DIYbanter - View Single Post - OT - Oh, You Mean THOSE Weapons Of Mass Destruction

Tim Daneliuk wrote:
wrote:
...

Yes, that is the problem indeed. Had the SSAs been
managed properly instead of looted, we'd all be well
positioned for retirement. IF retirees withderaw more
than they put in it is only becuase of that mismanagement.

The retirees are NOT the thieves. They are not demanding
payment beyond what woudl erasonably be expected to be
on account if their acounts had been managed with even
the minimal degree of fiduciary responsibility the pre-
Reagan era government demanded of private pensions.

Well hang on a second. It is certainly true that people should have
the reasonable expectation of get out what they put in and doing
so is not theft. But virtually every analysis of the situation I've
read - and I grant they could all be wrong and I'd not know the
difference - notes that *most* people will live long enough to take
out more than they put in (without regard to whether the funds are
actually there or not - this is a technicality at this point having
to do with how the government funds it).

Again, I think you wil find that every such analysis ignores both
the employer contribution, and reasonable interest rate.

I'm not clear on whether or not the employer contribution alone
would be enough to tip the balance into the black, but the
reason people will take out more than they put in (plus interest
on what they put in) is not becuase retirees are _thieves_. It is
because the SSAs were managed by thieves. Those are the
same thieves who are doing the analyses to which you refer.

--

FF