The Residential Real Estate Crash Index Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: The Wharf who wrote (24565)	10/16/2004 3:23:11 PM
From: GraceZ	Read Replies (3) of 306849

I was told 16 years ago that the Social Security could not be counted on for people of my generation. I've made my retirement plans without calculating any contribution from SS. Anyone who did what I did, took a basic class in financial planning intended for non-professionals was told exactly the same thing. The reasons for this are simple. The program is funded with current contributions, the surplus is spent on current budget items. A large group like the Baby Boomers cannot receive the kind of benefits that our parent's generation received, it's a mathematical impossibility the same way Ponzi schemes eventually run out of potential "investors". In order to have less money equal more money over time you have to employ the time value of money. The only way to do that is to employ capital in some venture that has some future return on capital above the inflation rate, you have to employ compounding. You can't do what the government does with SS, simply shift a dollar from one person to the next unless you have a population of tax payers which will grow exponentially consistently. My generation didn't reproduce like our parent's generation. Unless something radically different occurs in our immigration policy or birth rates there will not be enough workers to fund the Boomer's retirement as promised. Increasing the already burdensome employment tax will not work and neither will borrowing to fund the shortfall. The only way out is to work our way out, to grow our way out. The good news is as the government raises the retirement age and taxes SS benefits they will compel people of my generation to work longer than their parents did, thus they will pay into the system longer funding only those who pass a means test or are truly unable to work. This was the original intent of those who started SS. It was meant to be a program to help those seniors most desperately in need. It was never intended to be the widespread middle class retirement plan that it became in the 70s. FDR is rolling in his grave looking at what it became. His intention was never that people would look upon SS as a replacement for prudent old age saving or to displace family support of it's elder members. Unfortunately that is exactly what resulted.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next