Two things...
First, as to “$205,000 per year in retirement, or about $3 million in 2013,”.
Where does he get those rates of return?
and second....
the statement said. “This proposal would raise $9 billion over 10 years.”
$9B in $50T unfunded liability isn’t near enough. What’s plan B?
Since Social Security is the largest public retirement account, folks will clamor to take from the haves to give to the have nots.
All the sacrifice I’ve made to live like no one else so that I could live like no one else, is for naught? Thanks a lot, America.
All the sacrifice I’ve made to live like no one else so that I could live like no one else, is for naught?
Are you Dave Ramsey??
Seriously, we have gone completely around the bend here. This is like the old Midas commercial: Pay me now or pay me later except today it would be pay me now and pay me foreever.
Social security is not a retirement account, it is welfare just like food stamps et al, and is subject to the whim of the DC politicians.
Many people believe that Social Security is an “earned right.” That is, they think that because they have paid Social Security taxes, they are entitled to receive Social Security benefits. The government encourages that belief by referring to Social Security taxes as “contributions,” as in the Federal Insurance Contribution Act. However, in the 1960 case of Fleming v. Nestor, the U.S. Supreme Court ruled that workers have no legally binding contractual rights to their Social Security benefits, and that those benefits can be cut or even eliminated at any time.
Nestor sued, claiming that because he had paid Social Security taxes, he had a right to Social Security benefits.
The Supreme Court disagreed, saying “To engraft upon the Social Security system a concept of ‘accrued property rights’ would deprive it of the flexibility and boldness in adjustment to ever changing conditions which it demands.” The Court went on to say, “It is apparent that the non-contractual interest of an employee covered by the [Social Security] Act cannot be soundly analogized to that of the holder of an annuity, whose right to benefits is bottomed on his contractual premium payments.”
The Court’s decision was not surprising. In an earlier case, Helvering v. Davis (1937), the Court had ruled that Social Security was not a contributory insurance program, saying, “The proceeds of both the employee and employer taxes are to be paid into the Treasury like any other internal revenue generally, and are not earmarked in any way.”
In other words, Social Security is not an insurance program at all. It is simply a payroll tax on one side and a welfare program on the other. Your Social Security benefits are always subject to the whim of 535 politicians in Washington.
Plan B (really plan A) is Cyprus....
what does Dave Ramsey suggest at this point?
“Where does he get those rates of return?”
Remember, he’s taking into account that your retirement can’t be that long. You’ll be lucky to get 15 years, then the death panel will usher you off to the suicide booth.