Social Security And Medicare Insolvency Questions…

[Ingomike]

That’s just going to spend even more money, particularly since you’re adding a very high interest rate during decades when rates were very low. Plus, you can’t shut it down unless you plan to stiff everyone who’s receiving benefits today since today’s payments depend on today’s payroll contributions. Guess how quickly that plan gets rescinded when tens of millions of recipients contact their representatives! You’ll need a more fair approach and likely one that is implemented gradually. Try again.

Everyone that is a recipient today will get what they paid in plus interest. I realize in the real world this would never work but it makes as much sense as some if the other proposals.

And as for the interest rate suggested, the government has been charging the people that rate (10%) all through the low interest rate periods why should they pay a lower amount than what they collect? If you really believe that then you believe the government should be heads they win, tails we lose…

 

[Expat]

Ain’t it funny the things that government does that will run out of money and the things that won’t?

Yep, you never hear any concerns about welfare programs, foreign aid, etc. running out of money.

 

[Ingomike]

Ain’t it funny the things that government does that will run out of money and the things that won’t?

Almost as funny as what physically shuts down and what doesn’t during a government shut down…

 

[BehindBlueI's]

Ain’t it funny the things that government does that will run out of money and the things that won’t?

Insolvency in this case doesn't mean the government is out of money for it. It means the trust fund specifically set aside for this, along with the direct tax for it, are depleted.

Given the government has borrowed a few trillion dollars from the trust fund (somewhat over half of the cash reserves that should be in the trust fund are IOUs instead) it largely means they'll need to start repaying the piggy bank.

SSI solvency isn't really a complicated issue mathematically. Politically, though...

 

[GodFearinGunTotin]

Insolvency in this case doesn't mean the government is out of money for it. It means the trust fund specifically set aside for this, along with the direct tax for it, are depleted.

Given the government has borrowed a few trillion dollars from the trust fund (somewhat over half of the cash reserves that should be in the trust fund are IOUs instead) it largely means they'll need to start repaying the piggy bank.

SSI solvency isn't really a complicated issue mathematically. Politically, though...

No need to borrow when you can simply print, in modern monetary policy.

This is a scare tactic just in time for an election. Let’s watch to see how republicans get tangled up in the trap.

 

[BugI02]

We have been coming to this point for some time, and you have to consider how much of the medical/industrial complex relies on medicare. Nationalizing private retirement and/or making SS means tested will also generate a serious stir.

I have seen several op-eds already advocating giving 'boomers' a 10% haircut on their assets because we supposedly benefited excessively from the deficits run up on 'our' watch - benefited because we saved and invested but the market was 'better' than it should have been

As no one is advocating spending less, one has to believe 10% would just be the beginning. Taxing paper gains will likely be how they get started, that opens the pathway into your investment accounts

 

[Ark]

Social security and Medicare and Medicaid will never actually be "insolvent". We'll just print more money to fund them. The money may not be able to buy actual services, but by God they'll be "funded".

 

[Leadeye]

I have seen several op-eds already advocating giving 'boomers' a 10% haircut on their assets because we supposedly benefited excessively from the deficits run up on 'our' watch - benefited because we saved and invested but the market was 'better' than it should have been

As no one is advocating spending less, one has to believe 10% would just be the beginning. Taxing paper gains will likely be how they get started, that opens the pathway into your investment accounts

My fear has always been that the government would simply confiscate your 401K/IRA and replace it with a government bond containing all sorts of conditions.

Thinking that this was one of hrc's plans I got some money out of mine and spent it on guns. I wanted to at least enjoy some of it before it was put out of reach.

 

[spencer rifle]

Long ago I knew better than to depend on SS during my retirement. I and the family did without and simplified, while we invested in carefully selected funds and kept an eye on our pensions (in states likely to remain solvent, NOT NY, IL, CA), all the while funding our kids' 529s and paying expenses all on 1 income. The main investment has done 13.3% over the last 10 years, and 11.2% since 2001.

SS is still figured in our retirement planning, but I really have no faith that it will actually be there in the long term. With retirement looming, we are taking steps now.
Indiana has what is called a MillieMorgan retirement - if you have enough years in and are old enough, you can start receiving pension while still working. I ran the numbers and the break-even point between taking it now and waiting two years was 36 years out. Extra cash to invest or get more 4 Bs (or, more likely, use for medical to cover our horrendous insurance with a $7000 out of pocket).

 

[Ingomike]

My fear has always been that the government would simply confiscate your 401K/IRA and replace it with a government bond containing all sorts of conditions.

Thinking that this was one of hrc's plans I got some money out of mine and spent it on guns. I wanted to at least enjoy some of it before it was put out of reach.

Wow! I have had that fear as well. Kind of envision it as them offering super social security in exchange to get in you will have to surrender your retirement accounts…

 

[GodFearinGunTotin]

My fear has always been that the government would simply confiscate your 401K/IRA and replace it with a government bond containing all sorts of conditions.

Thinking that this was one of hrc's plans I got some money out of mine and spent it on guns. I wanted to at least enjoy some of it before it was put out of reach.

Yeah, there’s a lot of money just sitting there. Politicians hate that.

