Originally Posted by
Joe Bauers
SS needs to be fixed. A guy with $5 million in his 401k taking let's say $300k a year out gets his full SS payment. Now let's look at someone living on their SS check. If they take a job to try to make ends meet their SS is reduced if they make more than approximately $18k a year working. I saw this happen to my mother.
Same thing with rental income. I know a guy with 300 doors in his rental portfolio and he brags about still getting the full SS benefit.
So, yeah, if you're rich you shouldn't get SS benefits but you should still pay for it.
Your example includes two individuals who paid into the system who now receive benefits. The benefits received are reflective of their contributions.
The third example receives SS and income from working. That's the insurance portion of the system protecting from homelessness and starvation. How much insurance should be provided? New car, used car, public transit?
SS is an insurance policy based on the premiums you paid. It's not a system for redistribution of earned income.