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In case you wanted to do a little financial planning,
Posted on: October 26, 2016 at 20:11:15 CT
GA Tiger MU
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this might be relevant to you. Oh, in the meantime be sure to vote for, and RE-elect, people who want to raise spending and taxes. That oughta work for you.
But there is no cash in the Social Security trust fund. There never has been.
Here’s the best description of the “trust fund” scheme by David C. John of The Heritage Foundation:
“In short, the Social Security trust fund is really only an accounting mechanism. The trust fund shows how much the government has borrowed from Social Security, but it does not provide any way to finance future benefits. The money to repay the IOUs will have to come from taxes that are being used today to pay for other government programs.
For that reason, the most important date for Social Security is 2018, when taxpayers must begin to repay the IOUs, not 2042, when the trust fund is exhausted.”
The bottom line is there’s no chance that the government is going to be able to honor its existing Social Security commitments without radically raising taxes or drastically reducing benefits… and soon.
The most likely outcome is a combination of both.
The End of Retirement?
Here’s the harsh truth…
If you’re in your 60s, you’re looking at a reduction in Social Security benefits.
If you’re in your 40s or 50s, you’re looking at big benefits cuts and much higher taxes.
If you’re younger than that, well, who’s kidding who, you won’t get anything.
Look, Social Security’s reckoning day is coming no matter the carping and whining. The math no longer works…
The program pays out roughly $70 billion more than it takes in each year. And that shortfall is only going to get worse as more baby boomers retire.
If you think politicians will somehow magically fix Social Security without benefit cuts and tax increases, you’re living in a fantasyland.
Those charlatans still out there telling you it’s a viable program? That’s just the story they need to tell to ensure their own political power.
They can’t tell you the truth and remain in office.
But there is no cash in the Social Security trust fund. There never has been.
Here’s the best description of the “trust fund” scheme by David C. John of The Heritage Foundation:
“In short, the Social Security trust fund is really only an accounting mechanism. The trust fund shows how much the government has borrowed from Social Security, but it does not provide any way to finance future benefits. The money to repay the IOUs will have to come from taxes that are being used today to pay for other government programs.
For that reason, the most important date for Social Security is 2018, when taxpayers must begin to repay the IOUs, not 2042, when the trust fund is exhausted.”
The bottom line is there’s no chance that the government is going to be able to honor its existing Social Security commitments without radically raising taxes or drastically reducing benefits… and soon.
The most likely outcome is a combination of both.
The End of Retirement?
Here’s the harsh truth…
If you’re in your 60s, you’re looking at a reduction in Social Security benefits.
If you’re in your 40s or 50s, you’re looking at big benefits cuts and much higher taxes.
If you’re younger than that, well, who’s kidding who, you won’t get anything.
Look, Social Security’s reckoning day is coming no matter the carping and whining. The math no longer works…
The program pays out roughly $70 billion more than it takes in each year. And that shortfall is only going to get worse as more baby boomers retire.
If you think politicians will somehow magically fix Social Security without benefit cuts and tax increases, you’re living in a fantasyland.
Those charlatans still out there telling you it’s a viable program? That’s just the story they need to tell to ensure their own political power.
They can’t tell you the truth and remain in office.
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In case you wanted to do a little financial planning, - GA Tiger MU - 10/26 20:11:15