matt J]

I would completely walk away right now from the money that I have put into Social Security (with or without a tax credit) but from this point forward want to opt out and invest future SS money into a private account.

Just think if you had that option 2-3 years ago?

 

[Linda]

Just think if you had that option 2-3 years ago?

I could have done a lot better than the government

 

[Matt J]

I could have done a lot better than the government

I don't remember the SSA panicking when the stock market bottomed out. The point is that while you may possess the investment skills necessary to avoid financial calamity the average person does not. Hence the reason SS was set up in the first place.

 

[30ashopper]

I don't remember the SSA panicking when the stock market bottomed out. The point is that while you may possess the investment skills necessary to avoid financial calamity the average person does not. Hence the reason SS was set up in the first place.

Why would they, they don't have any money to invest, the politicians spent it all.

 

[Linda]

I don't remember the SSA panicking when the stock market bottomed out. The point is that while you may possess the investment skills necessary to avoid financial calamity the average person does not. Hence the reason SS was set up in the first place.

This is how Social Security was set up in the first place.

Franklin Delano. Roosevelt (Terms of Office March 4, 1933, to April 12, 1945), a Democrat, introduced the Social Security (FICA) Program. He promised:

1.) That participation in the Program would be completely voluntary,

2.) That the participants would only have to pay 1% of the first $1,400 of their annual Incomes into the Program,

3.) That the money the participants elected to put Into the Program would be deductible from their income for tax purposes each year,

4.) That the money the participants put into the Independent ?Trust Fund? rather than into the General operating fund, and therefore, would Only be used to fund the Social Security Retirement Program, and no other Government program, and

5.) That the annuity payments to the retirees would never be taxed as income.