Senator Rubio unveils proposal to reform retirement policy

[MrPots]

Originally Posted by Oerets

What gets me about any of these plans where an individual can place funds into stock and bonds. Not everyone is smart with money. Or wait to late to start saving.

Plus there will be fee's to guess who, financial advisers, banks for these accounts. Then who picks up the shortfall after the money is spent in retirement? Or with a death excess funds?



Barney

Right. Even with 401K plans the financial advisers and brokers skim off 95% of the gains. And the system sucks. The worker takes all the risk and the brokers take all the gains. Great system of you're a banker or broker.

[Tom Joad]

One thing the rich really hate about Social Security is that the benefit formula is progressive. Lower wage people get a better deal out of it than high earners.

http://www.actuary.org/pdf/socialsec...nefit_1200.pdf

Benefit Formula for Newly Eligible
Beneficiaries in 2001
PIA equals:

90 percent of the first $561 of AIME, plus 32 percent of AIME in excess of $561 but not in excess of $3,381, plus 15 percent of AIME in excess of $3,381
every dollar. For example, a worker retiring at age 62 in 2001, with an AIME of $4,000 would have a PIA equal to 90 percent of $561, plus 32 percent of $2,820 (3,381 - 561), plus 15 percent of $619 ($4,000 - $3,381), for a total of $1,500.

Based on this formula, Social Security benefits replace a higher portion of lifetime average earnings for lower-paid workers. For example, the replacement rate (i.e., the percentage of a worker’s pre-retirement
earnings that are replaced by Social Security) at Normal Retirement Age is more than twice as high (60 percent) for a low-wage earner, as for a high-wage earner (26 percent). For comparison purposes, financial advisors often tell individuals that they will need roughly 70 percent to 80 percent of their pre-retirement income to enjoy after retirement the same standard of living as before.

Social Security’s progressive benefit formula is the primary method through which the program addresses adequacy of benefits for workers with low earnings. In order to address adequacy of benefits for retired,
disabled, and deceased workers with families, the program also provides auxiliary, or supplementary, benefits for current and former spouses, children, and surviving spouses.

[piece-itpete]

The right way to save money on SS is claim there's no inflation and not give a COLA for two years. But right after being elected, so AARP'll forget about it before the next election.

Pete

[icenine]

Once you are in your 50s and 60s you need full health coverage without any bullshit gimmicks like vouchers.

They used to use vouchers in the USSR to buy milk and toilet paper.

Hey let's create a false debt crisis so we can use that as an excuse to destroy Medicare and Social Security. I am smart I graduated from a MAC university and like to read Ayn Rand books.

[whell]

Originally Posted by MrPots

Right. Even with 401K plans the financial advisers and brokers skim off 95% of the gains.

The frequency and severity that you demonstrate your lack of knowledge is truly note-worthy. Plan expenses for funds offered within employer 401(k) plans vary depending on asset class and whether or not the assets in the fund are actively or passive managed. The average is less than 1.5%.

http://fiduciarynews.com/2013/08/wha...an-should-pay/

There are also cost of running a 401(k) plan. These expenses are often paid by the employer who offers the plan, but can also be built into fund expenses in some cases for smaller plans, or the plan participants may pay some kind of account fee.

Of course, if you have documentation that supports your "95% of the gains" claim, please post it.

[piece-itpete]

Besides, the government took 100%.

Pete

[Ike Bana]

Originally Posted by whell

The frequency and severity that you demonstrate your lack of knowledge is truly note-worthy. Plan expenses for funds offered within employer 401(k) plans vary depending on asset class and whether or not the assets in the fund are actively or passive managed. The average is less than 1.5%.

http://fiduciarynews.com/2013/08/wha...an-should-pay/

There are also cost of running a 401(k) plan. These expenses are often paid by the employer who offers the plan, but can also be built into fund expenses in some cases for smaller plans, or the plan participants may pay some kind of account fee.

Of course, if you have documentation that supports your "95% of the gains" claim, please post it.

401K's are not the goldmine they're made out to be by employers. Most employer contributions are peanuts. Typically the fund offerings are so limited as to be useless, and the funds that are offered have sky-high management fees.

It's often a crap way to invest.

[whell]

Originally Posted by Ike Bana

401K's are not the goldmine they're made out to be by employers. Most employer contributions are peanuts. Typically the fund offerings are so limited as to be useless, and the funds that are offered have sky-high management fees.

It's often a crap way to invest.

LOL.

So me another investment that allows you to invest pre-tax funds, and the invested funds grow tax deferred until withdrawal. Combined with the "set and forget" aspect of payroll deduction, the plans give many folks a very favorable way to save money for retirement. The "sky high management fee" argument has already been dealt with.

[Tom Joad]

Originally Posted by icenine

Once you are in your 50s and 60s you need full health coverage without any bullshit gimmicks like vouchers.

Quoted for truth.

Originally Posted by icenine

Hey let's create a false debt crisis so we can use that as an excuse to destroy Medicare and Social Security. I am smart I graduated from a MAC university and like to read Ayn Rand books.

Quoted for truth again, sarcasm noted.

[Tom Joad]

Originally Posted by whell

The average is less than 1.5%.

That's 1.5% of the total amount you have invested, not your gains.

If you gain 1.5% for the year they get it all.

If you lose 10%, you lose 11.5% in all, and they still get their 1.5%.