28 comments to “First Baby Boomer Applies For Social Security — Let The Games Begin”

Baby Boomers and Social Security — Let the Games Begin | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments on October 15th, 2007 at 6:24 pm said:

• [...] A watershed event happened a few hours ago. It will, hopefully jolt millions of Boomers into ending their journey down the River of Denial. Let the Games Begin. [...]

minimum wage on October 15th, 2007 at 7:07 pm said:

• It was originally contemplated as a temporary program, but that was largely forgotten by the end of WWII, and the post-war boom kept it off the radar screen.

  As a low-income boomer, I am keenly aware that privatization is the ONLY fix which is not highly regressive. Low-wage workers will get massively hosed if the retirement age is increased, if taxes are increased, or if benefits are cut.

  I have not done a thing to prepare for my retirement – my standard response is, How much do you expect someone with student loan debt and a minimum wage income to save and invest?

BawldGuy on October 15th, 2007 at 7:50 pm said:

• Minimum wage – I get it.

  Here’s another interesting fact about FDR’s ‘temporary’ program. He picked 65 as a retirement age because at the time, the average life expectancy was…..here it comes…..64.

  As a ‘low income Boomer’ you have indeed been put between a rock and a hard place. Add the debt, and the picture can’t be bright.

  It depends on your age today. I might be able to offer you at least a little helpful advice if I new your age.

Minimum Wage on October 15th, 2007 at 8:06 pm said:

• Let’s say I am 50. Which is to say I don’t think Social Security will be bankrupt by the time I reach retirement age, but I expect I will have to continue working.

BawldGuy on October 15th, 2007 at 8:22 pm said:

• MW – I suspect you’re right. At 50 you have at least 17 years, (as it’s my understanding your age group will now wait until 67) to remedy your dour looking retirement.

  By making use of what you judge to be some of your personal strengths, you can find part time work in a ‘commission only’ industry. They’re everywhere.

  This will allow you to work your own hours, when you can, to earn extra income. You can do some pretty impressive positive ‘damage’ to debt, while increasing your outlook on retirement.

  I personally know of a woman in the midwest who, as a single mother of two, took a job in sales, which paid no hourly wage, just commission.

  In 20 years she not only got both kids through college, she was able to invest. This resulted in a modest, but livable retirement – far and away better than was facing her 20 years earlier.

  Furthermore, how do you think her kids treated her? Pretty dang well. Since they both had professional careers, thanks to Mom’s hard work and perseverance, they gladly helped Mom out when needed.

  What could you do?

Cher on October 15th, 2007 at 9:47 pm said:

• It’s never too late and B.G, your advice to get a second job is a good idea.
  I’m counting on my SS to be spending money. I’d be disappointed if the social security office decides that those of us that satrificed by forgoing the Lexus, the plasma t.v and the cruises to save for the future are too wealthy at retirement to be eligiable for SS.
  Would the government pull a fast one lke that?

Minimum Wage on October 15th, 2007 at 10:00 pm said:

• SOMEBODY is going to get hosed – short of privatization (which seems politically infeasible) it’s not possible for everybody to win. Either the wealthy will get hosed, or the comfortable middle class (those who lived frugally and invested), or the working poor will get hosed. As a pessimist, and as a political realist – the poor don’t have well-paid lobbyists – I think the working poor will be the ones to get hosed. Unfortunately, hosing some other group isn’t sustainable, so I think the poor will get hosed in any event.

BawldGuy on October 15th, 2007 at 10:20 pm said:

• Cher – Your question is wicked funny and seemingly prescient in it’s implications.

  That’s my best William Buckley imitation.

BawldGuy on October 15th, 2007 at 10:24 pm said:

• MW – Politicians only hose those who can demonstrate they have something of value which can be plundered. That pretty much leaves the poor in relatively safe environs.

  On the other hand, since there are more poor folks, if they vote…

  Of course for them to have a real, and lastingly positive impact, they’d have to figure out their vote to ‘hose’ the ‘rich’ is a short term game.

  The next time the poor figure that one out – will be the first time.

Brian Brady on October 15th, 2007 at 10:43 pm said:

• http://www.mortgageratesreport.com/2007/10/16/first-baby-boomer-gets-social-security-retirement-benefits#more4710

  I don’t know how to use the trackback on my new blog, Jeff.

  An excerpt, discussing the pitfalls of 401-k plans as the answer:

  That is just what the government wants. It allowed the government to “bank” taxes to supplement a dwindling social security system. It further sets up a potential benefit reduction for middle income retirees (which I believe is coming). The government will harvest taxes in the next 40 years and potentially reduce benefits to retirees who draw on those accounts. It is essentially the perfect storm and it was carefully constructed to deal with the Boomer retirement problem.

BawldGuy on October 15th, 2007 at 10:53 pm said:

• Brian – your piece is way too good for a comment.

  Folks reading this – click on the link in Brian’s comment, and I guarantee you won’t be disappointed.

