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Jay
Bork! Bork! Bork!
+2,006|4852|London, England

dayarath wrote:

don't know much about the whole retirement system, but doesn't a big pile of money open up once you retire (assuming you built one up in the first place) and you buy your retirement using it?
Depends on how your system is set up. Here in the US, we have a program called Social Security which everyone pays into with every paycheck from the day they start working until the day they retire. Once you retire, you receive a monthly check until the day you die from the SS program. Sounds ok so far right? Enforced savings and all that.

Except its not. It's a giant Ponzi scheme. Instead of the money paid into the SS program going into a giant pot to pay for future payouts, our government has been taking in the SS taxes, making the payouts to current retirees, and dumping the rest of the money SS earns every year into the general fund so they don't have to raise taxes. They've been doing this for the past fifty years, which happens to be the amount of time the baby boomers have been working. So, there is zero money saved up for the impending Retirement of Doom. It's scheduled to go completely bankrupt in approximately 10 years.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
Spark
liquid fluoride thorium reactor
+874|6169|Canberra, AUS
Yeouch.

The government doesn't have any control over the super funds, they're all in the hands of private companies here. All the government does is mandate that at least 9% of your salary has to be invested by your employer into the super fund of your choice. There's something like 1.2 trillion invested IIRC.

EDIT: Hmm, it seems there is a (fairly small) amount of tax on super contributions.

Last edited by Spark (2011-03-08 18:37:04)

The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
Shocking
sorry you feel that way
+333|5493|...

[email protected] wrote:

dayarath wrote:

don't know much about the whole retirement system, but doesn't a big pile of money open up once you retire (assuming you built one up in the first place) and you buy your retirement using it?
Depends on how your system is set up. Here in the US, we have a program called Social Security which everyone pays into with every paycheck from the day they start working until the day they retire. Once you retire, you receive a monthly check until the day you die from the SS program. Sounds ok so far right? Enforced savings and all that.

Except its not. It's a giant Ponzi scheme. Instead of the money paid into the SS program going into a giant pot to pay for future payouts, our government has been taking in the SS taxes, making the payouts to current retirees, and dumping the rest of the money SS earns every year into the general fund so they don't have to raise taxes. They've been doing this for the past fifty years, which happens to be the amount of time the baby boomers have been working. So, there is zero money saved up for the impending Retirement of Doom. It's scheduled to go completely bankrupt in approximately 10 years.
Kinda the same deal here, what I was talking about is the additional retirement payout you can build up with an insurance company, which is what my mum did.

so when she retires she'll get money from both

Last edited by dayarath (2011-03-08 18:39:36)

inane little opines
Jay
Bork! Bork! Bork!
+2,006|4852|London, England

dayarath wrote:

[email protected] wrote:

dayarath wrote:

don't know much about the whole retirement system, but doesn't a big pile of money open up once you retire (assuming you built one up in the first place) and you buy your retirement using it?
Depends on how your system is set up. Here in the US, we have a program called Social Security which everyone pays into with every paycheck from the day they start working until the day they retire. Once you retire, you receive a monthly check until the day you die from the SS program. Sounds ok so far right? Enforced savings and all that.

Except its not. It's a giant Ponzi scheme. Instead of the money paid into the SS program going into a giant pot to pay for future payouts, our government has been taking in the SS taxes, making the payouts to current retirees, and dumping the rest of the money SS earns every year into the general fund so they don't have to raise taxes. They've been doing this for the past fifty years, which happens to be the amount of time the baby boomers have been working. So, there is zero money saved up for the impending Retirement of Doom. It's scheduled to go completely bankrupt in approximately 10 years.
Kinda the same deal here, what I was talking about is the additional retirement payout you can build up with an insurance company, which is what my mum did.

so when she retires she'll get money from both
You mean like a 401K?
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
Shocking
sorry you feel that way
+333|5493|...
kind of, but she is the employer so it works a little differently, but the same concept. For every employee, a 401k is mandatory as well.
inane little opines
Jay
Bork! Bork! Bork!
+2,006|4852|London, England

dayarath wrote:

kind of, but she is the employer so it works a little differently, but the same concept. For every employee, a 401k is mandatory as well.
It's not mandatory here. Only SS is. We assume that everyone is intelligent enough to plan for their own retirement here.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
Shocking
sorry you feel that way
+333|5493|...
read on the wiki that 60% of americans nearing retirement have a 401k

