Despite mentally writing off the value of my Social Security benefits, in the bottom drawer in the way back of my cob-webbed mind, I know it will be there to fund my early bird special seafood buffets when I’m retired. Sure, the eligibility age for withdrawal might rise from 62 to 67, but we’re all hopefully living longer too. Besides, who really needs Social Security benefits if we’re saving over half our after-tax income for some many years anyway? Don’t get greedy now!
The Middle Class of America has given me a tremendous boost in conviction that Social Security benefits will be around for all, forever. If you read the comments on my post, “Disadvantages of The ROTH IRA: Not All Is What It Seems“, people have come out in force defending the virtues of the ROTH IRA, even though I clearly telegraph why we should not be contributing to a ROTH IRA if we haven’t maxed out their traditional IRA and 401K yet. To pay more in taxes to an inept and corrupt government that shirks on its promises is an atrocity.
We should ignore the fact that people comment on things even if they know they are wrong, to justify why they did something to make them feel better. Instead, we should take comments at face value. Those who support the ROTH IRA most likely have opened a ROTH IRA. Because they’ve opened a ROTH IRA, they believe that the government will do better with their money than they can on their own. Remember, only middle class people are allowed to contribute to a ROTH. Higher earners be damned!
As you know, I have an open mind and always look at both sides of each debate. My conclusion from the comments in my ROTH IRA post is this: Because so many people support the ROTH IRA, the people of America believe in the efficiency of the government and the fact that Social Security will be fully guaranteed at the age of eligibility. If people did not believe the government would make due on its promises to fully pay for Social Security, there’s no way people would give the government more of their money to manage!
People Vote With Their Pocket Books
Even though I am somewhat miffed at folks who are contributing to a ROTH IRA despite my reasoning, I am hopeful that the middle class of America believes in our government so much. This is why I firmly believe Big Government President Obama will be re-elected again. I’ve challenged Republicans to bet me whatever they want up to $1,000 to take the other side. My offer still stands for any of you who don’t believe Obama will get re-elected.
I am also ironically pleased that the income cut off limit for ROTH IRA contribution is so low at $105,000/$169,000 for singles and couples. This arbitrary income cut-off limit helps protect the thousands of hard working Americans who make more than this from falling into the trap of giving more of their income to the government to waste. At least the upper income group is being looked after at the margin.
The middle class, defined as sub $122,000 for individuals by the government, is what makes and breaks politician’s futures. Without the middle class, politicians cannot get elected and abuse their power in only ways that they know how they can. Hence, no politician will be stupid enough to try and raise taxes on individuals making less than $122,000. President Obama has wisely set the cut-off attack line at $200,000 for individuals.
The Only Social Security Risk Is Your Loneliness
If you are single and die before drawing Social Security, you’re screwed. But that’s OK, since you’re dead anyway. The government wins and you lose because you’ve paid all that money into the system only to reap no rewards. Oh, it’s kind of like the ROTH IRA come to think of it! But, that’s cool, because contributors are cool with it too, so never mind!
To clarify, it’s your closest relatives who are SOL if you die before collecting Social Security. Your Social Security benefits do not get passed down to your children to allow them to draw when they reach the full retirement age of 67. Your money will be forever kept by the government to do what it wishes.
If you’ve ever thought that there’s too many financial penalties for being married, especially if both spouses are good income earners, then consider the social security benefits of marriage. If one spouse dies, the other spouse gets to benefit from their social security benefits.
People Love The Government
Given the middle class believes in the government, they also believe that Social Security will be there for them when they retire. If not, all hell will break loose and politicians will no longer be able to gain and retain power.
People do not feel that it’s wrong the government gets to keep all the Social Security benefits if a single person dies. If people felt this was wrong, we’d do something about it. My belief in the American people has been renewed. I want to thank all ROTH IRA contributors and voluntary extra tax payers for their kindness and patriotism.
If you can count on yourself, then you can surely count on Social Security which is funded by you and your employer to take care of you in retirement!
Readers, after reading this article, and the one on the disadvantages of a ROTH IRA, are you now more bulled up than ever that we’ll get all our Social Security benefits or what?
If you don’t believe SS will be around in full, please explain.
SS Administration Update:
“After 2033, even if Congress does nothing, there will still be sufficient assets (from payroll taxes) to pay about 75 percent of benefits. That’s not acceptable, but it’s still a fact that there will still be substantial assets there,” Astrue, head of SS insisted.
Recommendation For Building Savings:
I suggest opening up a high yielding online savings account with EverBank. They currently offer as of 4/15/2013 a 1.01% interest rate on savings which is 100X greater than the national money market average of 0.1%. Withdrawing and depositing money is easy online as you wait to invest your cash. Don’t let the banks get away with paying you so little!
Photo: The fish in Venice is a metaphor for a donkey, which is a metaphor for.. nevermind. 2011.