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Author: kaching Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76095  
Subject: Social Security Date: 10/23/1997 1:17 PM
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Two questions and some editorial...

1. Is it true that when my wife and I retire we will only get one social security check, based on the highest wage earner? Don't we both get back all the money we paid into the system (in theory)?

2. Why not do away with the social security system as we know it and instead have mandatory self directed retirement accounts? Instead of paying to SS, we pay the same amount to a self directed investment account. Isn't the government supposedly trying to help us help ourselves with the whole SS system??? I think they are helping themselves!

I hearby call for all Fools to write Congress! Let's do away with the Social Security system as we know it!!!

-MikeC
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 512 of 76095
Subject: Re: Social Security Date: 10/23/1997 1:59 PM
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Greetings, MikeC, and welcom to Fooldom.

<<1. Is it true that when my wife and I retire we will only get one social security check, based on the highest wage earner? Don't we both get back all the money we paid into the system (in theory)?

2. Why not do away with the social security system as we know it and instead have mandatory self directed retirement accounts? Instead of paying to SS, we pay the same amount to a self directed investment account. Isn't the government supposedly trying to help us help ourselves with the whole SS system??? I think they are helping themselves!>>

Gee... I take it you don't like Social Security.

No, it is definitely NOT true that when you retire you and your spouse will get only one check based on the highest earner's work record. If both of you worked and paid into the system at least 40 quarters (10 years), then you will BOTH receive a check based on your own work record. If both of you retire at age 65+ to receive a 100% benefit AND the lower earner's benefit is not at least 50 % of the highest earner's benefit, then the lower earner will get additional money to bring that check up to at least half of what the higher earner gets.

Whether we should make radical changes or do away with the system entirely is a political matter. Valid arguments for and against various stances can be made, and they are far beyond the scope of this folder. But prior to making sweeping statements damning the whole concept, perhaps you might be better served by learning a little bit about the subject first. To that end, I highly recommend you point your browser to http://www.ssa.gov and do a little reading. Who knows? You may just learn that your FICA doesn't just go towards a check you get in your old age, but instead encompasses a whole range of programs for the workforce of which retirement is but one.

Regards......Pixy

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Author: JeanDavid Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 524 of 76095
Subject: Re: Social Security Date: 10/24/1997 7:48 PM
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<Why not do away with the social security system as we know it and instead have mandatory self directed retirement accounts? Instead of paying to SS, we pay the same amount to a self directed investment account. Isn't the government supposedly trying to help us help ourselves with the whole SS system?>

One trouble with having everyone in a self-directed retirement account is that some will invest poorly and end up with an insufficient retirement. Some will earn so little that they CANNOT contribute a sufficient (if anything) amount to such a plan. I do not know if filing for bankruptcy will cause you to lose the contents of your IRA (I suppose someone does), but it would be to bad to lose your entire retirement account because of that. So the government will, in fact, have to help them even if they lost all their retirement money. (Would you want your mother to starve when she worked for 50 years with a self-directed plan and retired in November 1929? She would have had to wait until the mid 1950's or so to get her money back and she might not have lived that long. What would she eat in the meantime? Where would she live? What would she wear?)


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Author: oneplez Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 527 of 76095
Subject: Re: Social Security Date: 10/24/1997 11:53 PM
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Amen!

Have you read about the latest stupidies being perpetrated on 401k's by their owners?

The story was in the WSJ and shown on Brokaw's news show. People are pulling funds out of 401k's as 'loans' and buying goodies like boats, trampolines, vacations and etc. When asked about their retirement future, one of the bozo's said she didn't have time to worry about the future or the future is now! For all the reason's you cited and the above I'm against privatizing SS.

But, as congress made up its mind that the COLA was being overstated, because a group of truth-challenged economists said so, and reduced the COLA. So now they are being told that SS privatization is good, because a group of truth-challenged accountants and brokers are telling them that, that is so, they will probably privatize SS. Then, what happens to those mentally challenged bozos whose future is now? Why congress will be told by a group of truth-challenged liberals that we must provide a governement Social Security program similar to that developed in the 1930's, for them!

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