Why are Social Security Retirement Benefits called "Benifits" as if they are a gift from government when you pay for it yourself your whole career?

[RingOfFire]

As a financial expert I can tell you that the paltry amount of money you receive back from the Social Security retirement system sucks from an investment perspective. You could have been getting 10 times more with that money in retirement had you invested it without the government middleman in the private sector instead in things like stocks, bonds, real estate, commodities, etc. instead of having the government forcefully take it from you and fritter away on waste, fraud, abuse, inflationary activities and corruption.

And yet, even after ripping off your money for 40 years of a career or more they have the nerve to call these payments a "Benefit?" As if we are supposed to be thankful they forced us to hand over our hard-earned money to them all these years and when they give us back pennies on the dollar compared to what we could have earned with it we are supposed to think they are some kind of wonderful benevolent Kings who are bestowing compassion on the masses with a generous royal "Benefit."

Welcome to Democrat socialism. This is what you get.

[midnightmoon05]

Terms like that make the 80% happy 😂 but as you have indicated… if it’s in your hands, you would have invested well.
sadly, the govt is doing those little boys and girls a favor but “helping them” save for their retirement, so they get old… they continue to be under the control of the govt. … financially.

they played hard spent every penny and more… (like the govt told them to do) when older… they look forward to their SS checks …. they don’t have families to discuss financial matters.

I told hubby to not worry about SS … because we don’t need it. If it’s there… it’s pocket change/play money… if the govt change their rules… just make it a donation to the govt.

Like you, we are fine with our investments. And have been discussing these with our teens almost on a weekly basis over dinner meetings As well we have opened investment accounts for them and putting money in so that they have a good start.
however, they do not start playing till they “graduate” from understanding how to invest their money.

but how do we educate the public when the govt told all of us to spend like congress? They (Trump?) jest started pushing financial literacy in school … it’s a good start I guess… for those who need.

[RingOfFire]

I was fortunate to have a parent who was a very savvy investor and taught me well. What he taught me was far more valuable than the Ivy League finance degree I earned later. It starts when you are young and yes, the schools should be focusing more on this in the early grades. As you alluded to there is too much corruption in government and attempt to make the people dependent on them. That is another serious problem.

[midnightmoon05]

Most people don’t see these problems.
They just live day by day.

“What he taught me was far more valuable than the Ivy League finance degree I earned later. “
Interesting coming from a Wharton School alumni. Would you say this served you as a door opener to making connections and career path vs. financial literacy? … still you had to be smart enough to get in.

My daughter took a financial literacy class in HS… she said she already knows the materials taught and knows a lot more from our dinner meetings.

As a teacher, school is a good place to learn some basic skills, but our family weekly discussions are preparing kids better for their future that schools will. not be able to touch on multiple topics. The practical practice is mostly missing from book knowledge.

[RingOfFire]

You are correct about Wharton. How did you know? Yes, it was a highly respected door opener in my career. Very well regarded.

I agree that nothing can replace good parenting for educating children, but I think there is a lot of room for improvement in the educational system.

[midnightmoon05]

You told me a long time ago. You said that Trump was a few years. before you.

In terms of the education system. Sad to say… each time they replace a curriculum, it gets worse. That’s why I said kids in China is ahead of the US and I am upset that the US is blind sided or just plain stupid and or to mess up our kids purposely… again… another discussion.
I love teaching and I love the kids. Sad to say, these kids are being educated to become dumber.

[RingOfFire]

Yes, Trump actually graduated about 20 years before me.

The entire educational system in the US desperately needs to be overhauled. It spends the third highest amount per student in the world in K-12 yet ranks 18th overall in testing, about 10th or 15th in reading 10th to 20th in science and 26th to 30th in Math. That's abysmal.

I don't even know where it ranks in history and I don't want to know.

Kids need to be taught more math and more history. I think this is the biggest academic black hole here. And its extremely dangerous because as George Santayana said "Those who cannot remember the past are condemned to repeat it."

[RachyRach]

They have to dangle the carrot for you to keep running on the treadmill that is work life. Even if after 40 years of that carrot dangling there means that it's rotten and not worth the time and effort.

Need to invest privately from a young age

[RingOfFire]

Well said! 👍

[RingOfFire]

By the way that's what I did and now I will have no money worries for the rest of my life. The most valuable asset you have in your portfolio at your age is time.

[RachyRach]

Great!

[RingOfFire]

I began investing at your age and always put something in the piggy bank from every paycheck. It pays off because later in life it will give you a sense of security that will be really important to you. You are exactly right that starting young is the key.

[RavVid]

One of our state gov't is worse in terminology. They claim to subsidize petrol (gas). No they don't. They just tax it a little less than other Australian states. They still tax the shit out of it though.

Benefits/pension were invented by Bismark - did you know? He thought it would keep people quiet and accept heavy taxes while they were working if they got a pittance when they couldn't work any more.

[RingOfFire]

The only honest government is no government. Unfortunately it is a necessary evil. Our Constitution was designed to put strict limits on the power of our federal government. Also unfortunately they blew through those firewalls decades ago and are violating those boundaries more and more with each passing year.

[RavVid]

Sadly true that gov't is a necessary evil.

[exitseven]

For decades politicians have used the Social Security system as their own private piggy bank. Now they really do think it is their money that they are graciously giving us out of the goodness of their hearts.

[RingOfFire]

There is a lot of truth in that.

[strateguy632]

Benefit just means good. Not a gift. And they added some interest $ too.

[RingOfFire]

But it's not good. If you had taken that money every paycheck and invested it in just about anything else but the government Social Security system you would have ended up with much more in retirement.

[exitseven]

@RingOfFire the problem with that is that people would spend it on trips to disneyworld and big SUVs. The vast majority of Americans over 50 have less than $10,000 in their 401K accounts. I go to the supermarket and everyone that works there is over 70.

[RingOfFire]

@exitseven

I think you are correct. You can't help people who are irresponsible. Kids need to be taught more about money in the elementary, middle and high schools. The most important thing you can do to build financial security is start saving young.

[midnightmoon05]

I am not sure if this is the responsibility of our government or home… because we discuss financial responsibilities at home with our kids at a very young age. . our kids also said the lessons from classes are not useful.

[RingOfFire]

@midnightmoon05

The primary responsibility is at home. But kids go to school, and you are paying for that education. So it should be reinforcing and adding other aspects to what you want your kids to learn.

[jamesgoldman]

Because the state is a money pit and an inverted Ponzi scheme

[fishbone77]

So they can try to guilt you for wanting the money they confiscated from your paycheck

[Cidknee]

Thats their way of getting paid for nothing.

[RingOfFire]

You said it my friend!