{ "media_type": "text", "post_content": "You should be able to opt out of social security taxes and as an alternative be required to contribute the same amount of money to your 401k.", "post_id": "61c5ddd7a8b36b002db5eb70", "reply_count": 39, "vote_count": 14, "bowl_id": "5e8656b80bdab1002a7355dc", "bowl_name": "Confession ", "feed_type": "bowl" }

You should be able to opt out of social security taxes and as an alternative be required to contribute the same amount of money to your 401k.

likesmart
Posting as :
works at
You are currently posting as works at
Highlighted IconHIGHLIGHTED

In my ideal world, social security would turn into a 401k style scheme (more specifically, just an expansion of the existing Thrift Savings Plan) where the government backstops your contributions (e.g. if you contributed $400k over your career, then the feds would guarantee $400k in your payout, a la FDIC insurance). There are no real downsides compared to the existing scheme as far as I'm concerned, only upsides, either for individuals or for the government. Individuals would be in control of their retirement funds and be able to direct their investments and the feds would be off the hook for payouts unless there's a severe market downturn when retirees start drawing on the annuity.

smartlike

Ok, and a market crash that hits a bunch of really really crappy investors about to hit forcible retirees? I mean, the system isn't there to be efficient. It's there to address the problem of old people dying on the streets after getting too old/feeble to continue working. This isn't a bad idea, but it is a bad idea for the true problem statement. Unless we really do expect that the average American understands how to manage a 401k. (No, we don't. We can't even convince college-educated Americans that crypto is just speculation and have people "investing" in that)

It seems many are missing some of the other benefits of social security. Given there are no other inflation indexed annuities available it is the best longevity insurance available. The survivors and disability benefits are also important to retirement planning for a couple. Retirement planning would be a lot harder without the core social security income. It also isn’t going away. If nothing is done, benefits will be cut 24%. This is a highly unlikely outcome though. My wife and I will be able to spend significantly more knowing we’ll have 68k as a couple or $40+k in todays $s available if we are lucky enough to live to 110.

like
Recent IconRecent

Oh boy. Big 4 really always picks the brightest and smartest. What you are proposing is „everyone for themselves“, with mandatory savings. Which misses the point of social security - protection for everyone, financed by taxing ppl by how much they can contribute, rather than based on how much they might get out of it. Sure- sounds unfair at first, but gives you a whole society to live in. But hey, if you wish for it… also very classy to ask for it on Christmas - maybe study up on what you are celebrating there

like

BCG2 - fully agree. I get the point that social security systems can be inefficient, but is sooooo much better for everyone if they exist. What people always forget is that social security really really drives the economy - because otherwise everyone has to save themselves for emergency instead of investing or just take risks like start a company - which also helps the economy

like

What makes the program successful is the fact that it’s for everyone, rich and poor. So what you’re proposing would really hurt it

like

People were far less selfish when it was passed. We couldn’t recreate a program like that now.

like

There are people like me who don’t even get back the Social Security amount that we pay being a non immigrant in the US as the pathway to GC/Citizenship is next to impossible for people from South Asia 🥲

like

If it makes you feel any better I’m a born and raised American citizen and pay SS tax and likely won’t get anything back either given I’m 25 and SS is likely gonna go bust by late 2030s

I agree there should be some individual/self managed alternative to social security, but if you let people opt out, the Ponzi scheme collapses. If social security becomes insolvent, they either have to reduce benefits (and possibility write an IOU for the remainder) or get a cash infusion from the federal government

like

I agree. It’s unfair that someone who’s worked hard and been disciplined their entire life can’t benefit from their contributions while someone who may have made bad choices gets to reap all the benefits.

like

This is such a terrible take. Do you directly benefit from every tax dollar you spend? No, but you indirectly benefit from most of them. Should childless people not have to pay the portion of taxes that funds schools? Should agoraphobes not have to pay the portion of taxes that fund roads? Should criminals not have to pay the portion of taxes that fund police? We’ve decided that there are some costs that come with living in a society

smartlike

I can understand why you’d want this. You think it should be our own responsibility to take care of ourselves when we retire. Why stop at this social program? Should we stop providing Medicare/Medicaid so only people who have employer-paid insurance can go to the doctor? Or we should stop providing federal grants as saving up for college should be our own responsibility.

like

You’ve been contributing to social security all your life, and now you’re trying to opt out of receiving that money?

