Beware “You Earned It – You Keep It Act”
We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.
QUINNSCOMMENTARY 
A historical look at the changes to SS. Key Dates in the History of Social Security.
https://www.nasi.org/learn/social-security/key-dates-in-the-history-of-social-security/
Which change was the worst?
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The “tiny portion” paid to social security (including employer contribution) to date is $324,774 for me based on last year’s statement. How much larger would this number be with a reasonable rate of return?
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The above doesn’t include the $77,454 for Medicare (which will likely be a “tiny portion” of the benefit I eventually receive). But that won’t be the case for Social Security.
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A tiny portion of what benefits you will receive during your lifetime and possibly a survivors lifetime. I received in benefits all taxes paid within six years and that was eight years ago, plus my wife receives more on my account.
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So, maybe that is one reason for the dire straights of the system–building in benefits that seemingly are not paid for–one gets their money back in 6 years and ones’ spouse receives benefits based on husband’s earnings–just like my parents–actuarily sound is another thing–I am no expert that’s for sure but could a pension fund be run like this with all sorts of goodies but for various reasons we need to shore up resources every 20-30 years?
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I and my employer paid $266,000 in SS taxes between 1959 and 2009. I have been collecting since 2009 an have collected in benefits many times my taxes paid and also employer taxes and every month and every COLA the gap gets wider. My wife who collects on my earnings has been collected since 2009 as well. Yes, I see what we paid in taxes as a tiny portion of what we have collected. Tiny portion or not, nobody pays for their benefits. If they, did benefits would stop when they received what they had contributed in taxes. If you are talking about doing better investing those taxes yourself, that theoretical based on a lifetime of everything going according to plan which for most people is highly unlikely.
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I call bullshit. You didn’t pay a “tiny” portion of what you’ve received. “Tiny” doesn’t mean less than paid in. You’re not adjusting for inflation, time value of money, or any type of reasonable return on what was paid in. Social Security could not be sustained if it were a private enterprise. I get that. However, the main point of your post has been debunked.
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SS is not an investment and you can’t evaluate it as such, it is social insurance funded by taxes. The taxes are unrelated to the benefits paid under a benefit formula. In the aggregate, beneficiaries pay about 15% of benefits received.
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Did a hypothetical with a fund we have invested with for many decades–U.S. blue chip dividend paying stocks–obviously not super accurate as Bother Quinn was “investing” more at the end than at the beginning–let’s take his $266,000–divide by 50-years of work–then divide by 12 so we get a monthly $443 into his fund –we include all expenses–we use the date 01/01/1950 to 12/31/2009.
We get a value of $9,516,,646.00–say the dollar amount is reduced by 50% for the fact that we over contributed at the beginning–still not too shabby. Of course other benefits come along with SS which one would need to buy on his/her own. But it’s interesting.
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should read 1959
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Politicians offering a free lunch?? Is that a problem?? I’m shocked–just shocked! You mean a student loan can be forgiven (transferred) by the stroke of the pen? Promises made to those paying into Social Security can be broken??
If I buy one of those horrible annuities from, say NY Life, that promise lifetime income of the same monthly $ (a good chunk is a return of my $) they can arbitrarily change the terms of the contract?
Looks like SS has an agreement with folks and then because of circumstance wants to make changes. Oh, I get it though, only on young people not receiving benefits–those old folks vote.
Wonder if I can change the terms of my mortgage? I wonder if the bank can change the agreement they have with me?
Looks like changes have been legislated like COLA’s and benefits to children that maybe were not paid for. That’s shocking so I guess it never happened.
I think we might be playing whack -mole with a system designed and overseen by politicians–sort of like the roll out of Barry’s 2010 healthcare program or the current FAFSA mess. To think people depend on this for day-to day expenses. I might rethink that annuity!!!
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