Saving for Retirement 2 of 2

This is a follow up to some questions posted on "Social Security Again!"

There is no such thing as saving money for retirement. The younger generation produces the goods and services that the older generation is no longer healthy enough to keep producing. Then they give some money to the older generation either through Social Security or through private retirement plans so the retired generation can have the use of some of the goods and services.

Social Security has always paid for itself and has not contributed to any of the current government debt. There is no trust fund, all of the extra taxes collected by Clinton and all the money saved by Bush benefit reductions has been spent on other stuff. Pensions, whether public or private are no better. As soon as the state needs the money for something else or the corporation finds that pensions are getting in the way of profitability the pension is deminished or eliminated.

Private plans like 401(k)s and IRA have no money in them. The money given to them for investment is immediately spent. The managment firm takes its profits, then it pays out benefits, and all the rest of the money eventually becomes dividends for owners, interest for bond holders, and salaries and bonuses for the owners/senior managers. It is a Ponzi scheme that only works as long as people keep paying in and the economy keeps growing.

Saving money for retirement is an abstract concept that is not intuitive or compatible with other forms of savings such as setting aside fire wood and food to get through the winter. Historically, only the wealthy have ever lived long enough to enjoy something like retirement. The common people prepared for their senior years by paying off the farm and turning it over to their offspring. The aging generation then became the dependents of their children who were better able to provide because their parents had paid off the farm or family business and trained the youth to run it. This is the model for the past and for the future.

If we want to continue the social expirement in dignified, secure retirement we need to trust our government and our government needs to put the common people ahead of the wealthiest few percent. We must reform our monetary system. The debt-based money system can do nothing but fail. It was desinged to make a few people wealthy at the expense of all others. Private retirement plans are just schemes to seperate common people from money too.

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[a012345]

@tattooskin72 The only time I would consider putting my parents in a home is if they need around the clock care and I am unable to provide it.

[tattooskin72]

@a012345 I would say it's true that what you say is much more common in "Asian culture"... but it's the same way my family is. There is no way my grandparents would be put into some nursing home. My parents won't go into a nursing home either. as long as there are people in the family to take care of the needs of other family members it stays in the family.

[a012345]

Sometimes I really don't know how to respond to your videos as I agree with almost all your points. I grew up as an only child and being Asian, I already know that I am expected to take care of my parents out of tradition alone. In some regards, my parents already made some provisions to provide for themselves in retirement like paying off their own house and having some cash aside for me to take care of them.