Related Posts

What is the case against rolling over a 401K into IRA after leaving a job?

like

Can someone explain to me the benefits of maxing out the 401k versus contributing to a non-IRA brokerage account? I would assume the latter would be beneficial since I can have access to finds as needed and my 401k is a Roth. I'm in my mid 30s married with no kids

like

Any ideas for a second career for a high school counselor? I plan to retire at 60 this year, but will need a job to supplement my retirement income until I get social security.

Isn't the US markets due for correction - my 401k 90% invested in Stocks. Should I be concerned ? I think if the market goes down - dollar cost averaging should compensate through more units that can be bought. Is that a correct understanding?

like

AA needs to retire the Embraer 145. No first class??

like

Does anyone know what to do to deal with the pension taper tax in the UK? Opt out of pension scheme altogether or is there an optimal amount you can put in and not get the tax charge? So confused.

Just curious how is the A&M model able to afford the compensation that is being quoted.

like

what is the difference between a Roth IRA and the Roth I contribute to as part of my 401k? As a 24yo, should I have my own Roth IRA and contribute the full 6k? Any and all advice is appreciated

like

I don’t know who needs to hear this, but... -Buy used or cheap cars, nobody cares how ~sick~ your car is. Once your net worth is $1M+, buy whatever new car you want -GET YOUR EMPLOYER 401k MATCH -If you are not investing money, you are losing money (2% inflation per year) -Investing is not only for rich people & is not difficult. Google “total stock market index funds” pick a few, buy them every month, and HOLD ON TO THEM -Everything about personal finance can be learned on YouTube

likefunnyhelpful

If you were in the beginning of your career (make less than 100k) and in HCOL area, how much were you able to save after maxing out everything (401k, HSA, roth, etc)?

like

What % of your paycheck do you contribute to your 401k?

like

For people on H1B, is it a good idea to put money in 401k ? Please provide knowledge on this.

Despite all logic, that I should just buy and hold, I really feel like reallocating my 401k to cash.

like

How much do you have in savings (cash, 401k, etc.)? And how old are you?

likehelpfulfunnyuplifting

Hi! I just created a FIRE plan to retire in 10 years. Who have y’all collaborated with regarding your FIRE plans? Any recommended financial planners or advisors? Websites or calculators?

like

With your current salary and expenses, how much are you saving monthly (not 401k)?

like

Do y’all get moved around from hall to hall? I’ve been moved so many times. I have 2 more years until I can retire.

If anyone is interested in learning more about personal finance please let me know. My friend and I are teaching a class tomorrow night where we discuss all aspects of personal finance. We’ll cover 401k, IRA, Roth, debt, ETFs, savings, budgeting, etc. Class is $25 and we offer a 100% money back guarantee if you don’t learn anything from our class. If this interests you please PM me and I’ll send you the details.

like

Is there a way to get PwC 401K managed outside of PwC but still gets the match?

like

Is contract to hire as a software developer legit or never happens after the contract is up? Would u ever leave your full time job with benefits and 401k for a contract to hire scenario these days as say a mid level to senior full stack developer? I have a family and am taking on a mortgage soon.... regardless of contract length I'm just looking to see what people's insight is

like

Additional Posts

Living it up in the city.

Do you see this post? 12:59am

Hate conference calls that drag on for hours.

Make sure your hard work is protected. File or register with the U.S. Patent and Trademark Office or U.S. Copyright Office before it's too late. Complete our easy questionnaire and we'll help you quickly submit your application. Use your INNOVATOR code for 10% OFF.*

My company is now displaying!

like

test post from test

like

Correct font and company!

like

Comment on this to test rereply notif

Post to test

like

No company displaying!

like

Post new user

like

Post for likes! 😤

like

Top top post!

like

Ahh it is posting but into middle of feed as opposed to top.

like

How great would office emojis be in this app?

like

Hdjdjjdjd f hdjdjdjdhjd djdjdjjd d djdjdjjd bend djdjdjjdjjd djdjdjjdjjd djdjdjjdjjd djdjdjdjjdhdhdhdbbd djdjjdjdjdjdhje djdjjdjdjdjdhje djdjjdjdjdjdhje djdjdjjd djdjdjdjjdhdhdhdbbd djdjhdjdjdjdhdhhdj

like

Fhhbbbbjjnnnnnnsn dnnsndjjjd dhjhdjjdjdjdjnd dhjhdjjdjdjdjnd djjfjdjjdndndnnfnd dhjhdjjdjdjdjnd dhjhdjjdjdjdjnd djjfjdjjdndndnnfnd djjfjdjjdndndnnfnd now djjfjdjjdndndnnfnd do. D dndnnfndnnsdhjdjdjdjnd

like

Post with company

like

Looking at my state income tax summary. Now I understand the attractiveness of TX and FL...

like
like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal