BoatBanter.com - View Single Post - 7 Habits of Highly Frugal People, or How to Get the Boat You Always Wanted

Canuck57[_9_]

On 24/04/2011 12:22 PM, wrote:
On Sun, 24 Apr 2011 09:01:18 -0600,
wrote:

Hey, if I put $1000 into SS...it generates say 1% interest in a 3%
inflationary environment...the value of the money falls 2% every year.
Add that up with something the size of SS well....it is big.

SS is a great bargain for anyone who lives long enough to collect for
more than 8-10 years, even at the age 62 rate.
Unfortunately that is why it is going broke.
I paid in about $100k (both sides) and I will use that up before I am
68, starting at age 63.5.

Yes, but did they pay interest on the moneys you contributed decades ago?

I am supposed to live another 12 years after that.

Now give government health care and watch them ration seniors so they
can die earlier.

Medicare is even a bigger hit for the government.
I paid in less than $25,000 (both sides) and statistically I am
supposed to spend about $250k before I die (the average Medicare cost
per patient)

Again, make that calculation with interest.

But agree on your points in that work for 10 years to get the points
then no contribute gets you a full load of benefits.

Some day if I get that bored, I will work up a spread sheet of my FICA
taxes vs the expected pay out to see what the effective interest rate
really is. The problem is not really that you are not getting enough
return on your money, it is that the money was really never invested
in anything that gained value. The government ****ed it away on stupid
wars, pork and bailouts.

Yep. That is what really happened. If you put in $500 say 3 decades
ago, got a fair 5% annual average return, today that is $2161.

By borrowing at effectively 0% interest rate in a 3%+ inflation
environment, the exact opposite happens. The savings depreciate. So in
fact, government is deliberately depreciating pensions.

Add in they are making it worse with ponzi fiat no-value money creation
for debt-fraud, well, that just makes it worse.

Yep, government borrowed it at near zero rates and will maybe, if you
believe them, pay it back with lower value future dollars.

A real scam in reality. Shafting the average worker with what is really
an employment tax.

Best way to ix it is have all SS (CPP in Canada) go to a non-refundable
IRA type deal for both the employee and employers part. Did you include
your employers part in your calculations?

After say 40 years of working, all the employee and employer SS/CPP
parts in a private fund at a modest 5% would likely fund a pension much
larger than your getting now.

--
I can assure you that the road to prosperity is not paved with
fleabagger debt.