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URL:  http://boards.fool.com/if-social-security-is-taken-away-even-from-26739092.aspx

Subject:  Re: Obama on payroll tax Date:  6/17/2008  12:02 PM
Author:  fleg9bo Number:  13468 of 19378

If Social Security is taken away -- even from those of us who have managed to save and invest -- we may not be able to stay afloat. Those who don't stay afloat will end up on some other government program. Why not allow us to keep what we have worked for for so many long years -- and which allows us to live with dignity -- instead of forcing us to rapidly spend down all else we have managed to save until we end up on true welfare?

I can agree with this sentiment--we've paid in, we should get back (even though we're not legally entitled, it all being a whim of Congress). Another way to think of it is as a big tax hike--only instead of having to send in bigger tax payments each quarter, you don't receive some income you were counting on. Same effect on the bottom line.

When I started planning our early retirements (me at age 53), I figured on there being no SS at all, thus our safe withdrawl would have to be entirely from the portfolio. I was planning either on not taking it until we were older or using it for extra vacations or something. Now we're "depending" on receiving SS at 62 to mitigate the effects of the loss of the Bush tax cuts in 2010. We'll survive without it but the higher taxes will push us closer to or over the 4% withdrawl level (unless we scale back our expenditures, hurting the lower-income people in the community we spend it on), so having it will make things less risky going forward.

--fleg
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