We'll Stay, Forever this way...
Last year about this time I wrote a post about Social Security being bankrupt entitled Weapon of Mass Wealth Destruction as a response to the Trustees report that I receive last year from the Social Security Administration.
In the post, I said the following:
In other words, every dollar that I sink into social security will decrease at a value of -.77% for 32 consecutive years to be worth .78 cents on the dollar when I retire. I know that nowadays this sounds like a pretty good investment.
Well, I got my latest version of the Trustees report this week, and it was a verbatim repeat of last year’s report with one small difference. Now the SSA is promising that I will get just $.76 on every dollar that I contribute. Pretty slick strategy on their part. Since everything else is the exact same – including the advice that I should be saving and investing my money somewhere else where it will actually appreciate in value – I suspect most people won’t notice this massive deterioration of value.
I know that the SSA probably assumes that Americans don’t do math, or else the whole idea of Social Security would never have gotten off of the ground. Or maybe they assume that Americans are just so good at math that they can use its “inherent logic” to justify things like Obama’s health insurance plan. Indeed, behind that monstrosity there has to be an army of MIT PhDs with their fancy models trying to convince everyone that this disaster of an idea will somehow fare better financially than Social Security and/or Medicare.
I am no math expert. However, I am 30 years old. Let’s assume I am going to claim my Social Security benefits at age 67.
37 X 2 = 74
If Social Security continues to erode in value at its current pace, then I can expect to collect $.02 on every dollar that I put in. I guess you can argue that the math of Social Security is more complex than this. Whatever. The bottom line is this: Social Security is a TERRIBLE INVESTMENT and certifiable proof that the federal government needs to give up on trying to offer entitlement programs. It clearly cannot run them effectively.
It is true that private financial markets are a risky place for your retirement. However, if you are stupid enough to believe that you can live a quarter of your life without having to work or be productive, then you probably deserve to lose every dime you make to any swindler who comes along selling you this lie.
For further thoughts on Social Security, read Social Security Bankrupt.
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If you even breach the topic of reforming S.S. with liberals, you will get the usual fascist response–”So you won’t take benefits since you hate it so much.” Mind you, some of the countries that liberals love to hold up as successful welfare states–like Sweden–have personal retirement accounts.
This ponzi scheme will not end well.
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The response that you won’t take benefits because you hate the program is a pretty hollow response. In my opinion, getting $.76 back for every dollar given isn’t a benefit. I am not being “given” anything. I am reducing the amount that is being taken from me by choosing to take these benefits if they are even there for the taking.
admin´s last blog ..Social Security Bankrupt: It’s Getting Worse
If you are 30, you should never plan on any sort of Government programs. Not in this age and time. Get prepared for what is coming to us all – these crooks in DC will NOT stop until it’s too late.
But by than – military on streets, martial law, administered food resources (people in lines in cities) with food coupons.
Don’t get me wrong – I don’t want any of these… But INTUITION never fails me… Even though I try to bring positive energy out to the world.
Take care of yourself and your family first. Than your friends and neighbors. People who have employment “income” are in much worst shape – they still HOPE for CHANGE. They are still brainwashed via TV.
@ Di,
I am not planning on receiving much in the way of benefits, unless I die young and my wife and kids get them. I am mostly insulted by how stupid the SSA must think I am every year when they send me their report on how terribly they are managing their assets, while at the same time taking the time to lecture me about saving for retirement. As far as your end of the world scenario, could happen but probably a long shot.