EricDaRed81

iTrader: (10)

Bush's SS plan is starting to sound like Kerry during the election.

"I have a plan to fix social security"

That's great let us know how it works and we'll let you know.

http://money.cnn.com/2005/04/26/reti...ex.htm?cnn=yes

Salty

iTrader: (14)

Hard to say really. I'd say the plan is 90% in place. The part that seems fuzzy to a lot of us are the results and what they're still trying to refine. They are still trying to refine what will work more effectively while still allowing for higher yields.

Another reason you haven't heard too much about the foundation of the plan is because it's already based on a existing plan (Thrift Savings Plan TSP).

We just don't know how or if it will work the way it was designed to work. It's sorta like having an algebra teacher write a equation on the board with no definite answer. Sure it may look good on paper but he'll just stand by the chalk board until he has a figure to put next to the equal sign.

And if this plan does go forward it probably won't go into effect for you until 3yrs+ have passed. This is mainly because of the age bracket most of us fall into here.

I explained it in a thread before but can’t find. The one where psoper posted a one-sided SS calculator sponsored by Democrats.

Salty

iTrader: (14)

You bring up and interesting point though...

I have researched Bush's plan and know that the base amount is slightly smaller than what you're guaranteed now. So if I were to sit on my money without opening an account I’d come up slightly less than with the current system. The good part to this factor is that my children & grandchildren have a solid chance at some money they wouldn't had a chance to get otherwise. Once again, this is only if you don't plan to diversify your funds in the index.

So seeing how there's not any definite plan yet (I’d say we're back at 80% now according to this article: http://apnews.myway.com/article/20050427/D89NFG500.html) and there hasn't ever been a definite plan... Why are Democrats so up in arms about it?

I mean so far they're slamming a plan based on the proven TSP and the ability to diversify funds with minimal risk. This is exactly why they want a diversified index.

If you read that article then you'd realize that even the Republicans don't know what route they want to take now. They are still trying to figure out which of four avenues will survive. And one of these avenues doesn't even involve privatized accounts!

As Iowa Sen. Charles Grassley said in the article:

Well put if you ask me.


I'll go ahead and throw out the answer to the previous bolded question: It's because Bush is for it.

MVWRX

iTrader: (1)

I had read somewhere that with a privitized system (I don't remember where...), it would be possible for an individual to get less out of the system than people are getting now (as Salty mentioned), but it would only be possible to get slightly more than the current situation if one invested particularly well. Maybe I'm misinformed on the issue, but it seems like the privitization plan creates a higher risk than the current system without the opportunity for substantial gain over what is given in the current system. I realize, however, that the current system will probably implode within the next couple of decades if left untouched. So obviously something has to be done. I would just like to see a plan where the money for the SS system comes from eliminating frivoulous and inefficient spending in other aspects of the government. But I suppose that's a pipe dream because I don't think any administration has ever done a very good job at making sure that money is spent wisely by the government.

Salty

iTrader: (14)

It depends on what type of index they put it into which has yet to be determined. But there's already calculators (http://democrats.senate.gov/ss/calc.html) for a plan that hasn't even been put forth? WTF? It's asinine.

Here's what they're trying to figure out. They know most Americans are bad investors. Even with TSPs. They just don't understand their options or become lazy and procrastinate. But at the same time they don't want to withhold the peoples money because of these individuals.

So they are trying to implement a system that allows for a decent chuck of change from the very start. It may not be as big as today but at least it will be guaranteed over a longer period. Then they need to come-up with an index that allows good investors to do well while implementing safety nets for the less savvy. It's a major PITA algorithm that has to be done regardless of political affiliation.

I think it's wrong for these democrat lemmings and politicians to leech on Bush for taking a step in the right direction. I just don't think people realize that SS funds will be extremely exhausted by mid century and eventually gone. What then?

Salty

iTrader: (14)

So i take it everyone agrees with me in post 3?

BTW, Bush is supposed to announce the plan today.

Magish

iTrader: (2)

All I know is that I am already at a fairly young age starting to save for retirement as I am not counting on Social security at all. Right now I'm not too worried about what happens with it as my goal is to not be dependant on it.
-Jeff

EricDaRed81

iTrader: (10)

I voted accordingly

Salty

iTrader: (14)

I agree with the fact that you should plan your retirement so SS will never be something you rely on. On the other hand it is your money as you do pay taxes toward it. I would worry about where my money was going if I were you.

Salty

iTrader: (14)

I meant do you agree with the answer for this question:

MVWRX

iTrader: (1)

Actually I think it's because SS has been so f***ed up for so long that whatever party 'fixes' it will look real good. So of course the democrats don't want Bush to fix it. I hate democrats. And republicans. No, actually I hate the fact that all we have is democrats and republicans.

EricDaRed81

iTrader: (10)

I fixed my response.

The reason that they are so up in arms about it is becuase politicians like to ****. That's what they do. In our lovely two party system they just don't feel like they are doing anything unless they are fighting the other party. Whatever the republicans do the democrats will whine and vise versa.

The Two Party system sucks. All it does is spur fights between them like little kids instead of actually working to get something done.

Salty

iTrader: (14)

Good answer

Salty

iTrader: (14)

So Bush talked about it today and had a pretty good idea. Something even psoper would be happy about.

He mentioned the “sliding scale benefit formula” which may (not sure yet) be implemented in the plan.

The idea is to cut benefits to upper income retirees that have pensions and savings so they get less money.

Even though I’d like there to be absolute control over the money I understand that there has to be socialized aspects to the plan. Not only is the population growing significantly everyday but more people just aren't savvy investors. Something has to give.

The Rich and upper-middle class may not like the idea but they'll undoubtedly take their pension and savings any day. So they pay an equal share of taxes towards SS like the blue collar worker? I guess a cut in SS is the price you pay for success and wealth.