Now, we should all realize that social security is one of the biggest frauds that go. Each year we get…
Now, we should all realize that social security is one of the biggest frauds that go. Each year we get evidence of this when we find out how much we have contributed to our personal social security account over the years and how much we receive monthly when we retire.
Look closely at these figures. Ask any broker how much better your investment would be if the money had been invested outside the government system.
If the same savings were placed in an equity fund that tracks the big stock market averages (for example, S & P 500) instead of social security, your return on retirement can easily amount to five times as much over a lifetime. Even if you had saved in secured government bonds, you can insure an annual return of two to three times what the social insurance return will refund.
Instead, it is a legacy The foundation study found that that inflation adjusted, the average annual return on social security savings comes to a weak 1
.23 percent. The same study showed that for low-income people, inflation-adjusted returns can not be negative; that is, those who least can afford to get paid less than they and their employers have paid into their SS accounts over the years.
Worse than it is the risk of the entire social security fund’s solvency. Politicians often say that our social security savings are in a “lockbox”. But what they do not say is that the “lockbox” has been raid over the years by politicians who take out money from the lockbox to pay expense programs that they use to help get rebooked with our money. They replace that cash with IOUs. And they are a big part of our total sovereign debt that will soon reach $ 22 trillion … more than our entire gross domestic product [GDP]. When the interest rates rise, the Federal Reserve has already risen three times this year with a fourth scheduled in December. We can soon not be able to pay off the debt rate, which could give rise to disbursements of social insurance.
If all that was not bad enough, we have baby boomers to worry about; more people retire and not enough young people who pay in. The Social Insurance Fund now works with 2022 getting more money to benefit than it will come from social security contributions. Those who balance a control book know that the situation can not continue for a long time.
But to add insult to injury is the tactics the government uses to cut corners of social security charges wherever they can. Often we are unaware of these tricks until we face the death of our retired dear.
I recently became aware of this ultimate insult with the death of my mother, who died on October 28th. My mother was a hard working woman, who was employed most of the time, while she and my father raised my sister and me. She and her employer paid in to the system of each paycheck, and my mother was proud to receive her social insurance check at retirement … as painful as the controls were.
Less than two weeks after her death, I received a note from the social security agency. The note began to say, “We are sorry to learn about your loss. Please accept our sincere compassion.” But then the hammer hit.
If the deceased received social benefits, you must return the benefit received for the death day and any subsequent months.
If, for example, the person died in July, you must repay benefits paid in August … Benefits received per check must be returned to social insurance as soon as possible. Do not pay any checks received for the month when the person dies or later.
The letter unambiguously declared a rule that social security recipients lose money sent to them in the month they die, a rule that many do not know until you get the cold news. In our case, it means that they claim back $ 1 772.00, which is the money my mother received in October, although she died at the end of the month.
Thankfully, my parents were careful about saving my entire life. They invested their own modest egg eggs wisely, and we were blessed that they had enough money to make sure their last year was comfortable. But I can not help thinking about the families of those who could not save as much as my parents or had the mistake that the government really cares so much about taxpayers as politicians never tire of assuring us. For many, $ 1 772 is not a check that can easily be written.
So next time you hear politicians talking about how holy social insurance is, you just think about this little example of their infamy and of the overall deceitful nature of a system that needs massive reform.