Social Security is $70.40 short
By Jim Dallas
While working as a substitute teacher, my employer (Galveston I.S.D.) diverted money that would have gone to Social Security to an alternative program.
This is, of course, legal and encouraged by the federal government; State and local employees can opt-in, but they're not automatically part of Social Security like most workers. But it isn't at all helping the long-term finances of Social Security.
Changing this is yet another way to improve OASDI finances without cutting benefits, as the President proposes.
P.S. Actually, after checking this, I see my 457 account has accrued $1.49 in earnings since June, when I hung up my hat. Obviously, I am on my way to being a zillionaire; Boca Raton, here I come!
Posted by Jim Dallas at January 23, 2005 04:48 PM
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You've got to be doing something wrong. My 401K has gone up $6K since our President's speech at the RNC. That's without any contributions too. Our company allows us to take out loans from 401K funds that you pay back from each paycheck for whatever time frame you set up (36 months for me). There is a 6.25% interest rate on the funds, this interest is paid to your account. So I've been able to roll some credit card debt into my 401K and save the finance charge and pay myself interest to boot. Its real nice to pay yourself interest for debt and it builds your retirement up.
Believe me I'm looking forward to some tweeking of social security. I surely want to see whatever funds are there for me grow more than the 2% it grows at now. Think about it, whatever moneys placed in social security for the last 36 years of your working life never doubles in value. So if your 26 to 32 years old and working, from that time forward your money paid into this program will never double. Got to do something about this.
Market ups and downs happen, generally its gone up historicly.
