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Financial prep - don't rely on Social Security

ATCclears

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...and on a related note, what to expect in society when the money dries up?


snippet:

The Social Security program’s costs will exceed its income in 2020 for the first time since 1982—two years later than officials projected last year—forcing the program to dip into its nearly $3 trillion trust fund to cover benefits.

But by 2035, those reserves will be depleted and Social Security will no longer be able to pay its full scheduled benefits, according to the latest annual report by the trustees of Social Security and Medicare released Monday.

“Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing,” the trustees wrote, urging lawmakers to take action sooner rather than later to give policymakers enough time to phase in changes and shore up the programs.

Social Security consists of two programs, one for retirees and one for people who claim disability benefits. Taken separately, the retirement program will be able to pay full benefits on a timely basis until 2034, unchanged from last year’s report.

Social Security Costs to Exceed Income in 2020, Trustees Say
 

s1xty7

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I've never figured Social Security into my retirement plans. For that matter, I've never had nor expected any form of government assistance. You have to be prepared to take care of you and yours, whatever may come and by whatever means.

With that said, as long as we're talking financial planning, get a trust for your estate to minimize how much of what is already your's becomes the government's when you die. They really like to get their finger in every pie and anytime you can keep them out, do it.
 

Esam85

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I've never figured Social Security into my retirement plans. For that matter, I've never had nor expected any form of government assistance. You have to be prepared to take care of you and yours, whatever may come and by whatever means.

With that said, as long as we're talking financial planning, get a trust for your estate to minimize how much of what is already your's becomes the government's when you die. They really like to get their finger in every pie and anytime you can keep them out, do it.
I am not counting on social security at all. I also do bot consider it a form of government assistance. It needs to either be completely revamped or scrapped altogether. I wish it would be scrapped as i dont trust the government to manage any of my money as they sure as hell proven they are not capable.

For the inheritance i would venture to say that if you have enough money to be taxed then you know the loopholes.
 

USMC1911

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For the inheritance i would venture to say that if you have enough money to be taxed then you know the loopholes.
You would be surprised how easy it is to get taxed on inheritance. If you home is payed for and you have a meager retirement your most likely getting taxed if you die to early. Best part of a trust is the finger you give to the state/system (probate) that pretty much requires a lawyer. Money, money, money:rolleyes:
 

Esam85

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You would be surprised how easy it is to get taxed on inheritance. If you home is payed for and you have a meager retirement your most likely getting taxed if you die to early. Best part of a trust is the finger you give to the state/system (probate) that pretty much requires a lawyer. Money, money, money:rolleyes:
That part is true but i am 99% sure that it is a 5 million dollar net worth to be taxed. The average person is not worth that.I would also venture to say anyone relying on ss would not have an inheritance tax. Probate part very much agreed.
 
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USMC1911

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That part is true but i am 99% sure that it is a 5 million dollar net worth to be taxed. The average person is not worth that.I would also venture to say anyone relying on ss would not have an inheritance tax. Probate part very much agreed.
Yup that is the level for federal tax but local is much lower. Here in Oregon someone with 500k in retirement and a normal paid for house (median house price 425k) in Portland would be right on the edge. See how fast you could be considered "rich" by the state.
 

Esam85

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Yup that is the level for federal tax but local is much lower. Here in Oregon someone with 500k in retirement and a normal paid for house (median house price 425k) in Portland would be right on the edge.
In washington we dont have that yet. They are trying but have yet to be successful.
 
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They have been saying this for years.

I am relying on SSI for my retirement.

Why?

Several reasons:

1) By 2035 I may be dead. I may also retire next year, maybe 2021.

2) I have about $370K in IRAs and a 401K. I max out the 401K every year. I figure I will have about $450K in it when I retire. All or most of it I won't touch (or I hope I won't) when I retire. Why? It is for my daughter, who has serious health problems - any day she might have to quit working. She (and her husband) are doing ok, but living paycheck to paycheck. They cannot set aside any funds into retirement. If she makes it to full retirement age and I don't have to touch my retirement funds, those funds will have at least doubled or more by then.

