From Birch Gold Group
When it comes to Social Security, taxes, and especially 401(k) plans in general, it goes without saying that Joe Biden has very different plans than President Trump.
And if Trump’s attorneys are not successful with their legal challenges regarding the election, the outlook for retirement savers for the next four years hinges on these plans.
Let’s start by examining Biden’s plan to expand Social Security benefits. According to one Forbes piece:
The Biden plan, as evaluated by the Urban Institute, does not meaningfully increase the system’s insolvency, which… signaled an intention simply to absorb deficits into general tax revenues.
“Absorbing” Social Security’s shortfalls into tax revenues means increasing taxes, plain and simple. Granted, Biden plans to raise taxes mainly on people who make $400,000 a year or more. But that plan does not account for inflation, which means more and more people will eventually foot the bill.
Furthermore, increasing taxes on wealthier Americans might not gain much traction on Social Security’s budget shortfall, according to the Urban Institute:
The additional Social Security payroll tax on earnings above $400,000 accounts for only a small portion of the nation’s total federal and state income and payroll tax collections, Biden’s plan would increase total taxes paid only 1.1 percent.
Under Biden’s plan, in order to account for inflation and the revenue needed by Social Security, there would have to be substantial growth in wages over time.
The problem is, there isn’t much time left before 2034, when the Board of Trustees reported that serious budgetary shortfalls and reduction in benefits would start to occur.
Of course we’ll have to wait to see how this all plays out. But, the picture that is starting to form seems a lot like “more of the same” solutions offered by politicians to an increasingly dire problem.
And that’s just Social Security.
SECURE Act “Redux”: Would Biden Get Behind It?
We’ve looked into Biden’s potential proposals for 401(k) plans already, and we’ve also examined the SECURE Act that passed on May 23 of last year.
Now, SECURE Act 2 has been introduced in the House. According to another article at Forbes, this “redux” would make the following changes to your retirement savings:
- Expand automatic enrollment in workplace retirement accounts
- Increase the Saver’s Credit
- Increase catch-up contributions
- Allow employers to “match” student loan payments with contributions to the employee’s retirement account
It remains to be seen if Biden would get behind these measures or not, although they do line up with his politics.
That said, when you take the potential for future gridlock into account, that might not matter, because even a bipartisan bill like SECURE Act 2 could wind up in the trash.
Don’t Let Your Retirement Depend on “More of the Same”
Starting next year, the House and the Senate are going to be even tighter than the past four years. That fact sure seems to lend credibility to the idea there will be more gridlock in Washington, at least for the next couple of years.
More gridlock could mean that the next four years could be “more of the same” for retirement savers, as politicians bicker back and forth with no meaningful changes being made.
So there may come a time in the very near future when you’ll be relieved that you hold physical assets such as gold and silver.
With global tensions spiking, thousands of Americans are moving their IRA or 401(k) into an IRA backed by physical gold. Now, thanks to a little-known IRS Tax Law, you can too. Learn how with a free info kit on gold from Birch Gold Group. It reveals how physical precious metals can protect your savings, and how to open a Gold IRA. Click here to get your free Info Kit on Gold.
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I have no doubt that the left plans to hand out a few more pennies per month to FICA recipients who
depend almost totally on it to live. I also have NO DOUBT he plans to tax the ever loving hell out of
those of us who have worked and saved for DECADES so we can retire comfortably and not have to live
hand to mouth with just a social insecurity check to pay the bills. The left wants ALL OF OUR MONEY
because they think THEY know how to spend it better than we do AND by STEALING all of our retirement
savings via various methods they make ALL retired people totally dependent on THEM….a more pliable
and dependable group of voters is hard to come by than someone who lives at the whim and wish of
those in power.
Each according to their ability each according to their need. This is a communist slogan. It means the more you produce the more will be taken from you and given to those according to their need.
With a Biden/Harris administration we are headed into communism. And many will embrace it until it is to late and we have to live through it 70 years just like the former Soviet Union.
Rob from the young to give to the old. Just more of the same from past generations.
Damn, guess your parents just stole the hell out of your money….poor baby.
Mygirl – You appear clueless as to how SS works. It is theft from the young. It is a Ponzi scheme, and it benefits those at the top of the pyramid- the old – until it collapses.
Retirement? “I don’t think that means what you think it means.”
I fully expect my generation (Gen-X) and those behind us will not “retire” at all. Retirement is a very new concept in the human existence, after the next financial purge it will no longer exist.
Just Sayin’
Exactly!! Ive been being told my whole life, mostly by peeople who are now retired and living on their “contributions” to the system, that there will not be any Soc.Sec. left for me despite my contributions. Oddly enough, those same people never saw (see) the porous ponzi pension they are leaving for their offspring. Gotta love them boomers.
My goal is to be a gig guy, part-time, by August 2022. We may get screwed out of retirement, but we don’t need to keep funding their bullshit at the same time.
This isn’t a left-right dialectic. It’s old vs. young and takers vs. makers. I’m personally quite tired of building systems to improve their way of life.
AOC someday you will get old. Should the young folk hate you for what the government did? You take, you took from your parents who spent to birth you and bring you into the world, they spend shit tons of money on your worthless whiney ass and this is how you repay their sacrifices for your ungrateful ass?
I have no problems taking care of my parents. It is you and yours I have a problem with. Get your own kids to take care of you. SS is a Ponzi Scheme. Quit lying about it and projecting your poor planning on me.
