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Financial Planning / Social Security Reform


Subject:  Re: Social Security and US Debt Date:  1/3/2013  10:11 PM
Author:  PuddinHead42 Number:  5263 of 5268

Nice thread, let me reply to some multiple posts.

First, as Obama says, the math just doesn't add up. There are problems.

SS is a pay-as-you go system, which is not a pyramid scheme, but not far from it either. You do depend on the kindness of strangers. People think they have "saved" into the system, but really they paid for their parents and grandparents and now retirees must rely on their children and grandchildren.

There is a surplus now, but we know it will end and then the big trouble starts. We are retiring 10,000 people a day. That is 300,000 a month. So until you see employment increasing by 300,000 a month, you know the "pyramid" is inverted and we are draining money.

There is no "lock box", and won't be. Only if you "owned" your contribution and could invest it like a 401k, would you keep the government from borrowing and spending it. It takes the cash and gives the fund 30 year bonds, which are now yielding squat. The fed is printing money and will pay the fund back with inflated dollars (that are worth less while your cost of living has increased).

There are plenty of fair solutions and everyone must share in the pain. Rem