So all my life I’ve been putting the max into 401k/IRA funds. My neighbor, who earns the very same salary as me has instead spent his money on new ski boats, fishing boats, RV’s and camping stuff every year (absolutely true situation). When we both hit retirement, I will have a nest egg and he will have put nothing away, so I won’t get social security but the government will pay him. Am I getting this right? Maybe I should cash out my 401k now and go by that boat I’ve always wanted.
You got it.
And I too saved all my life while my dopey neighbor spent his money like a drunken sailor. He'd get SS and I won't.
Maybe my neighbor is not so dopey. But Jeb Bush is.
My thoughts as well. We better spend our savings before they take it away. This is krap what he is proposing.
When we both hit retirement, I will have a nest egg and he will have put nothing away, so I won’t get social security but the government will pay him.
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That’s right, we’ll get screwed just like those who had hoped to supplement their income with their savings in a passbook account or CD’s earning enough to stave off the effects of inflation. How did that work out for them?
And how will the government determine what your wealth is? By forcing you to report on everything you own of course. Citizens get the shaft; only the bureaucrats prosper.
That’s exactly how I see it. Means-testing SS effectively becomes a huge retroactive tax on those with success, but also those who’ve sacrificed over the years. As it is currently, this is an additional 13% tax slapped on individuals whom the government deems to have “enough” income. Will there actually be a break-even point where those collecting SS can make more annual income than those who do not?