Social Security reform

If you are a high income individual, my recommendation is to employ the services of a well qualified tax accountant.

Technically only half of your SS benefits are taxed. Specifically the half paid by your employer. Originally Posted by westwardho

Unless you were self employed.

High income individuals should probably employ the services of a well qualified tax accountant.

Well aware Vita, I have had my own company since 1985. Still doesn't alter what I said above.

You can call Social Security whatever you want but my wife and I pull in over $80,000 a year from it. I agree that if my company and I had been able to invest the same amount of money in a 401k I would have more money if invested wisely, but how many of us would have done that in our 20s and 30s if it was optional?

In my opinion Social Security is the best programs ever introduced by our government. Many people would be penniless without it. It has it flaws but I can live with those flaws. And Medicare is a close second in its importance to seniors. Originally Posted by SpeedRacerXXX

+1

Good post SpeedRacer. Since the birthrate has declined in the USA, they will need to tweak the original formula. SS is predicted to run out of money by 2035 if there are no changes.

Technically only half of your SS benefits are taxed. Specifically the half paid by your employer. Originally Posted by westwardho

Intuitively that makes sense to me. You can view the employer's payment as a tax and the employee's as a contribution to his retirement. That said, I got into an argument here with Texas Contrarian, which I lost, who I believe said the employee directly and indirectly bears the cost of both the employer and employee contributions. Maybe he'll comment when he comes back from ban land.

Since you're new, I'll mention you shouldn't argue economics with Texas Contrarian, or Lusty Lad. You'll lose.

They are both banned.


You can always make assumptions about indirect costs. This assumption may pertain to what the employer is willing to pay you and figure SS into their calculations.

I didn’t start drawing my SS until 70 years old to draw my SS. At this time, I get $5100 a month, of which they take out 23%.
I am not self employed. I work for a corporation, which I own 40% of.

"The maximum Social Security benefit you can receive in 2024 ranges from $2,710 to $4,873 per month, depending on the age you retire. Maximum benefits can be received by delaying the start of benefits until age 70"

It should be understood that SS, in it's concept, is welfare for the elderly. The first wave of recipients contributed relatively little before benefitting. It is, and always has been current workers funding payments to current retirees through taxes. There is no "retirement account" payable to an individual based on their past contributions, so "it had been invested elsewhere" arguments are moot...that is not the design of the system...arguably, it is opposite the design, since many didn't or couldn't save as a result of the depression era and were in dire circumstances. Safety net still essential for many today.

That said, it is a welfare program subject to how much the current contributors are willing to "donate" to current recipients, bearing in mind their hope to reap a similar largess in their golden years.

"a contract between the generations"

You can call Social Security whatever you want but my wife and I pull in over $80,000 a year from it. I agree that if my company and I had been able to invest the same amount of money in a 401k I would have more money if invested wisely, but how many of us would have done that in our 20s and 30s if it was optional?

In my opinion Social Security is the best programs ever introduced by our government. Many people would be penniless without it. It has it flaws but I can live with those flaws. And Medicare is a close second in its importance to seniors. Originally Posted by SpeedRacerXXX

A ridiculous comment, when 88 Senators voted for it. Every one of your posts attacks Biden, without any thought behind the post. Originally Posted by VitaMan

Biden hasn't done anything right in the last 3 years.

Biden hasn't done anything right in the last 3 years. Originally Posted by farmstud60

... But I do reckon that President Biden WILL do something
on Social Security reform.

The illegals crossing the border might be eligible
for payments next year! ...

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I agree. Both SS and Medicare are in trouble. An I too am far from an expert on this subject but I do know that most countries are far more socialistic when it comes to SS and healthcare.

As an aside, I head to Australia tomorrow night. I plan to come back with a Snowy River hat. Originally Posted by SpeedRacerXXX

... I surely agree with Speed - that from the looks of
everything it does seem that both programmes may be
in trouble - but some common-sense reform might just
fix the problem.

Hope Speed remembers me football jersey along with his hat.

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