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Message
re: Social Security - Help me understand better
Posted on 2/9/23 at 12:47 pm to Auburn1968
Posted on 2/9/23 at 12:47 pm to Auburn1968
quote:
$1000 invested in the stock market 40 years ago would be about $36,000 today at the market's average growth rate of 9%.
$1000 invested in the SS "Trust Fund" 40 years ago comes out to about $2,200 at the "Trust Fund" interest rate of about 2%. Inflation has averaged about 4% over the last 40 years.
$1000 invested in a specific investment 40 years ago may have increased in value much more significantly than the market's average. A person could have taken that same $1000 to a craps table and with some luck made way more than it would have made in market average. Social security was never meant to be an individual retirement account. It was meant to be provide some dignity for the elderly, the disabled and the orphaned, many of whom never had $1000 to invest but will be on the dole or otherwise a problem for the rest of us without some basic income. We could just shoot them, I guess, or otherwise just leave them to their own devices but about 80% of Americans think SS is preferable to either choice...only the hateful and greedy gripe about it.
Posted on 2/9/23 at 12:56 pm to AwgustaDawg
quote:
I guess, or otherwise just leave them to their own devices but about 80% of Americans think SS is preferable to either choice...only the hateful and greedy gripe about it.
Bullshat. People with a brain gripe about SS because they know there is a better alternative.
The country would do well to teach EVERYONE about compound interest and how it works at the high school. Simple math. Drill it into their heads.
This goes back to the "give a man a fish and feed him for a day" _"teach him how to fish, feed him for life."
This post was edited on 2/9/23 at 12:59 pm
Posted on 2/9/23 at 2:10 pm to AwgustaDawg
quote:Dude
...only the hateful and greedy gripe about it.
I can assure you I'm neither hateful or greedy. But I'll damn well gripe about any mandatory program run as inefficiently as SS.
e.g., Warren Buffett and Charlie Munger have received SS checks for years. When I eventually qualify for SS, I'll fall their highest benefits tranche, and won't need a penny of it.
OTOH, working class employees have their income garnered for years only to have it returned (maybe) at an inflation-adjusted ROI loss 40yrs later. Federal payroll tax withholding is a big deal for folks on a budget. At least the damn payout at the other end could make it worthwhile.
Adding insult to injury, life expectancy for various working class groups may run as much as 10yrs shorter than for wealthier demographics. Yet, there is no transference of benefit or money for early death or underutilized "benefits." Does that piss me off? Yeah, it kind of does. It should probably piss you off as well, even if you're not hateful and greedy.
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