  401(k)’s and IRA’s are the gov’t Trojan Horse of all time – against it’s own people.

  I’ve been shouting this from the mountain tops until my lungs have almost given out.

  I’m writing a post on the subject for publication no later than tomorrow.

  READ BRIAN’S LINK.

Minimum Wage on October 16th, 2007 at 9:10 am said:

• On the other hand, since there are more poor folks, if they vote…

  Of course for them to have a real, and lastingly positive impact, they’d have to figure out their vote to ‘hose’ the ‘rich’ is a short term game.

  The next time the poor figure that one out – will be the first time.
  ———————————————–

  No, I think they’ve figured out that politically they cannot win in the long run. That’s one reason they have the lowest rate of voter turnout. They tend to be geographically concentrated and can get a few people elected but not enough to make a long-term difference. They also are not plugged into print media – like the middle class is, so they face what might be called an information shortage – and what information they get comes from television and radio (which is why there are so many crummy political commercials) and poorly informed peers. Whenever the interests of the poor are actively opposed by any other interests, the poor almost invariably lose.

BawldGuy on October 16th, 2007 at 9:48 am said:

• MW – I see where you’re coming from, and it’s been the poor’s long term anchor, keeping them where they are.

  As long as poor, (and I’ve been poor) believe A) It’s somebody else’s fault they’re poor and B) The ’system’ is against them – they’ll die poor.

  Either we believe we’re the captains of our own individual destinies, or we’re pawns in a game in which we have no control – so what’s the use?

  The folks in the ‘A’ group make their way to a better life, while the folks in group ‘B’ remain poor while complaining the whole time how it’s not their doing.

  We’re all, no exceptions, where we are today due precisely to all of the decisions we’ve made up ’till now.

  Past bad decisions don’t doom us to a life of misery. We can turn the page merely by making the conscious decision to do so. Before we know it, we’ve made years of good decisions resulting in a much improved lifestyle.

  Until those who are not where they wish to be financially, look into the mirror and see who’s responsible – nothing will change.

  There is no magic wand – except the one in our heads. Our minds can create what we truly desire – if we’re willing to pay the price.

  Those who remain poor their entire lives have decided they don’t wish to pay the price required to lift themselves to a higher place. Their excuses are merely self-applied salve to avoid the truth of their situation: They’re where they are due to their own actions, and sometimes more importantly, their own dearth of action.

  Our country was FOUNDED upon the freedom to be what you’re capable of being.

  To those for whom hope has waned, I encourage you to take stock, and encouragement in this universal truth: You can be better off simply by making a decision – then another one, and another one – until your life has been transformed.

  Where do you want to be in five years? Decide where that is, discover the price in terms of your time and actions – and make it happen.

  Pay the price, and I guarantee your success.

Rhea on October 16th, 2007 at 11:34 am said:

• The vastness of the baby boomer generation hasn’t been a secret, yet no one thought, until now, to formulate a plan to make Social Security work. What gives?

Robert Coté on October 16th, 2007 at 11:46 am said:

• In 1967 when my dad sat me down and explained it the (limited) benefits started at 57 1/2 and full beneifts at 65. He showed me how by the time I was to retire the full qualification age would be 72 1/2. Here we are 40 years later and sure enough there’s no reason to belive he weasn’t wrong. My grandfather made 3 monthly payments to FICA (the NE Bell telephone system was outside SS for many decades) and my grandmother collected for 35 years thereafter. My dad self-employed paying double his whole life died the very day his letter outlining his benefits starting the very next month arrived. FICA is a 15.2% income tax, nothing more.

BawldGuy on October 16th, 2007 at 2:05 pm said:

• Rhea – You’re absolutely correct, and your thinking is rational – way too rational for congress I’m afraid.

  They knew also, but it would let the cat outa da bag if they actually faced the music. They’ve been robbing from the SSA account for so long they now look at it as THEIR entitlement.

BawldGuy on October 16th, 2007 at 2:22 pm said:

• Robert – perfectly put.

  My grandfather passed away in his sleep 10 days before his retirement.

Michael Cook on October 16th, 2007 at 6:05 pm said:

• Jeff,

  You are certainly a champion for the boomers. I dont have any notions of SS even being around when I retire, so if you get it you will probably be better off than my generation.

  Are we stopping to ask why there is no money though? The government spent years using SS as their personal piggy bank. As a die hard Democratic, I probably bear significant blame for that, though Big Spender George Bush has taken some of the heat off of me.

  While I think a lot of boomers out there have a very real problem to deal with, it is even worse for Gen X,Y (me), and the Echo Boomers. We dont have a choice. Not only do we have to save, but we have to choose our vehicles very carefully for tax purposes. Save too much pre tax and we get hit hard (perhaps harder than if we saved after tax). Its sad to see my parents having to start new careers after retirement.

Chris Lengquist on October 16th, 2007 at 6:14 pm said:

• I own rental property. That way if SS is there I get it. If not, I don’t worry about it. End of my story…at 42 I’m smart enough to figure this out.

