Social Security strained by early retirements

[cindykimlisa]

Re: Social Security strained by early retirements

There's one way to avoid many taxes - stay poor .

There is a better way: Read and understand the irs tax code as it relates to you and your income and expenses.

Cindy

[jk]

Re: Social Security strained by early retirements

There is another sub-group much larger than your two above: I am one of these. They are the ones who planned ahead, have little debt and will be able to retire early or at the normal time with somewhat less because of the recent events in the Fire economy.

i'll admit that my observation is anecdotal, but i see no data that leads me to think that there's a "much larger" group who planned ahead. to the contrary, my impression is that many thought they'd save for retirement by owning a big house. those who "planned ahead," i.e. saved, and saved enough to have anything left after the depredations of recent years, are few and far between.

[pangea]

Re: Social Security strained by early retirements

UPDATED VERSION:

No, I mean through now. The technical data only goes until 11/2008.

Personally I think the V2 version of this video stinks. The timing is off, the music is very screwed up and the gut punch effect that is delivered in the first one is missing.

The original one has 4x's the views, it's WAY more effective in teaching a lesson.

-Pangea

[metalman]

Re: Social Security strained by early retirements

Fantastic point that very very few people understand. They have you by the balls. I would assume that less than 1-2% of the population understands the ramifications of this statement.

If they did, they would not have so merrily went along with the program.

1000% correct.

It reminds me of this excellent itulip video that I can't watch too many times. It really does bring chills. It's one of the best ways to help people start to understand the space we are in. If you're new here or you haven't seen it, or haven't seen it in a while, it's worth another view.

IT NEEDS TO BE UPDATED.

http://www.youtube.com/watch?v=pZsY1rFr_yw

-Pangea

2nd version's better.



be great to see an update.

discount window borrowing is way down from nov. 2008...



but...

2009-08-01 $331.450
...is ~100x the worst month of the s&l crisis :eek:

[pangea]

Re: Social Security strained by early retirements

but...

2009-08-01 $331.450
...is ~100x the worst month of the s&l crisis

2900 Banks failed in the S&L Crisis.
So far only 95 have failed now.

How is that possible?

-Pangea

[mmr]

Re: Social Security strained by early retirements

Too many reasons to address fully here, but a few include:

- In the recent equity market run-up, even banks that were commonly believed to be dead financial institutions walking only two months ago raised enough common equity to buy more time.

- Most banks sold or securitized their riskiest assets (basically, they were originating and flipping what turned out to be bad loans to Fannie, Freddie, or the private securitization market). The banks that actually tried to retain most of their subprime / Alt-A (truly toxic) residential mortgages (e.g., WaMu and Wachovia) are long gone.

- Commercial real estate and commercial and industrial loans go bad later in the cycle than residential mortgages and credit cards, so we haven't seen the full effect of that deterioration yet. Even then, banks can refinance their own CRE loans, kicking the can further down the road, as long as they have enough liquidity to do so.

- The FDIC is likely extremely backlogged and is basically dealing with the meltdown of the week (Colonial, Guaranty, Corus, Irwin) while letting the small brush fires go unattended for a while.

[metalman]

Re: Social Security strained by early retirements

2900 Banks failed in the S&L Crisis.
So far only 95 have failed now.

How is that possible?

-Pangea

because we bailed them out this time.

[raja]

Re: Social Security strained by early retirements

the "full retirement" age has big implications for the tax treatment of benefits if you have other income. i just turned 62 and was going to start collecting whatever i could before it got inflated away, but discovered i'd give it all back in taxes.

jk,

Could you please elaborate on why you would have to "give it all back in taxes"?

I ask because I am nearing retirement age, and had planned to take the money early while they still had it . . . .

[metalman]

Re: Social Security strained by early retirements

jk,

Could you please elaborate on why you would have to "give it all back in taxes"?

