Moveon.org is MISLEADING you!
Social Security Dribble (continued)
Yesterday I gave some pretty good facts... even though the tripe I was commenting on was written in 2001.
Anyways, on to Moveon.org.
Moveon.org states that social security is _fine_ until 2042, where the social security will be cut by nearly 30%. This is very true. Social Security will be fine until 2042. It's also true that the benefits will be cut by roughly 30%.
But what about Bush saying it'll be bankrupt in 2042? What about 2018 with more going out than coming in? What about 2027 where money has to come into the system?
So many questions! So little time.
2018:
In 2018, it is determined by the SSA that more benefits will going out than what's collected. So, what would the SSA do? There's a fund that you probably heard of, but don't know what it is. It's called the SS Trust Funds - the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI). In 2004, the 12-month interest rate was around 4.271%. This is roughly twice the rate of inflation. This isn't really anything, but I just thought I would tell you that there's a fund accruing interest.
2027:
From 2018 to 2026, social security benefits will be paid off with the interest made from the OASDI trust funds. However, starting in 2027, to keep social security benefits afloat, the OASI's assets will be tapped and the DI Fund will be bankrupted. Everyone will now be dependent on the OASI Fund.
2043:
In 2043, there will be no money left in the OASI trust fund. Social security is officially bankrupt.
So what's this talk about ~70% of social security benefits? This isn't rocket science. Think. If people are still putting money into the social security system, then money is coming out! OMG!@#@! This is how we get our decreased benefits folks. Bush is right. Social Security will be broke in 2042. It will have ZERO money left in the trust fund. There will be a shortfall of promised benefits. More people be in poverty. Of course, this is assuming the SSA knows what they're talking about.
Anways. Do yourself a favor. Invest your money now.
Yesterday I gave some pretty good facts... even though the tripe I was commenting on was written in 2001.
Anyways, on to Moveon.org.
Moveon.org states that social security is _fine_ until 2042, where the social security will be cut by nearly 30%. This is very true. Social Security will be fine until 2042. It's also true that the benefits will be cut by roughly 30%.
But what about Bush saying it'll be bankrupt in 2042? What about 2018 with more going out than coming in? What about 2027 where money has to come into the system?
So many questions! So little time.
2018:
In 2018, it is determined by the SSA that more benefits will going out than what's collected. So, what would the SSA do? There's a fund that you probably heard of, but don't know what it is. It's called the SS Trust Funds - the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI). In 2004, the 12-month interest rate was around 4.271%. This is roughly twice the rate of inflation. This isn't really anything, but I just thought I would tell you that there's a fund accruing interest.
2027:
From 2018 to 2026, social security benefits will be paid off with the interest made from the OASDI trust funds. However, starting in 2027, to keep social security benefits afloat, the OASI's assets will be tapped and the DI Fund will be bankrupted. Everyone will now be dependent on the OASI Fund.
2043:
In 2043, there will be no money left in the OASI trust fund. Social security is officially bankrupt.
So what's this talk about ~70% of social security benefits? This isn't rocket science. Think. If people are still putting money into the social security system, then money is coming out! OMG!@#@! This is how we get our decreased benefits folks. Bush is right. Social Security will be broke in 2042. It will have ZERO money left in the trust fund. There will be a shortfall of promised benefits. More people be in poverty. Of course, this is assuming the SSA knows what they're talking about.
Anways. Do yourself a favor. Invest your money now.