  Now if all you Baby Boomers would quit wasting your money on leased luxury cars and homes too big for your family maybe then you can have a savings account, too.

  I’m sorry, did that sound harsh? I guess that is what happens when you realize you’ll be paying in your whole life while those before you fight to raise your taxes so they can live comfortably despite the wasteful excess the threw about so carelessly.

  I better stop here…

BawldGuy on October 16th, 2007 at 7:12 pm said:

• Michael – I have no more confidence than you do in the continued existence of SS. Yeah, the Dems are far more culpable for this fiasco, but the other guys are far from clean on this. On paper, if you didn’t know his name, you’d swear, when it comes to domestic spending, President Johnson had been magically put back into office.

  Seriously? Once we get away from taking fish from the haves to keep giving to the have nots, and start teaching the have nots to fish…..

  As far as the younger generations – in the end they’re either gonna plan for their retirement or not. The more things change, the more they stay the same.

BawldGuy on October 16th, 2007 at 7:13 pm said:

• Take a little wider stance on that soapbox Chris. You’ll fall.

Minimum Wage on October 16th, 2007 at 10:15 pm said:

• Hmmm, I’ve never wasted my money on leased luxury cars or too-big homes. (I’m living in 300 sq ft now.) I can’t think of bad decisions – I stayed in school, got excellent grades and test scores, never did crime or drugs or any of that culture-of-poverty stuff. I’d like to own rental property instead of being on the wrong end of the transaction. Where do I sign up?

Chris Lengquist on October 17th, 2007 at 6:23 am said:

• I like to blame Boomers. Because in many ways they have always thought of themselves as the “important” generation. Remember, they insisted they would change the world. Well, they didn’t. They just expanded on it’s problems.

  Knowing that you are one of “them” I will get arguments.

  Lack of planning or achieving goals is not relegated to any particular generation. (With the possible exception of the WWII guys…what they accomplished was amazing.) The Boomers were just so large that there will be consequences lasting generations.

BawldGuy on October 17th, 2007 at 9:11 am said:

• Boomers haven’t turned out the way their Greatest Generation parents had hoped. Though I wasn’t a part of the 60’s movements, many of our problems originated from that decade’s fertile soil.

  The main problem, as I observe it, is the carefree attitude that survived the ’60’s. Their parents so wanted their kids to have it better than they did, the kids, at least many of them, appear to have grown up with a sense of entitlement.

  As they’re approaching retirement age, a large segment of them are beginning to realize the only ‘entitlement’ they’re gonna get is SS – and now maybe not even that.

  Lack of planning is their enemy. This is why I pound the concept of Purposeful Planning so much. Those who have planned are looking forward to their impending retirement with a smile on their face and a song in their heart.

  No SS? All that means is a little less spending money in Europe this year.

Minimum Wage on October 18th, 2007 at 5:13 pm said:

• It’s really hard to save anything when you earn minimum wage and have student loan debt. Less spending money in Europe? Surely you jest.

BawldGuy on October 18th, 2007 at 8:39 pm said:

• MW – I was referring to those who have been fortunate enough to have been able to have the investment capital to create a better than average retirement.

The Odysseus Medal competition — Voting for the People’s Choice Award is open | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments on October 22nd, 2007 at 9:03 am said:

• [...] Here is this week’s short-list of Odysseus Medal nominees: Dan Green — Housing starts, Why The Terrible Housing Starts Number Could Be A Signal Of The Housing Market’s RecoveryKris Berg — Paper trained, Paper TrainedBrian Brady — Blog compliance, Disingenuous Diatribe: Compliance is Crap-It’s About the CashMorgan Brown — FHA secure, Qualifying for FHASecure and Refinancing in a Changed Mortgage WorldJeff Brown — Hyperlocal blogging, House Agents — Wanna Start the New Year Kickin’ Ass? Here’s HowKris Berg — Face time, Face Time or Facebook?Jim Cronin — Blogging for buyers, Looking For Ready To Act Buyers? Blog These Proven To Succeed Real Estate TopicsDan Melson — Going vertical, Economics of Home Ownership in High Density AreasJeff Brown — Social Security, First Baby Boomer Applies For Social Security — Let The Games BeginMorgan Brown — Wholesaling DOA?, Dead Man Walking – Wholesale Lending is Marching Towards ExtinctionBenn Rosales — Despised Realtor, Realtor most despised – an open letterJim Duncan — Wharton calumnies, Whither false blame? [...]

BloodhoundBlog.com | What If The Real Estate INDUSTRY Didn’t Control The Real Estate Market? | National real estate marketing and technology blog | Realtors and real estate, mortgage and investment news on June 11th, 2009 at 12:16 am said:

• [...] were in the middle of a long-term market paradigm where demand was greater than supply.  Remember, that chunk of people just turned 65 so they’re pretty much out of the market.  That paradigm is shifting- ask Gary [...]

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