SOCIAL SECURITY MECHANICS- SOCIAL SECURITY IS FUNDED BY A PAYROLL TAX OF 12.4% ON WAGES UP TO $113,700, WITH EMPLOYERS PAYING HALF AND WORKERS PAYING THE OTHER HALF
- THE PAYROLL TAX FUNDS ARE THEN USED TO PAY SOCIAL SECURITY BENEFITS TO ELIGIBLE PEOPLE
- IN A PERFECT YEAR, THE PAYROLL TAX COLLECTED WOULD MATCH OR EXCEED THE TOTAL SECURITY BENEFITS PAID OUT
- IF THERE IS A SURPLUS, THE "EXTRA" FUNDS GET TRANSFERRED INTO A TRUST FUND WHICH IS THEN USED TO COVER THE YEARS WHEN THE PAYROLL TAX FUNDS ARE NOT SUFFICIENT TO COVER ALL THE BENEFITS PAID OUT
- SOCIAL SECURITY IS REQUIRED BY LAW TO INVEST THE TRUST FUND MONEY IN U.S. TREASURY BONDS
- THE BONDS ARE SUPPOSED TO BE CASHED IN WHEN THE EXTRA MONEY IS NEEDED TO PAY THE SOCIAL SECURITY BENEFITS
- THE GOVERNMENT SPENDS THE MONEY ACQUIRED BY THE SALE OF U.S. TREASURY BONDS TO THE TRUST FUND. THIS SPENDING IS THEORETICALLY OK, AS LONG AS THE GOVERNMENT IS ABLE TO PAY IT BACK
- EVEN THOUGH THEY ARE NOT HEAVILY "ADVERTISED", A NUMBER OF PROPOSALS WERE PUT FORWARD THAT WOULD GET THE PROGRAM BACK ON TRACK
- THE 2013 PAYROLL TAX INCREASED BY 4% TOTAL, WHICH MEANS THAT STARTING IN 2013, MORE MONEY WILL BE COLLECTED FROM THE WORKERS TO PAY SS BENEFITS
- YEAR 2033 IS CURRENTLY PROJECTED TO BE THE YEAR WHEN THE PAYROLL TAX WILL COVER ONLY 75% OF THE BENEFITS, MEANING THE OTHER 25% WILL NEED TO BE COVERED FROM THE TRUST FUND
- AS OF 2011 SS, HAS A $2.7 TRILLION SURPLUS
- THE FUNDS ARE INVESTED IN U.S. TREASURY BONDS -- STILL CONSIDEREDONE OF THE SAFEST INVESTMENTS ON THE PLANET
- THE BONDS SOLD TO SS ARE SPECIAL ISSUE & INTEREST PAYING
- THE GOVERNMENT HAS NEVER DEFAULTED ON THE TREASURY BONDS
- SOCIAL SECURITY'S PURPOSE IS TO BE GUARANTEED PART OF YOUR RETIREMENT INCOME THAT CANNOT BE OUTLIVED OR LOST IN THE STOCK MARKET
- YOUR IRAs, 401(k)s, AND BROKERAGE ACCOUNTS CAN BE WIPED OUT BY MARKET CRASHES, AND SS MAY BE THE LAST THING FOR YOU TO FALL BACK ON
- SS BENEFITS ARE ADJUSTED BASED ON INFLATION -- A FEATURE NOT AVAILABLE IN THE PRIVATE MARKET
- SS HAS LOW ADMINISTRATIVE COSTS (LESS THAN 1 CENT FOR EVERY DOLLAR COLLECTED)
THE BEST THINGS IN LIFE BEING FREE
- Sign up for Cool Savings ( http://www.coolsavings.com ), Free4Seniors (http://www.free4seniors.com ), Groupon (http://www.groupon.com ) and Coupon Mom (http://www.couponmom.com ) and receive free coupons for products and services offered in your area.
