401k Shit the Bed?

[NATI BENGALS]

Why is my retirement like playing roulette at the casino?

Why is there a cap on what rich people pay in to social security?

If you make over $137,700 this year you dont pay any social security tax on anything over that.

So some NFL players will be done paying SS tax after one check.

Us regular ass shmucks will watch chunks come out of every pay check all year. Guess who could use it more on the week to week basis?

Why does their exorbitant earnings and those of all the other richards get special privilege over all the other people who will never make over 137k a year?


This doesn't seem too hard to figure out

[*TheLeonardLeap*]

(03-12-2020, 07:33 AM)NATI BENGALS Wrote: Why is my retirement like playing roulette at the casino?

Why is there a cap on what rich people pay in to social security?

If you make over $137,700 this year you dont pay any social security tax on anything over that.

So some NFL players will be done paying SS tax after one check.

Us regular ass shmucks will watch chunks come out of every pay check all year. Guess who could use it more on the week to week basis?

Why does their exorbitant earnings and those of all the other richards get special privilege over all the other people who will never make over 137k a year?


This doesn't seem too hard to figure out

Because there's a cap on what people can get back in social security.

In 2020, the most a single person can get per year in SS payments is ~$9,400. A person with a spouse can get ~$14,100.

SS isn't meant to be a system where rich people pay for your retirement. It's a system to help you pay for your own retirement financial security. If you are making over $137k a year, you theoretically shouldn't need the government to help you plan for your retirement's financial security. (I would argue you shouldn't be forced to regardless of what you make, but that's not what this thread is about.)


- - - - - - - -

Not to mention that depending on where you live, $137k/yr doesn't make you "rich". 

$137k in Washington DC, for example, is the same level of living as $70.5k in Cincinnati.

[Goalpost]

If you're in he workforce and pay into 401K, this actually will work out fine. If you put 6 percent in, you were buying less shares with that money then you do now. And when it goes back up, it will, you will have more shares doing it. Ten years from now, you will say, I'm glad I accumulated all those shares back then.

[*michaelsean*]

Don't look at your 401k, and like LL said, if they pay more into SS then they get more back. It isn't a welfare type program.

[fredtoast]

(03-12-2020, 10:54 AM)Goalpost Wrote: If you're in he workforce and pay into 401K, this actually will work out fine.  If you put 6 percent in, you were buying less shares with that money then you do now.  And when it goes back up, it will, you will have more shares doing it.  Ten years from now, you will say, I'm glad I accumulated all those shares back then.

Don't fall for this. Number of shares is meaningless. Return on money invested is all that matters. 10% return on one share worth $100 is same as 10% return on 10 shares worth $10 each.

[basballguy]

(03-12-2020, 11:40 AM)fredtoast Wrote: Don't fall for this. Number of shares is meaningless. Return on money invested is all that matters. 10% return on one share worth $100 is same as 10% return on 10 shares worth $10 each.

all that matters is...it will always go up...eventually.  unless you're retiring in the next 5 years...just don't look at it.  (my opinion)

[fredtoast]

(03-12-2020, 10:41 AM)TheLeonardLeap Wrote: SS isn't meant to be a system where rich people pay for your retirement. It's a system to help you pay for your own retirement financial security. If you are making over $137k a year, you theoretically shouldn't need the government to help you plan for your retirement's financial security. (I would argue you shouldn't be forced to regardless of what you make, but that's not what this thread is about.)

Actually Social Security is about society helping people with limited means to survive.

Doesn't matter how much you make per year, no one is going to have enough saved up to live on if they become disabled at age 25.  And almost no one carries disability insurance.

Social security is not about individuals.  It is about the entire society.  So just like everything else the rich should pay more than the poor.  There is a limit to how much clean air a rich person can breath, but their is no limit on how much they pay to keep it clean.

As long as there is no cap on income tax there should be no cap on SS tax.

[fredtoast]

The closer you get to retirement the more money you should move from stock funds to bond funds. You will get less growth potential, but much more safety against losing principle.

Within 5 years of retirement you should have almost all of your 401K in bond funds unless you have other sources of income or are very wealthy and retiring very young.

[GMDino]

https://dailycaller.com/2020/03/12/stocks-fallen-trump-kudlow-buy-coronavirus/

Quote:Stocks Have Lost Around 25% Of Their Value Since Trump, Kudlow Offered Market Advice


The U.S. stock market lost around a quarter of its value in the weeks since President Donald Trump and his top economic advisor, Larry Kudlow, suggested that investors buy equities because coronavirus had been contained in the U.S.


“The Coronavirus is very much under control in the USA,” Trump tweeted Feb. 24. “We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me!”

Quote:
[/url]Donald J. Trump

@realDonaldTrump




The Coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me!

[url=https://twitter.com/intent/like?tweet_id=1232058127740174339]138K
5:42 PM - Feb 24, 2020
Twitter Ads info and privacy

The Dow Jones Industrial Index closed that day at 27,960. The S&P 500 closed at 3,225.


Kudlow, the director of the White House’s National Economic Council, echoed Trump’s stock market advice the following day in an interview on CNBC. In a separate interview on the network he said that coronavirus had been “very tightly contained in the U.S.”


“The virus story is not going to last forever,” Kudlow said on CNBC’s on “The Exchange.”


“To me, if you are an investor out there and you have a long-term point of view I would suggest very seriously taking a look at the market, the stock market, that is a lot cheaper than it was a week or two ago.”


Both markets have fallen between 25% to 30% in the weeks since Trump and Kudlow’s advice, largely on news of the global spread of coronavirus.