yeah thats gonna be a problem
inane little opines
Spark
liquid fluoride thorium reactor
+874|6169|Canberra, AUS
It looks to me like the 401k's aren't as fat as they should be either...
The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
Jay
Bork! Bork! Bork!
+2,006|4852|London, England
Most people have their retirement funds tied up in their homes. It's why everyone moves to Florida and Arizona when they retire. They sell their overpriced home and move to a place with 1/2 the cost of living. At least that is how it is in the northeast. And yes, it's completely retarded.
"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
-Sh1fty-
plundering yee booty
+510|4968|Ventura, California
Sarah Palin 2012
And above your tomb, the stars will belong to us.
RTHKI
mmmf mmmf mmmf
+1,726|6231|Oxferd Ohire
god i hope not
https://i.imgur.com/tMvdWFG.png
13urnzz
Banned
+5,830|5991

RTHKI wrote:

god i hope not
i hope she wins the nomination.

i really do, and i hope this sub-forum is still up when she does.
-Sh1fty-
plundering yee booty
+510|4968|Ventura, California
Well, it's pretty hard to screw up more than Obama, at this point I would take just about anybody else. Actually no, I'm wrong, Obama is pathetically indecisive from what I've seen and heard him do. I'd hate to see some more hardcore liberals take over.
And above your tomb, the stars will belong to us.
11 Bravo
Banned
+965|4731|Cleveland, Ohio
shifty is a mod account
Spark
liquid fluoride thorium reactor
+874|6169|Canberra, AUS

burnzz wrote:

RTHKI wrote:

god i hope not
i hope she wins the nomination.

i really do, and i hope this sub-forum is still up when she does.
i hope so too, being nice, safe and secure ten thousand miles away.
The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
11 Bravo
Banned
+965|4731|Cleveland, Ohio

Spark wrote:

burnzz wrote:

RTHKI wrote:

god i hope not
i hope she wins the nomination.

i really do, and i hope this sub-forum is still up when she does.
i hope so too, being nice, safe and secure ten thousand miles away.
pfffftt  brits tested nukes on your island
-Sh1fty-
plundering yee booty
+510|4968|Ventura, California
What exactly don't you all like about Sarah Palin?
And above your tomb, the stars will belong to us.
Hurricane2k9
Pendulous Sweaty Balls
+1,538|5196|College Park, MD
she's not intelligent and is the kind of chest-beating person who would probably start a war against anyone who looks at us funny
https://static.bf2s.com/files/user/36793/marylandsig.jpg
Spark
liquid fluoride thorium reactor
+874|6169|Canberra, AUS

11 Bravo wrote:

Spark wrote:

burnzz wrote:


i hope she wins the nomination.

i really do, and i hope this sub-forum is still up when she does.
i hope so too, being nice, safe and secure ten thousand miles away.
pfffftt  brits tested nukes on your island
think they performed a few nuke tests in nevada too. but yeah.

but hey, it's mostly useless desert anyway
The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
11 Bravo
Banned
+965|4731|Cleveland, Ohio

Spark wrote:

11 Bravo wrote:

Spark wrote:


i hope so too, being nice, safe and secure ten thousand miles away.
pfffftt  brits tested nukes on your island
think they performed a few nuke tests in nevada too. but yeah.

but hey, it's mostly useless desert anyway
nevada?  so what?

oh nvm
Spark
liquid fluoride thorium reactor
+874|6169|Canberra, AUS
was talking about central aus
The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
-Sh1fty-
plundering yee booty
+510|4968|Ventura, California
Well, why isn't she intelligent? I'm not defending her, I'd like to know what's she said and done that makes her so "stupid."

As for international relations, I'd appreciate it if countries knew they shouldn't fk with America if they don't want to be fked in return.
And above your tomb, the stars will belong to us.
Spark
liquid fluoride thorium reactor
+874|6169|Canberra, AUS

-Sh1fty- wrote:

Well, why isn't she intelligent? I'm not defending her, I'd like to know what's she said and done that makes her so "stupid."

As for international relations, I'd appreciate it if countries knew they shouldn't fk with America if they don't want to be fked in return.
are you willing to die for a chest-beating exercise?
The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
Hurricane2k9
Pendulous Sweaty Balls
+1,538|5196|College Park, MD
there was the whole "what newspapers do you read" debacle in '08 that made me lose any shred of confidence in her

Last edited by Hurricane2k9 (2011-03-08 21:09:23)

https://static.bf2s.com/files/user/36793/marylandsig.jpg
11 Bravo
Banned
+965|4731|Cleveland, Ohio
which mod/former mod is shifty?

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