- Become a member of AARP (American Association of Retired Persons) for $16/year and get access to publications, articles, book, coupons, and giveaways. (http://www.aarp.org )
- Receive 10 free trees by becoming a member of the Arbor Day Foundation. The membership cost is $10. (http://www.arborday.org )
- Traveling - If you are 62 or older, you qualify for the Golden Age Passport, which is a lifetime entrance pass to national parks, monuments, historic sites, recreation areas, and national wildlife refuges that charge an entrance fee. There is a one-time $10 processing charge.
- Most airlines offer at least a 10% discount for seniors 62 and older. (Check with each airline to see what specials they may be running for the best deals.) Become a member of a frequent flyer program.
- Trains - If you prefer to travel by train, Amtrak offers year-round discounts for anyone 62 and older.
- Dining Out - Boston Market offers a 10% senior citizen discount to their 65 and older customers.
- Denny's offers a senior menu to customers 55 or older. They have also hooked up with AARP to offer a $1 cup of coffee and 10% off total bill. You must show your AARP card to receive these discounts.
- Dunkin Donuts offers a 10% discount off the total bill or will discount the price of drinks. The age varies, but is usually set at 55 and older.
- IHop has a senior menu or offers a senior citizen discount, age 55, of 10% off the total bill.
- Steak 'n Shake offers a 10% discount to their age 50 and older customers every Monday and Tuesday.
- White Castle offers a 10% discount to their senior customers - the age requirements seem to vary with locations.
- Starbucks - free coffee for your birthday when you sign up online and make one purchase within 12 months of registering.
- Other discounts and freebies - Free things to do in Chicago (http://chicagofree.info ) - Information about free admissions to museums, galleries, workshops, dining out promotions.
- Brad's Alerts (http://www.braddeals.com ) - one of the best online resources for amazing deals and sale promotions.
Info Source: AGT Tax & Insurance Services The Safe Money People
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Previously Published on March 30, 2011 altgroup website
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Appointment: December 3, 2012 10:00 am (Be on time)
Subject: High Finance Presentation
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From the Desk of Capitalist Ms. Piggy
GET YOUR SOCIAL SECURITY BENEFITS NOW!Yes, I'm urging all retiring baby boomers if they have decided to retire at age 62 to apply for Social Security (SS) benefits. You can apply three months before your birth date.
http://www.ssa.gov
I know you've been reading, listening or watching to many financial gurus on what to do about retirement investments. And that it's better to keep working until you reach the retirement age of 66? 67? 70? (someday). But why get your SS as soon as you reach the age of 62?
It's not because SS will run out of money and will stop writing checks for direct deposit by 2037 or earlier than that? No, no, no!!! You have to think of right now, today. Not tomorrow. Don't you ever think you may die tomorrow? Pushing daisies?
Let me tell you about a friend: She was diagnosed early last year of pancreatic cancer and died six months later. She was 64 years old, almost 65 when she died. Of course, she never got the SS benefits due to her in her silver years - the whole of her contributions passed on or will pass on to someone else. On the other hand, there's always a trade off -- she had a good health insurance. The thousands of dollars in hospital bills were all paid for, her being sicked with fast metastisizing cancer and hospitalized on and off for six months or more for chemotherapy.
So, retiring baby boomers, what do you prefer? Get it now or not yet?
Get it now, I think. Although my genetic factor points to breathing my last air at the age of 91, still many years to go I'm happy to say, it's a good choice. The monthly SS you get you can save and then invest. The last time I look at the annuity interest was 7%, better than the savings account interest of 0.03%. LOL!
Not yet? If you think you're a healthy individual and that you're going to live forever (yeah, right!), you may want to go on stressing and killing yourself working. Self, I'm a fatalist at heart. Tomorrow may not come for me - unexpected accidents happen every second.
By the way, if you have not been a billionaire by the time you retire, you will never be a billionaire. Unless you marry a super rich guy. Listen to this song "Billionaire" by Bruno Mars:
http://www.youtube.com/watch?v=8aRor905cCw
http://www.youtube.com/watch?v=y8pwD6sPr3E
Published 12/1/12 lib's labyrinth
Blog Page: Retiring Baby Boomers
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