I agree.
Pretending Social Security is an annuity and calculating a base for it???
- Thread starter LostDollar
- Start date
Deborah Armstrong
Expert
- 83
Let me explain why I said it is more like a Ponzi Scheme.
Charles Ponzi used new investors' money to pay older investors. Younger workers paying Social Security tax known as FICA is used to pay recipients of Social Security.
The boomer generation outnumbers other generations. We are in a conundrum and social security is at risk. Younger generations are concerned that they will not see Social Security benefits by the time they retire and they are paying into a system they may not ever receive.
Social Security is set to run out by 2035. How would you feel if you invested in a system that promised to pay you when you retire and you never received anything from that investment? That is what Charles Ponzi promised and that is what Social Security promised.
- Thread starter
- #13
- 6,480
- 2,634
One is either a fool or a troll to make that kind of statement.
The fallacy in your argument is that the government will eventually inject funds into Social Security to fulfill that promise, just like it pumps money into everything else when there is a crisis.
tikibarrister
Guru
- 473
For at least the last 50 years, Social Security has always been "set to run out in 20 years".
I know because that's as far back as I can remember hearing that.
Benefit age should be drastically increased.
The can can only be kicked down the road for so long and unfortunately the people making these decisions aren't going to even be around to see the consequences.
The can can only be kicked down the road for so long and unfortunately the people making these decisions aren't going to even be around to see the consequences.
- 2,216
They'll either steal more or print more. SS ain't going nowhere.
Me too. At least 50 and maybe more.
When that happens they'll just go out and get a new can.
Then you need to speed it up and catch up to us old farts. Your money is right here waiting for you.
PrivClientSG
Guru
- 325
First, I promised myself I wouldn't respond to such foolishness, but I decided to break my promise to myself. Second, the people who sell fear and panic in and around Social Security are either fools, uninformed, or simply using fear and panic to further or solidify some self-serving position. Third, Social Security is not set to "run out" by 2035 -- the current allocation funding will be unfunded by 2035, if and only if the Government went to sleep, made no changes between now and 2035, and never added another dollar to the current funding allocation. Fourth, Social Security has not "promised" what Charles Ponzi proved. The United States Government and Social Security have not claimed they will not pay people. Not at all. Thank you.
PrivClientSG
Guru
- 325
That's true. It's been a "rolling" approximate 20 years since the early to mid 70's.
PrivClientSG
Guru
- 325
For me, I would not count it as "an asset" or as a "capital pool" -- as there is no lump sum accessibility, and it "disappears" at death (so to speak, excluding a spousal step up or continuation). As an annuity, vis a vis the income -- I would certainly count it -- and I would count it as a "guaranteed" income. If need be, I would say it's origin is a "fixed income" source and attach the percentage of income to it, however, I wouldn't allow that to give me permission to alter my asset allocation, simply because I had this "fixed income" asset class. You don't. You have an income stream -- not an asset class.
The taxability is going to be case by case.
