Tuesday, February 26, 2013

Who died before they collected Social Security?


Pay back the IOU’s to social security – cut presidential and congressional salaries and retirement – problem solved

 THIS IS SURE SOMETHING TO THINK ABOUT!!!!
THE ONLY THING WRONG WITH THE GOVERNMENT'S CALCULATION OF AVAILABLE SOCIAL SECURITY IS THEY FORGOT TO FIGURE IN THE PEOPLE WHO DIED BEFORE THEY EVER COLLECTED A SOCIAL SECURITY CHECK!!!
WHERE DID THAT MONEY GO?
Remember, not only did you and I contribute to Social Security but your employer did, too. It totaled 15% of your income before taxes.
If you averaged only $30K over your working life, that's close to $220,500.
Read that again.
Did you see where the Government paid in one single penny? We are talking about the money you and your employer put in a Government bank to insure you and I that we would have a retirement check from the money we put in, not the Government.
Now they are calling the money we put in an entitlement when we reach the age to take it back.
If you calculate the future invested value of $4,500 per year (yours & your employer's contribution) at a simple 5% interest (less than what the Government pays on the money that it borrows), after 49 years of working you'd have $892,919.98.
If you took out only 3% per year, you'd receive $26,787.60 per year and it would last better than 30 years (until you're 95 if you retire at age 65) and that's with no interest paid on that final amount on deposit!
If you bought an annuity and it paid 4% per year, you'd have a lifetime income of $2,976.40 per month.
Another thing with me.... I have two deceased husbands who died in their 50's, (one was 51 and the other one was 59 before one percent of their social security could be drawn.  I worked all my life and am drawing 100% on my own social security). Their S.S. money will never have one cent drawn from what they paid into S.S. all their lives.
THE FOLKS IN WASHINGTON HAVE PULLED OFF A BIGGER PONZI SCHEME THAN BERNIE MADOFF EVER DID.
Entitlement my foot, I paid cash for my social security insurance!  Just because they borrowed the money for other government spending, doesn't make my benefits some kind of charity or handout!!
Remember Congressional benefits? --- free healthcare, outrageous retirement packages, 67 paid holidays, three weeks paid vacation, unlimited paid sick days.  Now that's welfare, and they have the nerve to call my social security retirement payments entitlements?
We're "broke" and we can't help our own Seniors, Veterans, Orphans, or Homeless.  Yet in the last few months we have provided aid to Haiti, Chile and Turkey.  And now Pakistan......home of bin Laden.
Literally, BILLIONS of DOLLARS!!!
And they can't help our own citizens in New York and New Jersey!
They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives, and now, when it's time for us to collect, the government is running out of money.
Why did the government borrow from it in the first place?
It was supposed to be in a locked box, not part of the general fund.
Sad isn't it.
99% of people won't have the guts to forward this.

4 comments:

Anonymous said...

They are all criminals ! They live like Kings and Queens on us and have the best health care and insurance money can buy (At no cost to them )! When they retire what is their pay ? The same pay that they got while in office ! They give themselves pay raises ! They don't have to answer to ANYONE ! They are all crooks !

Anonymous said...

The nation is being destroyed, it is divided and ruled by parasites, criminals and terrorists. Act now before it is too late.

Anonymous said...

you really need to "google" "congressional retirement plans".
it might help you to come up with a better argument when you have some facts.

Anonymous said...

Here is a critique of the logic, assumptions and math behind this letter. It is very flawed reasoning.

First of all, insurance math whizzes have 100 years of figuring actuarial tables that can tell you averages for all factors...life expectancy, surviving dependents, death rates for different ages, etc.. It is very easy to figure precisely on average how many people die at what age and never collect a cent (although their dependents will, and they know on average how many dependents they have). So, that money is going out to people who live an extra long time or made very little money or who left lots of destitute dependents.

Now, second of all...he greatly overestimates the annual earnings by some clever math. Starting with that $30,000 average annual salary. I know you always identify with those rich fuckers who are hit so hard by taxes (and maybe you are even one of them ) But, for me, my first job out of graduate school in the late 1970s paid $5000/year. I didn’t make over $14,000 until I was thirty five and never made $60,000 in my entire career The money I was putting in for many early years was 15% of a pittance!

At $30,000/year average salary, the amount of principal he estimates in the early years is greatly increased because he AVERAGED the income. After ten years, he puts $4,500 x 10 =$45,000 in his fund. In reality, I would have put in about $9,000 ($750-$1000 x 10). And that is the amount that will collect 40 years of interest. The years of maximum income had the fewest years to collect interest.

So, I think his figure is greatly inflated. I suspect his estimate of total $$ over 49 years would be 4-5 times more than you would actually accrue. (I don't have the math skills to figure more than the logic of compound interest and take a rough guess.)

And thirdly, Social Security is not a retirement investment fund, it is an insurance fund that covers all for lots of things like disability, dependent support, and retirement. If you died at age 26 with a wife and 3 kids, they would get SS payments far beyond your investment, something a small stock fund would never do.

If you ask me, the way to fix Social Security is to raise the maximum contribution cap. Currently, that is about $113,000. That means that if you make more than $113,000, you don't pay any SS tax on it. Shouldn't people in the highest income levels pay the same Soc Sec contribution rate as the little guys?