MONEY: The political counter-party risk in Social Security

Wednesday, May 8, 2013

http://www.obliviousinvestor.com/the-political-risk-of-delaying-social-security-until-70/

The Political Risk of Delaying Social Security Until 70
via Oblivious Investor by Mike on 5/6/13

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Some people argue that holding off on claiming Social Security is akin to betting that there won’t be any rule changes. I don’t think that’s true. While certain Social Security reforms would make it advantageous to claim earlier, other reforms wouldn’t change the decision at all, and others could actually make it more advantageous to delay claiming benefits.

The five potential Social Security reforms that I see suggested most often are:

Increasing or eliminating the payroll tax cap,
Increasing the payroll tax rate,
Increasing the full retirement age,
Means testing benefits in some way, and
Switching from regular CPI to chained CPI for calculating cost of living adjustments.

*** end quote ***

One would hope that once you begin to collect that “they” won’t change the rules ex post facto.

We now that they can and do (i.e., the taxability of benefits).

But the Sheeple and Clover let them get away with it.

Argh!

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MONEY: Roth IRA Conversions are problematic?

Wednesday, February 22, 2012

http://mortonlaw.typepad.com/my_weblog/2012/02/roth-may-become-more-compelling-planning-option.html

February 13, 2012
Roth may become more compelling planning option

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If the current proposal before congress to eliminate the stretch IRA provisions from the tax code go into effect, it presents an even more compelling reason to convert traditional IRA’s into Roth IRA’s.  While most people are reluctant to pay taxes now on a tax deferred account, the ability to pay taxes now under current rates, rather than under future rates which are likely to be higher.  Now with the potential loss of the ability of beneficiaries to stretch withdrawals when they inherit, thereby paying the taxes on the account within 5 years of their inheritance, the case for the Roth becomes more compelling.

*** and ***

Their growth and distributions would be tax free – unless, of course, congress eliminated the tax free character of the Roth IRA.  But they would never break a promise like that (unless, of course, you count their original promise not to tax social security benefits).

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Wow, even more cynical people.

Converting to Roth now ENSURES that a tax is to be paid. Waiting MAY cause a higher tax to be paid.

What’s the time value of money in a zero interest rate environment?

That argues BOTH ways.

* Since money today has ZERO value, why not pay the tax (i.e., there is no better use of the funds; the NPV of the tax loss in the future is huge; confiscation of IRA / 401Ks for the “enhanced socsec benefit)?

* Since money today has zero value, why not try to convert it into something that will become valuable (i.e., real estate; gold; dividend paying growth stock)?

Pretty good argue with myself and lose twice.

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NEWJERSEY: Toll increases ARE a tax increase

Thursday, January 5, 2012

http://blog.nj.com/njv_paul_mulshine/2012/01/this_toll_hike_could_be_just_t.html

This toll hike could be just the beginning
Published: Sunday, January 01, 2012, 2:09 AM
Paul Mulshine/The Star Ledger

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In 2001, a guy by the name of Bret Schundler was running for governor. The Republican candidate’s platform called for the immediate removal of the Garden State Parkway tolls.

His Democratic opponent, Jim McGreevey, said he’d get rid of the tolls as well, but it would take seven years.

Schund­ler as much as called him a liar. “If I win, tolls come down; if I lose, we get high-speed E-ZPass,” he said.

McGreevey won and proceeded to prove himself a liar — in what may be record time for even a Jersey pol. The day after he took the oath of office, McGreevey went on 101.5 FM and told a caller that he had no intention of keeping his promise to remove tolls.

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This is news to “We, The Sheeple” / Nu Jerzee subset!

Anyone who thinks that either side of the duopoly can be trusted is sadly delusional.

And the politicians and bureaucrats are perfectly happy if “the cost of collecting that toll can easily exceed the toll itself.” The bureaucrats get paychecks and the politicians get loyal voters in those bureaucrats. No corruption in that!

Wonder if some one can figure out the percentages. What percentage of NJ voters are “voting under the influence” of the Gooferment money.

There’s interesting anecdotal stories that Teachers’ Union SPOUSES run for school boards where they live; not where their spouse teaches. No conflict of interest, right? Until you realize that rasies won in one district become the norm in others.

Could it be that we have more than 50% of the voters who have “a dog in the fight”?

No wonder “we” just can’t win!

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