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Financial prep - don't rely on Social Security

FortunateSon

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I have a relative that never worked a day in her life, and she is drawing $1,000 a month in Social Security based on her husband's record. This is more common than you would think!

My opinion is that a person who is not eligible to receive benefits on their own work records should not be able to draw off their spouse's record until that person is deceased. It's just wrong...….
 
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I have a relative that never worked a day in her life, and she is drawing $1,000 a month in Social Security based on her husband's record. This is more common than you would think!

My opinion is that a person who is not eligible to receive benefits on their own work records should not be able to draw off their spouse's record until that person is deceased. It's just wrong...….
Yes, my ex, now disabled, draws her SSI benefits based on my earnings/contributions (the latter are involuntary) and has for over a decade. Very familiar with the option. Doesn't impact my benefits in any way.

I would point out that spouses/exs can get benefits based on your earnings only if the benefits would be greater than what they would get based on their own earnings.

My main issues with Social Security is that it is not voluntary but mandatory, and that if I died tomorrow, my daughter would get a few hundred dollars burial benefit and that's it. The program is based on the idea that a certain number of people will die before they get a penny, and that most of their families won't get much if anything either. The problem is that people are living longer and (I think, I haven't verified) that the ratio between people drawing benefits and the people still working and putting money into the system, is getting out of kilter - especially with baby boomers now retiring.

It would take much to keep the system funded - they have done it before with tax increases over the decades - but eventually the tax will become too much to bear as they keep adding/increasing benefits and more people live longer and retire.
 
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Dyjital

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I bet it collapses sooner

Will we see migrant caravans heading south in our near future?
 
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Heck, a family can bring grandam and grampa from the old country and they'll get social security.
And people wonder why the system's going broke...
If you don't work, or your spouse (or ex) hasn't worked, you won't get a dime from SSI. It isn't welfare - you have to work a certain amount of time and earn a certain amount to get any benefits from it. I am not aware of any SSI benefits that a parent or grandparent gets for their descendants working. A spouse or ex-spouse, yes, sometimes children if they are minors, and that for a limited time.
 
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A friend has a daughter that is a HR person for a company that uses a large number of low-payed workers. She finds that many of the applicants use SS numbers that come from a small group of numbers. This is because the ID forgers are lazy and reuse the same numbers over and over.

The true owners of those numbers are getting large amounts deposted to their accounts, and from large numbers of sources over large geographic areas. This should ring alarm bells! Are the true owners going to get outsize benefits? Will there be a net benefit to the Trust Fund because all the contributions will not be claimed by the true owners?

It should be easy to do a database search at the Social Security Agancy to identify these numbers and alert the employers to the fake ones. And INS.
 
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A friend has a daughter that is a HR person for a company that uses a large number of low-payed workers. She finds that many of the applicants use SS numbers that come from a small group of numbers. This is because the ID forgers are lazy and reuse the same numbers over and over.

The true owners of those numbers are getting large amounts deposted to their accounts, and from large numbers of sources over large geographic areas. This should ring alarm bells! Are the true owners going to get outsize benefits? Will there be a net benefit to the Trust Fund because all the contributions will not be claimed by the true owners?

It should be easy to do a database search at the Social Security Agancy to identify these numbers and alert the employers to the fake ones. And INS.
The SSA will detect these. For one thing, you are supposed to tell them when you have multiple jobs because there is a limit on how much income you can get taxed - IIRC I think it is $120K. Also, the SSA obviously doesn't want to pay those people more than they should get, so I am sure they have algorithms to detect the identity theft. There is a limit on how much benefit you can get no matter how much you make.

Increasing the max limit of income taxed is one of the things being discussed to help SSI.
 

WoodsPlinker

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I was inspired by the story of Ludwig Von Mises and the fact that when he moved here he was able to live off his savings for many years when fleeing the nazis.

Knowing that retirement used to be based on savings, and Fiat currency now depreciates in value.... I have chosen precious metals to be a part of my savings over Fiat or stock market.

I do have a 401k, and a portion of IRA certified physical gold and silver and some that isn't. Eventually I want to contribute more into a mutual fund but for now I find my financial stability would be best served by being out of debt before moving further.

Social security goes to the general fund, was ruled by the supreme Court not to be a trust but part of the general fund, and is basically a tax.

I consider it a tax not retirement benefits.
 
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So, as I suspected, the SSA is using these illegal contributions to pump up the Fund. In practical terms, they are accessories to fraud perpetrated by the ghost workers, for the benefit of the SSA.
 
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Knowing that retirement used to be based on savings, and Fiat currency now depreciates in value.... I have chosen precious metals to be a part of my savings over Fiat or stock market.

.22 ammo will be a currency of the future.
So will Spam.
 
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For the past 6 years, after I moved here from the Seattle area, I have maxed out my 401K contributions, the last 5 years, I usually maxed out my Roth IRA too. Also, I bought property with a house on it and it has increased in value every year by more than my cost (principal and interest), so proven to be a good investment as when I sell, I will not only have lived here basically for free, but I will get the appreciation out of it too.

I could retire tomorrow and I have been tempted, but I am sticking to my plan of living mostly on SSI, having little to no debt (sell this place and use the equity to buy my next property further out), and reserving most if not all of my 401K/IRA for my daughter.

I am fortunate to have a well paying job where I can work pretty much as long as I want to and am able (all I have to do is show up, be able to sit, type and use my brain), so no taking a Walmart greeter or burger flipping job when I am 70.

But there are a lot of people who are living paycheck to paycheck and SSI won't be enough for them.
 

Mark W.

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House paid for minimal debt. No auto payments. 6 years to full SSI. I would like to put more into 401k but as I work 8 months a year 20% of current income is about as good as I can do. Should have enough with the wife's resources to make it to 85.
 
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So, as I suspected, the SSA is using these illegal contributions to pump up the Fund. In practical terms, they are accessories to fraud perpetrated by the ghost workers, for the benefit of the SSA.
Without the illegal immigrant workers contributing to the SS fund, it would be in a hell of a lot more trouble than it is. This is free money to the Feds that will allow the Ponzi scheme to last a few years longer. The actuaries can clearly see how much it is helping fend off the collapse.

The Oregon PERS system should be so lucky.
 
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my financial stability would be best served by being out of debt before moving further.
This. Once you are debt free excepting a mortgage maybe, you can really gain some traction.And then you will look at that mortgage and see what a boat anchor that is too. Accelerate payment on your mortgage principle and get rid of that too. Ignore those who say "" But..but...but the mortgage interest is deductible".

If you can get rid of your mortgage 15 years or more prior to full retirement while you are in your higher wage earning capabilities, you can really pile up some money in your retirement accounts.

Hopefully I will be rid of my mortgage in the next month. After paying an ex wife property settlements 30 years ago, and 18 years of child support, that took 40% of my net income, I still have a mortgage at 61 years old. I ran the numbers yesterday and I can have my retirement accounts where they need to be in about 5 years it the market holds and I work about half time until then.
 

arakboss

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I was inspired by the story of Ludwig Von Mises and the fact that when he moved here he was able to live off his savings for many years when fleeing the nazis.

Knowing that retirement used to be based on savings, and Fiat currency now depreciates in value.... I have chosen precious metals to be a part of my savings over Fiat or stock market.

I do have a 401k, and a portion of IRA certified physical gold and silver and some that isn't. Eventually I want to contribute more into a mutual fund but for now I find my financial stability would be best served by being out of debt before moving further.

Social security goes to the general fund, was ruled by the supreme Court not to be a trust but part of the general fund, and is basically a tax.

I consider it a tax not retirement benefits.
Getting rid of debt will be huge for me. I still have about $10k of consumer debt to go, then I'll save up for vehicle. I'll be paying child support for another 6 years. If inflation stays low, at 55 I should be financially comfortable enough to start contributing to Roth again. It looks like I will be working until 70ish or until I die if SS falls apart.
 
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I hope they are wrong. At 48, I have about $1000 in Roth, no pension, no 401k. It's nobodies fault but my own.
I didn't start really contributing to my 401Ks until I was in my 50s.

For sure, it is better to contribute earlier, and I should have, but I didn't. Had I, I would have a LOT more, even if I had contributed much less.
 

ma96782

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If you pay into it, and most people with a job do, then you are entitled to get benefits.

SSI Spotlight on SSI Benefits for Aliens

If you are here illegally, and INS finds you in a gov office, you are likely to be deported.

So many illegals wind up paying into SSI and never getting a dime out of it.
That is why.....it's important to catch them (illegals) early and deport them early.

Aloha, Mark
 

GWS

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I wasn't quite accurate about foreign FOB grampa & gramma getting SSI benefits. They were getting Social Security Disability benefits.
They were the parents of neighbors back in the PRK.
 

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