If you can’t figure out the difference between deciding to have children and providing for them on your own dime, versus welfare that you accept and spend, then I can’t help you.
Mygirl – what the fuck is your problem? A child does not take from their parents. That is too ignorant for words.
A grown adult has the responsibility to plan and save for their future. To expect that the young will do that for the is fucked up.
You need to stop taking those stupid pills. The effects are irreversible.
At the risk of posting the obvious, your comment is highly illogical. Read what you wrote, hopefully you can see the fail without my having to point it out. I’m sure you meant something else.
NoLonger – you are quite right. But any mention of that will bring the old folks out screeching “But I paid!”, along with thumbs down. Keep posting.
This could wind up with 401k’s getting nationalized to make up the SS shortfall. You might think this is one of the line in the sand moments (along w mandatory vaccination and gun confiscation). But alas, As Boomers die off (who are the only generation in human history to *truly* live a “retirement” lifestyle) and their hard earned money transfers to Millennials, who are socialist in nature and have no savings anyhow, will accept this. There would be a generational phase out (just like inherited IRA’s) and a lot of hullabaloo about “we owe it to ourselves”. And then our monetary lives will be completely controlled by our corporate-government overlords, with UBI and SS and FedCoin
Regardless of what they are saying, there will not be a dime
for old people. It (any $) will go to the
party. The communist party. Snitches get an extra loaf
of bread. East Germany. Ever read about it?
The Boomers and Silents have already *been* receiving SS. 1943-1961 and 1925-1942 according to Strauss and Howe.
Yeah, ALL that SS check money that still gets taxed, and was worked for and taken from paychecks by force. Instead of bitching about old people why don’t you shine that laser like focus on LBJ, Clinton, Pelosi and all the other politician that robbed the SS fund dry and filled it with IOUs?
How well you think you can live on $900 a month?
I don’t grasp your hatred of old people, but hey, have at it…
Here, here’s some old people images for you to focus your hate on…..
Yes, sad photos. What is the back story of people who got old with zero assets? Asking for an inquiring neighbor.
Pay her no mind. She wants me and you to take care of her parents because she couldn’t do it without SS. Just ask her.
Never mind. She’ll lie and tell you she earned her SS.
https://mises.org/library/social-security-most-successful-ponzi-scheme-history
Used to be Mygirl had quite a few good things to say. Now she is running around like a mad woman pissing. She has entirely lost the plot, and has turned into a bitter old harpy. She only posts to attack someone these days.
That was a long time ago, before she screeched about the Rona and how it was one of the Four Horsemen. She’s a terrified Old Maid so I do have a tiny bit of sympathy for her. She changed after that.
It is not my responsibility to take care of anyone else. To make someone responsible for someone else is to make them a slave. That it is now accepted as unassailable that society has an obligation to take care of old people is statement as to why the world is screwed. Personal and familial responsibility has given way to welfare state mentality, where the govt seizes from the productive and prudent to distribute to the parasites.
Those people are not my responsibility. I am responsible for me and my family. If I decide to be charitable, that is another matter. Seizing my assets to pay for another is immoral and unethical. But the sheep have been brainwashed into believing it is a societal responsibility. And we will pay and are paying the price for that degeneracy.
I am personally taxed 6.2% for SS and 1.45% for Medicare. Employers are also turned upside down and shaken for loose change. Granted, it cuts off for me at a certain ceiling (can’t remember exactly what it is, but there’s a ceiling). The amount I pay annually is the max and I’ll never see a dime of it.
Think about what each frugal employee could do with an additional 7.65% of income to save for their own parents, instead of paying for Mygirl’s.
And I’M the ungrateful one, according to her. LMFAO.
There’s a good chance that the Social Security tax ceiling (this year about $138,000) goes much higher under a Harris administration, and it may be done away with completely. The Medicare tax ceiling is already gone.
If I recall correctly, GW Bush was promoting those government-managed savings plans during his tenure. That went nowhere because the plan was a vehicle to push mountains of low yield Treasury debt off onto people who would’ve been better off owning a S&P Index Fund or simply buying gold.
I like the idea of taking my hard-earned paper scrip and converting it into an inflationary hedge the government has no means to account for or levy taxes on for the “common good”. As a matter of fact, a few years back I liquidated and converted a 401k and paid the tax to do so. It was a good move and that asset has continued to appreciate over time.
Makes no difference if yo own physical assets. Checka will come and trade you lead for your gold. Then they will sieze you other assets . We are approaching nut cutting time.
Odd, you are a fail on one statement.
The “Boomers” aren’t the first generation to live the retirement lifestyle, you need to read some recent history. The WWII generation (young adults who fought the war) were able to *truly* live a “retirement” lifestyle. The last of them are dying off now.
I remember quite well when the old folks attacked a sitting congressman on the streets for apparently attempting to stem the financial burden of medicare. Young at the time, I observed how well off they were, they were pissed off they might have to spend some of that money they had saved on co-pays. High interest rates made them rich, while those of my age were scraping by trying to pay that interest. This is not said with malice, only the reality of those times.
Social Security was supposed to fund someone who did not die yet became too old and worn out to work. The lifestyle of the time was to have enough to sick in a rocking chair on the next generations porch without being a financial burden. It turned into condos in FL or giant RVs cruising the interstates or grand adventure vacations.
The wealthy will mean, those with a job.
What a waste of time to read this. Instead lets discuss what wouldve been on dinner menu had the titanic not sunk.
I understand chicken cacciatore was on the menu.