I ask because I am nearing retirement age, and had planned to take the money early while they still had it . . . .

if you have no income you can retire and collect ss. but if you earn any income while collecting ss the amount of the income is for all practical purposes subtracted from your ss payments.

what, you thought ss was your money... like in an ira... just because the gov't took it out of your income for 40 yrs while you worked? :mad:

[Rajiv]

Re: Social Security strained by early retirements

Here is a good article on the issue - Deciding Whether to Work While Collecting Social Security

Second, vast numbers of baby boomers are financially unprepared for retirement (according to regularly published news reports) and will need to continue working even while collecting Social Security benefits. Therein lies the dilemma. People collecting Social Security benefits before full retirement age—and who also are earning wages or self-employment income in excess of allowed amounts—will lose all or a portion of their monthly Social Security benefits. For these people, does the loss of Social Security benefits outweigh the economic gain from earning a few extra dollars in retirement?
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Although the answer may at first appear to be obvious—as much as $1 of Social Security benefits will be lost for every $2 earned over the allowable threshold—a closer examination reveals that the answer depends on a beneficiary’s personal situation. A CPA must understand how the Social Security Administration generally calculates benefits when a retiree continues working.
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A person must make two primary decisions about receiving Social Security benefits. First, should one start receiving benefits before reaching the full retirement age? Second, if benefits are started early, should one continue working? This article examines the factors that need to be weighed in making the second decision.

[vinoveri]

Re: Social Security strained by early retirements

because we bailed them out this time.

Right, and we will continue to bail them out.
So what is the ramifications of that video showing the total borrowings from the Fed?..... perhaps nothing? There has yet to be a currency crisis in light of the nonsense that has gone on, so why do we think one is imminent or inevitable.

If the Fed creates a trillion here and a trillion there, bailing out the banks, and out T-bonds are still being bought at low yields, the $ is depreciating orderly, one could argue that when CRE goes or the next wave of ARM resets happens, the Fed just prints a couple more trillion, making the banks whole ....

WHERE's the CRISIS?!
Get out of the $ of course, but what else?

[pangea]

Re: Social Security strained by early retirements

Right, and we will continue to bail them out.
So what is the ramifications of that video showing the total borrowings from the Fed?..... perhaps nothing? There has yet to be a currency crisis in light of the nonsense that has gone on, so why do we think one is imminent or inevitable.

If the Fed creates a trillion here and a trillion there, bailing out the banks, and out T-bonds are still being bought at low yields, the $ is depreciating orderly, one could argue that when CRE goes or the next wave of ARM resets happens, the Fed just prints a couple more trillion, making the banks whole ....

WHERE's the CRISIS?!
Get out of the $ of course, but what else?

You raise a valid point (I think) and it's more a matter of perception. Because the general population does NOT understand.

I'm not sure what that tells us about our state in empire history, but when the fed can just pick and choose where to set a line about where to and where to not save businesses. A moral hazard has been achieved.

It's just a question as to when the population actually grasps this and what it decides to do with this information. By my estimation, more and more of the population is caring LESS about this than a year ago. This can be surmised rather crudely by simply looking at Google trend history for terms that relate to fiat currency, sound money, fed reserve, etc. All of them peaked their searching in Q3 2008 and have been steadily improving since (relative to how the fed or administration) would view things.

Obviously Ron Paul is probably the greatest threat to whether this *secret* is revealed. Nobody else seems to have much success in educating the masses, and Ron Paul has marginal, perhaps only fringe success anyway.

One has to wonder if Ron Paul (or other anti-fed types) are considered a threat to the financial stability of the dollar and/or the US.

It's all about perception. Animal spirits.

-Pangea

[pangea]

Re: Social Security strained by early retirements

because we bailed them out this time.

We bailed out the S&L banks too. I believe you can find the same data in the slide show or the fed data. Chump change compared to now, but obviously, we "let" 2900 banks fail, and provided liquidity to the others.

So why did they let 2900 banks fail then
And only 95 banks now?

Where is the secret "line in the sand" that says this bank shall stand while this bank shall fall?

Oh, that's right, they don't pass the oligarch approval test.

-Pangea

[metalman]

Re: Social Security strained by early retirements

We bailed out the S&L banks too. I believe you can find the same data in the slide show or the fed data. Chump change compared to now, but obviously, we "let" 2900 banks fail, and provided liquidity to the others.

So why did they let 2900 banks fail then
And only 95 banks now?

Where is the secret "line in the sand" that says this bank shall stand while this bank shall fall?

Oh, that's right, they don't pass the oligarch approval test.

-Pangea

[santafe2]

Re: Social Security strained by early retirements

if you have no income you can retire and collect ss. but if you earn any income while collecting ss the amount of the income is for all practical purposes subtracted from your ss payments.

what, you thought ss was your money... like in an ira... just because the gov't took it out of your income for 40 yrs while you worked? :mad:

If you can live on about $500 a week, (after taxes!), it should work out well. Work full time at your favorite fast food joint for $6.50 an hour and collect social security early...just don't get sick for a few years. Life is sweet - could you make that a double with cheese?