At that point their house will be paid off, I will probably be gone, they will have enough to retire on, and they will inherit whatever property I own at the time - so they might sell their home and live on my property, or sell my property and that will help them more, or keep both properties. I won't be around to help them out, but my retirement funds will be there - I hope.

I will get about $30-$35K per year from SSI, depending on when I retire. Assuming I am able to buy a property without a mortgage, I can easily live on that much while doing what I want to do for at least the first ten years of retirement.

I understand that my situation is not the usual one for most people - so yes, most people won't have those funds.
 

CountryGent

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I've never figured Social Security into my retirement plans.
^ Ditto. I figured out a long time ago the whole thing is a completely unworkable Ponzi scheme that is headed for collapse. Disgusted? Yes. Surprised? Not even remotely. The human garbage that rules over us are as unethical as they are grossly incompetent. I'm mildly surprised it is going to fall apart in such a near future, though I shouldn't be. The only difference, of course, between this .gov scam and a Ponzi shyster is with the latter you have to be hoodwinked, while with the former you are forced into the system at, literally, gunpoint.

Cynicism aside, one of the best moves I made is getting into retirement vehicles at around the time I could legally buy a handgun or a beer. And I did the same for my beloved wife shortly after that time. To the younger guys, get in early, with a good company (I love Vanguard Group), put in everything you can, and watch it grow. Employer-based retirement plans are a primary, of course, but IRAs are such a good way to plan for the future. And there is annuities, but that is a whole study unto itself.

As to Social(ist) Security ... I'm annoyed that I've been paying into that POS system since age 15, but it is hardly a shocker, and there isn't much I can do in this regard. :rolleyes:
 
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I second The Heretic. Participating in SS was not an option. I took it @ FRA, and get a check every month, as does Mrs. Revjen45. We maxxed out the matching contributions for VIP @ Boeing, and have been generally frugal. Thus we now can live in retirement in relative comfort.
There's no chance either one of us will see 2035, so it won't affect me. I'm not sorry I won't be around to see the approaching dystopia.
 

SUPER X

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...and on a related note, what to expect in society when the money dries up?


snippet:

The Social Security program’s costs will exceed its income in 2020 for the first time since 1982—two years later than officials projected last year—forcing the program to dip into its nearly $3 trillion trust fund to cover benefits.

But by 2035, those reserves will be depleted and Social Security will no longer be able to pay its full scheduled benefits, according to the latest annual report by the trustees of Social Security and Medicare released Monday.

“Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing,” the trustees wrote, urging lawmakers to take action sooner rather than later to give policymakers enough time to phase in changes and shore up the programs.

Social Security consists of two programs, one for retirees and one for people who claim disability benefits. Taken separately, the retirement program will be able to pay full benefits on a timely basis until 2034, unchanged from last year’s report.

Social Security Costs to Exceed Income in 2020, Trustees Say
A Certian group want llegal aliens to receive social security.
 
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For around 25% of people age 65 or older, SS is 90% or more of their income:

People Aged 65 and Older Who Rely on Social Security for 90% of Family...

Elderly Poverty Statistics - Economic Security | NCOA

All investment schemes I've ever heard of, including the stock market, real estate, guns, metals and bitcoin, are Ponzi schemes. If everyone sells everything at once, POOF, a big chunk of your money is gone. Why is that? It's because the investment only has cash value if someone is willing to pay you for it at the time you want to sell it. I'll bet there were many folks who retired in 2008, lost a chunk of their investments, and were very happy to get that SS check. Ditto 1987, 2000, etc. That said, yes, your goal should be to not need SS.

They will have to fix it - probably by increasing the payroll tax and/or reducing benefits and/or increasing the eligibility age. Doubt it will go away in the near future.
 

41mag

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re: "have been generally frugal. Thus we now can live in retirement in relative comfort. There's no chance either one of us will see 2035",
part of my plans to thank fed.gov for the enforced indentured servitude they've imposed on the last 3/4 century of otherwise productive citizens, is to attempt to survive until the bleak 2035 Day of Reckoning. By then either some better gov.Plan will have developed, or my personal BugOutVessel will be cruising toward a different reality.
 

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