7 Sep 2022 3:30 pm
Why not Shondra? Why it gotta be a patty name?LibDave » 07 Sep 2022, 2:54 pm » wrote: ↑ Perhaps. There are differences. My opinion is there is no break even point. Which is why i consider it more of an entitlement. Entitled at a certain age. Government funded. Loses money.
For example, if you consider SS to be a sort of insurance policy for the event you reach old age then it could be compared to a retirement account. However, a major difference is a retirement account remains yours and is passed on to your heirs when you die. The rules regarding survivor benefits are ridiculous in comparison with a retirement account. I'm familiar with these as I worked with a friend of mine with 6 children who was widowed. We'll call her Debbie.
Das physical conservatizum.LibDave » 07 Sep 2022, 2:54 pm » wrote: ↑ Debbie had 6 children with her husband. Her husband died of Non-Hodgkin's Lymphoma before either reached retirement age. She didn't work and was a stay at home mom. Survivor benefit rules meant she was entitled to 50% of her husbands eligibility for 18 years. Of her 6 children (1 adopted) only 1 was still below the age of 18. Surviving children over the age of 18 receive no benefits. Each child under age 18 can receive a portion of the remaining 50% up to 1/6th of the benefit amount until age 18. So in Debbie's case her husbands benefit was about 18,000 per year after paying in for 40 years. We'll call it 20K/year to make it easy. So Debbie gets 10,000/year for 18 years and her 11 year old daughter gets 1/6th of that for 7 years until she turns 18 or about 1,700/year. All told, 11,700 for 7 years then 10,000 for 11 or about 190,000 over 18 years if she lives that long. Yet at just 2% rate of return it would be over twice that much.
I's all for mo'.