Friday, December 16, 2016

Republicans introduce Social Security reform bill with modest means testing

Republicans are considering a Social Security reform bill that raises the retirement age to 69, and gradually means tests benefits, especially for some spouses and dependents, apparently even for some current retirees.  But the means testing is “mild”:  it would eliminate COLA increases for singles earning over $85000 and couples over $170000 a year.

Criticism says that it places the burden of funding on the poor and middle class (often unaware of the actuarial  math when voting for Trump).

The bill was introduced by Rep. Sam Johnson (R-TX).

It’s called the “Social Security Reform Act of 2016”, Johnson’s link . It is supposed to add 75 years of sovereignty to the Social Security Trust find.

The story by Sarah MacManus appeared in Bipartisan Report.

Thursday, December 01, 2016

Filial piety has some limits; don't let your parents be reckless with money

In a column today (which I note is World AIDS day) Michelle Singletary, “The Color of Money”, comes out for filial piety by saying, “I absolutely believe that we all should be on standby to assist relatives in need”.   Take care of your own first.

That’s all in a column today, “Don’t let your parents drag you under financially”.  Singletary gives a couple of narratives of how parents became spendthrifts.  In one case, a parent declared bankruptcy after getting dental implants when dentures might have sufficed.  (Complete implants typically cost over $60000, spent over several months).   Were the adult kids on the hook for the bankruptcy? Probably not, but state laws can be tricky.

Many people just don't get the mathematical idea of compound interest, the stuff of middle school algebra tests today.  You're money lasts a lot longer if you avoid debt altogether.