Financial prep - don't rely on Social Security

[The Heretic]

. Last year i discovered, somehow my S.S. contributions where double what they should have been, I called S.S.I. they were totally useless and clueless as to why this happened, i called my accountant, he said " dont worry about it," all i can assume is someone was using my S.S.I. number and where making deposits into my account.

File for a correction. Demand it.

It doesn't do any harm to have more going in because someone else is using your SSI. If that is the case though (and not just an accounting error), they may have stole more of your identity than just your SSI#. And if they ask for SSI benefits using your SSI# then it will be a mess to clean up when you want to get those benefits for yourself.

They may have also opened credit, banking, etc., in your name, so check your credit report for accounts you did not open. Taxes too. I have a friend that had someone steal his identity and file for a tax refund/etc. using his identity. He keeps having to deal with this every year for years now and it still is not resolved. A real mess because he is married and his wife runs a business so they file jointly.

Then there is the possibility that they have warrants out for them using your identity.

So don't just let it ride - the SSI might just be the tip of the iceberg.

 

[2ndtimer]

Last year i discovered, somehow my S.S. contributions where double what they should have been, I called S.S.I. they were totally useless and clueless as to why this happened, i called my accountant, he said " dont worry about it," all i can assume is someone was using my S.S.I. number and where making deposits into my account.

Are you self employed? If you are, that would explain why you had "double contributions", since you pay in both the employee and employer contributions. That could also explain why your accountant told you not to worry about it. As to why SSI couldn't explain it, well you were talking to federal government employees, which may explain it .

 

[Defense Minister]

If they would give me every penny tomorrow that they've taken from me over the years, without interest, and stop taking any more, I would seal that deal in a heartbeat! I still have about 12.5 years to invest it before I retire.

 

[Defense Minister]

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.

You're a good man, Heretic!

 

[The Heretic]

If they would give me every penny tomorrow that they've taken from me over the years, without interest, and stop taking any more, I would seal that deal in a heartbeat! I still have about 12.5 years to invest it before I retire.

I used to say that, but now I am close to retirement so I will take the yearly payments.

 

[arakboss]

Step it up ladies. I want to get my social security contributions back.

https://www.cnn.com/2024/04/24/health/us-birth-rate-decline-2023-cdc/index.html

 

[Certaindeaf]

Step it up ladies. I want to get my social security contributions back.

https://www.cnn.com/2024/04/24/health/us-birth-rate-decline-2023-cdc/index.html

With sweet talkin like that how could they otherwise?

 

[Jay Walk]

Only the government can go broke while operating a monopoly.

 

[Stomper]

With sweet talkin like that how could they otherwise?

They love the abuse!!

 

[The Heretic]

Step it up ladies. I want to get my social security contributions back.

https://www.cnn.com/2024/04/24/health/us-birth-rate-decline-2023-cdc/index.html

I have been getting SS for 4 years. I could live on my IRAs alone, but that would not leave anything for my daughter except my real estate (more value than my IRAs though) and personal property. I would rather leave her as much as possible since she may have to retire early, and cash is a lot easier to deal with than real estate.

The question now is, whether I will still be alive in ten years?

I might, but my father didn't make it to 80, and my mother barely made it past 82. I do not know of any of my grandparents, aunts/uncles who made it past their 80s. Both my brothers have had heart operations (my older brother a serious one after a heart attack).

So... not too worried about SS - but I would prefer it continue on as it has from my personal perspective.

OTOH - I wish the gov would not force people to contribute - it goes against my political philosophy of minimal gov interference in our lives. I know I sure could have used that extra $ in my paycheck the first decade or two of my adult life - it would have made a big difference.

One of the proposals I read the other day was to stop taxing SS benes that are paid out and start requiring FICA taxes on earned income over X amount. Taxing SS benes started back in the 80s I recall and the amount where they start taxing has not increased with inflation or SS bene increases (i.e., it wasn't indexed) so more people are paying taxes on the benefits.

