by RayAmerica ➕follow (0) 💰tip ($0.10 in tips) ignore
Comments 1 - 14 of 14
Investors in US Treasuries would also be dismayed to learn that the money is gone, spent, by the USG.
Get a Roth IRA and max it out.
The funny thing is if you have other investments, you end up paying social security back in April
I agree with this. There's been such a push for Roth Roth Roth and I don't think it's the sweetheart deal people think it is vs tax-deductible. If I'm making more money now and have greater liabilities and expenses, save the money on taxes now. When I retire, I should have my house paid off, kids are gone and on their own, and my expenses should be a LOT lower thereby requiring less income to live, which means lower taxes. By all means though, do both if you can.
I did the Monte Carlo thing with Roth. The way you come out ahead in the long run is if you have a significantly larger tax burden in the future than when you paid into the Roth, and if your Roth investments do very well. However, your tax burden could decrease if your are drawing down your money in small amounts from the savings at lower rates, anyway. It is kind of a zero sum game that gives the government more tax money now for deferred maybe?? benefits later. Long run for a short slide. I wouldn't put it into a Roth until you have funded other tax deferred retirement resources to the max.
Below is a very realistic, brief summary of 'Social Security.' It's just another example, among many, that illustrates the utter ineptitude of the Federal Government. If nothing else, you'll know something that not 1 in 100 Americans know anything about!
Social Security Taxes Aren't "Your" Money ... by Ryan McMaken of the Mises Institute