As of Thursday, more than 125,000 people across the globe — and more than 1,300 Americans — have tested positive for coronavirus. On Wednesday, Trump announced limitations on air travel from Europe to the U.S., triggering a steep sell-off in the markets Thursday morning. (RELATED: Neil Patel: The President’s Dangerous Coronavirus Position)


As of Thursday morning, the Dow Jones was at 21,461, marking a 30.3% decline since Trump expressed his rosy view of the markets. The S&P 500, at 2,550, has lost 26.5% of its value. The Dow Jones has lost 26.2% of its value since Kudlow offered his advice, while the S&P has seen a 22.7% skid.

[Mike M (the other one)]

What they said was before the Market took a tumble and was true when it was stated (to Dino's Post)
So I'm not sure what your point is, but I feel that people are over-reacting, but what else is new?

As far as the SS Cap. I would definitely like for it to be increased or no cap.

[GMDino]

(03-12-2020, 01:18 PM)Mike M (the other one) Wrote: What they said was before the Market took a tumble and was true when it was stated (to Dino's Post)
So I'm not sure what your point is, but I feel that people are over-reacting, but what else is new?

As far as the SS Cap. I would definitely like for it to be increased or no cap.

It goes more to DJT's lack of knowledge, refusal to listen, and only thinking about what makes him look good.

Edit to add I don't blame Trump for the stock market. Nor do I credit him for it.

I agree on SS.

[fredtoast]

(03-12-2020, 01:36 PM)michaelsean Wrote: That's not how SS was ever designed.  You get out based on what you paid in.  

SSD is based on what you paid in.

SSI is just based on need.

[*michaelsean*]

(03-12-2020, 01:40 PM)fredtoast Wrote: SSD is based on what you paid in.

SSI is just based on need.

Crap I already deleted mine because I wanted to double check something.  

Edit: OK what I was checking, is that SSI is administered but not funded by the Social Security Administration. It's funded by the general fund.

[NATI BENGALS]

(03-12-2020, 10:54 AM)Goalpost Wrote: If you're in he workforce and pay into 401K, this actually will work out fine. If you put 6 percent in, you were buying less shares with that money then you do now. And when it goes back up, it will, you will have more shares doing it. Ten years from now, you will say, I'm glad I accumulated all those shares back then.

You don’t have to ride it all the way to the bottom. That’s the hard way. I’ve learned from that mistake.

[NATI BENGALS]

(03-12-2020, 11:08 AM)michaelsean Wrote: Don't look at your 401k, and like LL said, if they pay more into SS then they get more back. It isn't a welfare type program.

Except you should look. It’s your retirement. That’s part of the reason it is broke as hell. We are supposed to sign up and watch a chunk come out of every pay check but not pay attention to it and hope that Wall Street is looking out for our best interests...

[*michaelsean*]

(03-12-2020, 09:00 PM)NATI BENGALS Wrote: Except you should look. It’s your retirement. That’s part of the reason it is broke as hell. We are supposed to sign up and watch a chunk come out of every pay check but not pay attention to it and hope that Wall Street is looking out for our best interests...

Wall Street looking out for your best interests? Who told you that was a thing? It’s never been a thing and that’s not the reason people make money in equities

[BmorePat87]

Thank god I'm only 32...

[Benton]

(03-12-2020, 10:41 AM)TheLeonardLeap Wrote: Because there's a cap on what people can get back in social security.

In 2020, the most a single person can get per year in SS payments is ~$9,400. A person with a spouse can get ~$14,100.

SS isn't meant to be a system where rich people pay for your retirement. It's a system to help you pay for your own retirement financial security. If you are making over $137k a year, you theoretically shouldn't need the government to help you plan for your retirement's financial security. (I would argue you shouldn't be forced to regardless of what you make, but that's not what this thread is about.)


- - - - - - - -

Not to mention that depending on where you live, $137k/yr doesn't make you "rich". 

$137k in Washington DC, for example, is the same level of living as $70.5k in Cincinnati.

Well that's a concise answer.

My only other comment would be: 401ks are garbage. It's a waste of money for middle class earners. You'd be better off taking your 6% annual and dropping it on scratchers.

Why? Because the market has no regulation. You're hoping that it continues to grow over the course of your life with no significant downturns. Like those in the 80s, the 00s and now.

I sold off my stocks years ago and bought up supplies of toilet paper. Never spoils and once every pandemic you cash in. Who's laughing now?



Seriously, though, banking your golden years on corporate America doing well is insane. Best bet? Buy dirt, plant a garden and come to terms with the fact that none of us live forever.

[*michaelsean*]

(03-13-2020, 04:09 AM)Benton Wrote: Well that's a concise answer.

My only other comment would be: 401ks are garbage. It's a waste of money for middle class earners. You'd be better off taking your 6% annual and dropping it on scratchers.

Why? Because the market has no regulation. You're hoping that it continues to grow over the course of your life with no significant downturns. Like those in the 80s, the 00s and now.

I sold off my stocks years ago and bought up supplies of toilet paper. Never spoils and once every pandemic you cash in. Who's laughing now?



Seriously, though, banking your golden years on corporate America doing well is insane. Best bet? Buy dirt, plant a garden and come to terms with the fact that none of us live forever.

Well there's the company match, and the fact that history says you are wrong.  

[*michaelsean*]

(03-12-2020, 11:00 PM)BmorePat87 Wrote: Thank god I'm only 32...

It's going to happen several more times. I think there are a lot of young people who think making twenty or twenty-five percent is the norm.  When you are 55, then you shouldn't be investing the same was as when you are 32.