How would you change Social Security

May 2008
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0
#1
I've brought up this idea of changing Social Security on a couple threads but I thought I'd present it here to get your ideas. Most recently I presented the idea here http://www.defendingthetruth.com/debt/35354-americas-ranking-dropping.html#post322198 But I've presented it earlier where I suggest the SS be managed by the states. Under that concept the states would maintain a locked box and utilize the excess funds in the forms of tax free bonds for improving the states infrastructure.



If the system were set up with account statements and suggested projections the individuals could plot out a savings program for retirement that was free of tax and yet flexible to allow the owner the right to decide when he or she will decide to start or stop receiving benefits form the investment. In other words there would be no choice of 62 and a half or 65 and so on. And if an individual would like to withdraw small portions for certain expenses such as a child's education support he/she could do so without taxation liability.



Here's your big chance to offer up your ideas of how you would change Social Security for future years.
 
Feb 2007
34,677
17
Los Angeles
#2
Zack said:
I've brought up this idea of changing Social Security on a couple threads but I thought I'd present it here to get your ideas. Most recently I presented the idea here http://www.defendingthetruth.com/debt/35354-americas-ranking-dropping.html#post322198 But I've presented it earlier where I suggest the SS be managed by the states. Under that concept the states would maintain a locked box and utilize the excess funds in the forms of tax free bonds for improving the states infrastructure.



If the system were set up with account statements and suggested projections the individuals could plot out a savings program for retirement that was free of tax and yet flexible to allow the owner the right to decide when he or she will decide to start or stop receiving benefits form the investment. In other words there would be no choice of 62 and a half or 65 and so on. And if an individual would like to withdraw small portions for certain expenses such as a child's education support he/she could do so without taxation liability.



Here's your big chance to offer up your ideas of how you would change Social Security for future years.


Sounds like making SS more like your own 401K plan where you can decide where it should be invested, how much, make withdrawals etc?



The problem is too many people will screw up and spend it all or blow it before they even retire. What happens to them then?



I think we should start raising the retirement age by 6 months per year for the next ten years, up to 70.



And we should phase out surviving spouses receiving part of their late spouse's SS.



That would be a start and it's real money.
 
May 2008
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0
#3
garysher said:
Sounds like making SS more like your own 401K plan where you can decide where it should be invested, how much, make withdrawals etc?



The problem is too many people will screw up and spend it all or blow it before they even retire. What happens to them then?



I think we should start raising the retirement age by 6 months per year for the next ten years, up to 70.



And we should phase out surviving spouses receiving part of their late spouse's SS.



That would be a start and it's real money.
I was implying that the government would still invest it in tax free bonds, they're always complaining not having money for building bridges, sewers and power grids so let them pay interest on the money while it sits there waiting for you to claim it. The interest could be at a very nice rate considering all the jobs all that major construction would create...it would be equal to each state getting the Obama stimulus package.



Why do you think adult people need to be baby sat? If they screw it up then step over them like homeless people and tell your kids, there's an example of why you need to be responsible and save for your retirement. Still you could have some rules to preclude foolishness.
 

Fayt

Former Staff
Jul 2010
15,799
1,261
Not in MD
#5
garysher you want to raise the retirement age which I disagree with completely and RidinHighSpeeds your proposal is the worst out of the three I read, your for privatizing social security which is just insane. But then I saw you lean conservative so I'm not surprise. First I like to point out that social security doesn't contribute to the deficit. You guys make an easy fix complicated. Here's my proposal, it's simple.



Just lift the cap so that people like Bill Gates pay into social security just like the rest of us.



Problem solved.
 
May 2008
6,766
0
#6
RidinHighSpeeds said:
I think our social security or retirement savings should be just that, savings of which we can withdraw from when it comes time to retire. Here's my proposal:

http://www.defendingthetruth.com/ge...roposals-change-social-security-benefits.html
That's a well thought out assessment of the problem and solution. The problem is our political system that creates a situation of perpetual running for office and the Democratic Party's well tested strategy to propel the mature voters to oppose any such change out of fear of loss of SS funding. I think the Democrats want to preserve SS but do so by taxing the rich and doing things like means testing to limit the recipients.



While my idea of allowing the government to hold the savings funds similar to an IRA and invest the funds to gain value utilizing bonding projects for infrastructure might yield less interest on investment it would show clear and safe growth of funds. In times of high interest on the national debt these funds could be applied to the national debt limiting our exposure to foreign lenders allowing the dollar to retain its strength on the world stage.



I think soon the US will be in a hyper inflation situation, during the Carter administration interest rates skyrocketed and it appears that with the fed speeding up the money printing presses we will see very high interest rates return once again. Check this out Treasury Yield Curve Steepest Since at Least 1980 After Auction - Bloomberg As a young soldier the chain of command encouraged us to purchase US Savings Bonds that cost $50 for a $100 bond that matured in seven years... well I bought these bonds faithfully rather than being abused by my bosses and found out years later these were fantastic investments that actually matured earlier than the seven years during Carter and some of those $100 face value bonds were actually worth well over $250 dollars after sitting around for 17 years or so in my financial records when I cashed them in.



If the SS funds were in such a locked box subject to management of bulk funds similar to a mutual fund they could be used in a number of ways very securely to provide great interest returns in a very safe environment if the government established flexible rules for access and actual ownership. I think the ownership idea would spur individuals and employers alike to increase deductions and matching funds creating a giant pool of money that could serve as work infrastructure base fund and debt funding in high interest rate periods. But most importantly I think its something that could be sold to the Democratic Party so they wouldn't scare the old people from trying a new system.
 
May 2008
6,766
0
#8
fayt87linegod said:
garysher you want to raise the retirement age which I disagree with completely and RidinHighSpeeds your proposal is the worst out of the three I read, your for privatizing social security which is just insane. But then I saw you lean conservative so I'm not surprise. First I like to point out that social security doesn't contribute to the deficit. You guys make an easy fix complicated. Here's my proposal, it's simple.



Just lift the cap so that people like Bill Gates pay into social security just like the rest of us.



Problem solved.
That is class warfare plain and simple...why not just stop requiring citizens to pay for SS and send Bill Gates and his rich friends a bill for what ever it costs each month if you're going to do that?
 

Fayt

Former Staff
Jul 2010
15,799
1,261
Not in MD
#9
Zack said:
That is class warfare plain and simple...why not just stop requiring citizens to pay for SS and send Bill Gates and his rich friends a bill for what ever it costs each month if you're going to do that?


So your argument is to over exaggerate?
 
May 2008
6,766
0
#10
fayt87linegod said:
So your argument is to over exaggerate?
But you were the first to over exaggerate here "Just lift the cap so that people like Bill Gates pay into social security just like the rest of us.



Problem solved." What you are saying is for high income earners to continue paying SS contributions so that other people don't have to fund their SS plan. Your intention is to make the unfunded portion of the plan to be funded by a tax on the rich, money they will never see as a return to them in their SS checks when they retire. Why not just end collection of the SS/Medicare and put it into the general tax funded arena if you aren't going to support it with citizens contributions?
 

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