 

[spencer rifle]

Yeah, there’s a lot of money just sitting there. Politicians hate that.

Not when they can use it to bribe their constituents...

 

[phylodog]

Considering it's run by the same government who has now put us in $34 trillion in debt, is anyone surprised?

 

[jedi]

Insolvency in this case doesn't mean the government is out of money for it. It means the trust fund specifically set aside for this, along with the direct tax for it, are depleted.

Given the government has borrowed a few trillion dollars from the trust fund (somewhat over half of the cash reserves that should be in the trust fund are IOUs instead) it largely means they'll need to start repaying the piggy bank.

SSI solvency isn't really a complicated issue mathematically. Politically, though...

^ This

The Social Security Trust Fund Is Just a Stack of IOUs in a West Virginia Filing Cabinet

The Social Security Trust Fund vital to keeping the program solvent is nothing but paper IOUs. Here's why this will become a serious problem by 2020...

moneymorning.com

Note this is from 2017 and it has not chnaged.

 

[jedi]

My fear has always been that the government would simply confiscate your 401K/IRA and replace it with a government bond containing all sorts of conditions.

Thinking that this was one of hrc's plans I got some money out of mine and spent it on guns. I wanted to at least enjoy some of it before it was put out of reach.

One of the plans floating in congress that seldom gets talked about is the USA plan.

Universal Savings Account.

Basically the .gov would confiscate all the 401k/retirement plans in the country and re divided that money to all SSN numbers and that is your new SS account.

The masses would see this as a big win especially those that do not work or have saved very little. The minority that invested would lose out.

The idea has been floating since the early 2000s. Can't find an older article on it or much info online.

Here is a bit of it..

Budget Blueprint for Fiscal Year 2023: Policy Proposal | The Heritage Foundation

The Heritage Foundation's Budget Blueprint for FY2023 is a comprehensive federal budget proposal containing more than 200 policy recommendations for lawmakers.

www.heritage.org

 

[DoggyDaddy]

One of the plans floating in congress that seldom gets talked about is the USA plan.

Universal Savings Account.

Basically the .gov would confiscate all the 401k/retirement plans in the country and re divided that money to all SSN numbers and that is your new SS account.

The masses would see this as a big win especially those that do not work or have saved very little. The minority that invested would lose out.

The idea has been floating since the early 2000s. Can't find an older article on it or much info online.

Here is a bit of it..

Budget Blueprint for Fiscal Year 2023: Policy Proposal | The Heritage Foundation

The Heritage Foundation's Budget Blueprint for FY2023 is a comprehensive federal budget proposal containing more than 200 policy recommendations for lawmakers.

www.heritage.org

 

[BehindBlueI's]

One of the plans floating in congress that seldom gets talked about is the USA plan.

Universal Savings Account.

Basically the .gov would confiscate all the 401k/retirement plans in the country and re divided that money to all SSN numbers and that is your new SS account.

The masses would see this as a big win especially those that do not work or have saved very little. The minority that invested would lose out.

The idea has been floating since the early 2000s. Can't find an older article on it or much info online.

Here is a bit of it..

Budget Blueprint for Fiscal Year 2023: Policy Proposal | The Heritage Foundation

The Heritage Foundation's Budget Blueprint for FY2023 is a comprehensive federal budget proposal containing more than 200 policy recommendations for lawmakers.

www.heritage.org

Nothing in your link says anything about confiscating anything. It's a voluntary tax free savings account that mimics an IRA without the penalties for withdrawing for non-retirement purposes at any age.

 

[jedi]

Nothing in your link says anything about confiscating anything. It's a voluntary tax free savings account that mimics an IRA without the penalties for withdrawing for non-retirement purposes at any age.

Yes on that link you are correct.
The original idea for USA is total confiscation of the 401k to reset the system.

It was on the web 10 years ago but I can't find it now. The articles have been scrubbed as it's not an idea they want well know till it's ready.

The mass panic would not be good.

 

[Route 45]

Yes on that link you are correct.
The original idea for USA is total confiscation of the 401k to reset the system.

It was on the web 10 years ago but I can't find it now. The articles have been scrubbed as it's not an idea they want well know till it's ready.

The mass panic would not be good.

This it?

Dems Target Private Retirement Accounts

RALEIGH — Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration.

www.carolinajournal.com

 

[jedi]

This it?

Dems Target Private Retirement Accounts

RALEIGH — Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers’ personal retirement accounts — including 401(k)s and IRAs — and convert them to accounts managed by the Social Security Administration.

www.carolinajournal.com

Thank you. That is one of them.
Like I said the plan has been in the works for a while. Note that is from 2008.

(Thread high jack)
It's similar to the gun laws which was originally based on nazi Germany law.

On Gun Registration, the NRA, Adolf Hitler, and Nazi Gun Laws: Exploding the Gun Culture Wars

Say the words "gun registration" to many pro-gun Americans and you are likely to hear that one of the first things that Hitler did when he seized power was to impose strict gun registration requirements that enabled him to identify gun owners and then to confiscate all guns, effectively...

scholarship.law.columbia.edu

What I mean by this is the idea was there but it took a while before it was passed in the usa.

Same with this usa idea law. It's been in congress for a while they just have to figure out how to make it stick on the masses.