Farrell: To take or not to take early Social Security benefits

  • Article by: CHRIS FARRELL
  • Updated: February 2, 2013 - 4:24 PM
  • 6
  • Comments

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  • 1 - 6 of 6
ebenezerFeb. 3, 1310:34 AM

Social Security benefits are based upon an acturarial calculation. In truth, the net return for taking the payments early is essentially the same as waiting. You get a bigger payment for waiting because the total amount paid to you is paid over a shorter period of time (with an "interest factor"), from inception of payments to death. If you are worried about the sheer size of the payments, take the money early and invest it. Your principal plus earnings, once you start drawing down your investment, may exceed the "long wait" Social Security payment. There is no magic here. With SS payments the amount is based upon the qualifying value of your lifetime contributions combined with an earnings factor, and your statistically projected date of death.

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jd55604Feb. 3, 1311:33 AM

The plan for myself and the rest of the under 40 crowd is that we'll never see one red cent. We're just making our forced contributions now so that this ponzi scheme can make its promised monthly obligations to current recipients for the next 10-15 years.

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hermajestyFeb. 3, 1312:05 PM

jd55604: "The plan for myself and the rest of the under 40 crowd is that we'll never see one red cent."--That's the Republican and conservative Democratic (same difference) plan for Social Security, and they've been propagandizing younger Americans about it since the Reagan administration. Do a little research in NON-right wing source.

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jd55604Feb. 3, 13 1:04 PM

Sorry hermajesty but a vault full of government IOUs (treasury bonds)does not count as collateral when it comes to meeting future social security obligations. You and your employer's SS contributions are not saved or invested for you. The money is spent on current recipients just as soon as it is collected. The program is nothing more than a government endorsed Ponzi scheme. The leaders of any private sector company that paid older investors with new investors money would be prosecuted to the fullest extent of the law yet you actually defend this rotten entitlement program and blame its well deserved fraudulent reputation on conservatives.

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hermajestyFeb. 3, 13 2:20 PM

jd55604: If you really believe that, jd55604, then I suggest that you get after your Congressional and Senatorial representatives to stop wasting money on useless wars, corporate welfare, no-bid contracts, tax cuts for billionaires (e.g. the Walton family, who inherited their billions instead of "working hard" for them), and everything else that this country is wasting money on. But noooo, it's always "blame the most vulnerable first. They don't have lobbyists with bottomless pockets."

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jd55604Feb. 3, 13 3:35 PM

I'm with you on the useless wars and corporate welfare since those can be fixed by reducing the size of government but I don't think that the Waltons are to blame for our economic malaise. Love them or hate them, the family might not physically work hard or stem from some kind of Horatio Alger upbringing but they do create value by owning a successful business that people like to patronize (even if me and you don't shop there). Taxation does not create wealth. Increased productivity and producing goods and services that people want does. Without profits there is no charity.

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