Which do you trust, social security or your 401K?

[hedgehog]

My grandmother lost the money she's invested back in 1929, my dad's shares were wiped out by some creative book keeping when his employer was enveloped by a conglomerate, somehow I just don't believe that the money in my 401 K will be there in 20 years. On the other hand, no one in my family has missed even a single month's check from Social Security.

[MercutioATC]

1. Other: Both

My 401k will be what I live on, but SS will be fine for a looooong time, even if it remains unchanged.

Even the most dismal estimates have SS running fine until 2040...after that, benefits would have to be reduced and/or contributions increased.

[RaleighNCDUer]

2. Between 2000 and 2003 my fledgling 401k lost half its value, and

every cent that went into it in those years.

My SS balance continued to progress that whole time.

The only reason SS might not be there is if neo-con/neo-lib politicians push through privitization which will, in effect, turn it into a 401k and vulnerable to what happened from 00 to 03.

[Yupster]

4. What's a social security balance?

Your premiums you pay in each month go right out to a currently retired person.

You have a projected benefit, not a balance.

[hedgehog]

7. Somehow FDR managed to send out the checks in the middle of the

Depression. I wouldn't worry about you getting your check in the future.

[Yupster]

9. I'm not worried at all

I'm sure social security will be fine, but what's a social security balance?

Do people think there's an account at social security with their name on it gaining interest each year and receiving your premiums.

That's not how the program works. We pay for current retirees and our grandkids and kids will pay for ours.

[hedgehog]

11. OK - you do know how it works, then

You'd be amazed at the number of people who wil repeat that information and then expect you to denounce it as a scam. Of course it works that way! It's the one way to ensure that retirees get a piece of the economy no matter how it expands or if inflation strikes. I'd rather have a guaranteed small piece than take a chance at double or nothing!

[RaleighNCDUer]

13. What's a SS balance?

A misnomer, I know. But you are wrong in saying that everything we pay in goes right back out to pay someone else's benefit. The SS administration is bringing in more each month than it pays out in benefits, including retirement, SSI and death benefits. That excess revenue was supposed to be put in trust for when the boomer retirement outstrips the post-boomer pay in, but of course it has been stolen, er, borrowed against by every president since Reagan.

But yeah, I was talking about my projected benefit, assuming Hillary doesn't become president and give it all away to wall street.

[Mojambo]

3. I don't have a 401K

So I'm scoping out freeway overpasses for prime real estate if SS doesn't come through.

[kineneb]

10. neither do I

Hubby had one, which had to be cashed out for him to get medical coverage. I don't even have enough work units right now to get SS on my own; I will have to rely on Hubby's when I reach 67 (in 2025). (Poor Hubby will probably not make it 5 more years to 65, his health is too fragile.)

I don't think I will have to check out freeway overpasses- never mind the county only has about 3 or 4. The double-wide mfg. home has a very small mortgage payment, cheaper than any rents, so I will be staying put.

I have room in the back yard, Mojambo, and there are lots of empty vacation homes for sale around here (which may be in forclosure soon)...

[bullimiami]

5. Other. I dont particularly trust either. The govt has its hand in every cookie jar.

And I dont trust them anymore.

[Yupster]

6. Both

My wife and I have over $ 500,000 in our IRA's and 301 (k's) so far. It will dwarf anything social security will provide to us, though we won't turn down the $ 2,000 per month we'll get between us from social security.

[bonito]

8. LOL I had to go the cat food route

[Joanne98]

12. Cheap Chinese stocks are hot!!!!!!

But I wouldn't invest in American companies. They are all crap and the dollar is worthless! SS is a way more secure.

[RB TexLa]

14. Then invest in Pacific rim markets

[Dark]

15. Both.

But you need to keep an eye on them.