Personally, I pay very little because I pull very little from my regular IRA (mostly to do Roth conversions) - so with my itemized deductions, I only pay taxes on about 10% of AGI so my average tax rate is about 2%. I am now pulling about 2% per year from my reg IRA, plus I am going to do conversions of about 2-5% from my IRA to my Roth IRA - so my taxable income will go up - but I figure my avg tax rate will be between 10-12% (I want to do those conversions while my income is low so I pay less avg tax).

In 3-4 years I will have to start RMDs from my IRA and I want to get as much into my Roth as possible before then.

 

[solv3nt]

OTOH - I wish the gov would not force people to contribute - it goes against my political philosophy of minimal gov interference in our lives.

I'm ok with forced savings, it just doesn't go into a kitty controlled by the government. Most people don't have more than a few grand in savings. Heck, I'd even be ok if the forced savings went into 5% T-Bills.

 

[Caveman Jim]

View: https://youtu.be/foigd26-Ync?si=wGebv_MppZWRKsUi

 

[The Heretic]

I'm ok with forced savings, it just doesn't go into a kitty controlled by the government. Most people don't have more than a few grand in savings. Heck, I'd even be ok if the forced savings went into 5% T-Bills.

Being a Libertarian, I am not okay with the gov forcing anything except in the case of defense of citizens against harm. Otherwise, each person should have as much freedom in their lives as possible. If that means they make unwise financial decisions, including about retirement, then so be it.

Meanwhile, I paid my $ in, I want them out, with interest. If I had been allowed to invest them privately, I would have more funds to access now. If I die tomorrow, my kids will get zilch (beyond the burial allowance, which IIRC is a few hundred $ at most) - if I had been allowed to invest privately, they would get quite a bit and would be much better off. The gov & SS trust fund, relies on us dying before we get what we paid in.

 

[parallax]

…….,,,,…,,…

 

[Bobbygun]

Being a Libertarian, I am not okay with the gov forcing anything except in the case of defense of citizens against harm. Otherwise, each person should have as much freedom in their lives as possible. If that means they make unwise financial decisions, including about retirement, then so be it.

I hear what you're saying, and don't disagree. However, I believe if there wasn't forced savings and social security, there would be way more people starving in their old age and that would just beget even more government intervention, programs, departments, infrastructure, etc. A "no win" situation for sure.

 

[solv3nt]

Being a Libertarian, I am not okay with the gov forcing anything except in the case of defense of citizens against harm. Otherwise, each person should have as much freedom in their lives as possible. If that means they make unwise financial decisions, including about retirement, then so be it.

Meanwhile, I paid my $ in, I want them out, with interest. If I had been allowed to invest them privately, I would have more funds to access now. If I die tomorrow, my kids will get zilch (beyond the burial allowance, which IIRC is a few hundred $ at most) - if I had been allowed to invest privately, they would get quite a bit and would be much better off. The gov & SS trust fund, relies on us dying before we get what we paid in.

Don't get me wrong, I'm very libertarian myself, but I also understand humans and their lack of self-control. I also don't like seeing people suffer unnecessarily due to their own stupidity or lack of self-control.

One of the issues of being poor, is the inability to purchase better things or in bulk. For example, bulk canned goods is typically cheaper, but if you're living paycheck to paycheck, you pay the poor tax. Thus, paying the poor tax you will never be able to save for retirement.

 

[Lilhigbee]

Many people are paying the "poor tax" because SS is taking 12.4% of their wages!!

 

[solv3nt]

Many people are paying the "poor tax" because SS is taking 12.4% of their wages!!

That also includes Medicare, but I completely agree that the government is wasting their money and my generation won't likely get any SS.

 

[solv3nt]

A few thought provoking things. First, think of the most average person that you know, now think that half is the US population is dumber than this person. Second, the US median household income, two incomes in most cases, is around $80k/year. This equates to approximately $40/hr for a single earner or $20/hr for two earners. If you trust the news, many low $100k families don't have any savings and live paycheck to paycheck. Now consider median and below. How in the world will they ever be able to save for requirement?

As @Bobbygun mentioned, if they don't force savings, the government would eventually take over anyways.

 

[arakboss]

Coping with the Demographic Challenge: Fewer Children and Living Longer

Social Security Administration Research, Statistics, and Policy Analysis

www.ssa.gov