Observations on life

The American voter … S C A R Y😱

In recent days I was eating in restaurants and could not help but overhear several conversations among fellow senior citizens. As may be expected the topics were health care, Social Security and retirement. It was scary.

One person was still working, but started collecting Social Security at age 67. ” Why did you do that? Why not let it grow while you are working?” He was asked. “Why would I do that? Everyone knows Social Security will be gone in two years”

In another conversation a group was bashing Obamcare as hurting them even though all were on Medicare and unaffected. One man claimed he lost his Blue Cross coverage when he turned age 65 and blamed it on Obamacare. The Obamacare bashing was endless and yet none of it was accurate.

Another couple began talking about retirement savings and stated proudly they had their retirement money in their bank savings account. They seemed happy until a man stated their money was at risk because the FDIC would be bankrupt in two years and any loss they suffered would not be protected. [1]

imageBut my favorite comment was from the man who explained to his friends that there was no sense in saving because the government had the power to take their money. He explained that when there was a deficit in the federal budget “they” would just go to everyone’s bank account and take what they needed.

Oh my, is the above representative of average Americans? It may be. The next time you are on Facebook and see one of those test that 97% of people fail give it a try. We need one of those tests to be able to vote.

[1] Since the FDIC’s creation in 1933, no depositor has ever lost even one penny of FDIC-insured deposits.”  The “insurance” offered on FDIC insured bank deposits is funded through “premiums” paid by member banks, not taxpayer revenue. Of course, if FDIC reserves and bank failures were dramatic, the FDIC could tap their $100 billion credit line with the U.S. Treasury and the full faith and credit of the U.S. Government.  Source: FDIC and Forbes. 

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9 replies »

  1. You can blame the media and politicians for most of the confusion, I see it every time I watch the news or read an article about Social Security, taxes, government benefits, welfare spending or Obamacare. I have done the numbers for me it is worth taking my SS benefit at age 62, it will improve my standard of living, if I wait I will have to pay taxes on part of the benefit, because of the higher yearly income. Something that is almost never looked at in the articles I have read. An increase in the SS benefit check at 66 or 70 is not worth waiting if you have to pay taxes on it. Plus I would not get the $60,000 that I would receive from age 62 to 66 until age 75. Wait minus the taxes it might be age 78. Also, what happens if they raise the tax rates on income subject to taxation. If your income is above the taxation threshold it is probably better to wait for the bigger check.

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    • That may not be accurate. If your benefit grows by 8% a year for 8 years, you have a great deal more to live on at 70 and beyond and you would have to be in a heft tax bracket to offset that increase. It all boils down to when u actually will need more money. At 62 or later in life trying to deal with the impact of inflation.

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      • The bigger check only works out for me if I live passed 78 to age 86, and then it only adds $45,000 in total benefits for me and my wife over the 16 year period. From age 70 to 86. I would give up $105,000 in benefits between age 62 and 70, It takes many months at the higher benefit to get that back, If I die before age 78, I do not get it all back. I have a military pension, so for me it is not worth waiting for the bigger check. Did you forget about the Taxes, issue? That I will not be paying by taking the smaller benefit, but getting more monthly checks, even the SS site says most people get the same benefit no matter when they start drawing SS. Because they know that many will not make it into their 80’s.

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  2. It is scary. To that point is it any wonder why a fellow like Trump who just blurts out lie after lie is doing so well? I really worry about the future when I hear the type of comments you wrote about. How do we suppose to have an a great America when we have become so dumbed down? The idea of free college is ridiculous if all we can raise are people who are so minimally aware of the facts. While I may often disagree with you on the interpretation of issues, I certainly respect that you have an informed opinion and as such realize fact from fiction. Keep blogging!

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    • Thanks. I just try and look beyond the rhetoric and propaganda and when I see so many people not doing that, it drives me crazy. People can disagree on solving a problem, but at least do so based on facts and an understanding of the consequences.

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  3. You must have a stiff neck as you listened to all the dialoge causing you to wheel around as everyone expressed their views.

    In the last paragraph regarding FDIC being able to tap into the US Treasury $100 billion credit line. Just a thought regarding that credit line, would the Treasury have to print that money or is it funny money that would have to be borrowed from other broke countries. Hmm.

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    • Kind of like the Social Security Trust when it starts redeeming its bonds to pay benefits. Print money, raise taxes, increase debt.

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  4. My father-in-law who is 87 and an Obama hater insists that $105 is taken from his Timken Company pension every month to pay for Obamacare. I’ve never been able to verify this; could it be true?

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