# Financial Independence or Dependence?



## KittyCat (Dec 1, 2010)

How can a person be financially independent when he retires if a substantial portion of his income is social security? Social security was originally envisioned as one source of funds among three to finance retirement. Like a three legged stool they are investments/savings, pension and social security. Prepared Society thinkers are to look ahead and plan accordingly. Yet how can you claim independence of government, limited or otherwise, if you are financially dependent on social security? I am not assuming the end of the world. I am not assuming a barter economy of nickels or gold or other precious metals. Rather, what are you doing now to lessen your dependence on social security? I am talking about long term steady cash flow.


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## goshengirl (Dec 18, 2010)

DH and I have no expectation that SS will be around when we retire. We've paid into it for 30 years, but no matter, it's in the control of government, and therefore something we've NEVER banked on. SS has nothing to do with our retirement plans.


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## The_Blob (Dec 24, 2008)

I plan on having lots of children and grandchildren to be a burden on! :2thumb:

seriously tho, people survived before SS (and Big Bruddah Goobermint) and they'll survive after



goshengirl said:


> DH and I have no expectation that SS will be around when we retire. We've paid into it for 30 years, but no matter, it's in the control of government, and therefore something we've NEVER banked on. SS has nothing to do with our retirement plans.


there are limited SS opt out options, become a Christian Scientist (or get ordained by the ULC  )... I'm pretty sure you cannot recoup your 'losses' tho 

http://www.irs.gov/pub/irs-pdf/f4361.pdf


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## goshengirl (Dec 18, 2010)

The_Blob said:


> I'm pretty sure you cannot recoup your 'losses' tho  http://www.irs.gov/pub/irs-pdf/f4361.pdf


Yeah, we just consider it the cost of living in a 'free' nation. 

(Don't get me started.) :gaah:


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## BillS (May 30, 2011)

Social security is going bankrupt. All the reasons for it have been well documented. The government spends the money as soon as it comes in. There will come a time when the checks stop or payments out are limited to payments in. Myself, I expect to work for as long as I'm physically able to do so.


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## KittyCat (Dec 1, 2010)

goshengirl said:


> DH and I have no expectation that SS will be around when we retire. We've paid into it for 30 years, but no matter, it's in the control of government, and therefore something we've NEVER banked on. SS has nothing to do with our retirement plans.


There has been and still remains a grave concern amongst those ready to retire that it will not be there, or if so, only for a very brief time Most Americans retire broke. If social security is not an option, something has to fill the gap. What do you think should and what is its source? Support from children and grandchildren is very commendable and traditional in some cultures. However, since the sixties American families have purposely become smaller to increase their financial per capita. Now many of these same families are having their adult children and grandchildren move back into their home due to financial circumstances.


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## VUnder (Sep 1, 2011)

Finacially independent means that your income exceeds your out go each month. Prepare to provide necessary goods and or services in a new economy. I am sure that if you are seasoned enough to draw SS, then you are a wealth of knowledge. That will be valuable and you can invest in having a good environment to do that. In the future, wealth may be having a dry, warm place to live and plenty to eat and drink. I have some ideas and am willing to discuss.


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## Clarice (Aug 19, 2010)

Right now DH and I are working full time and drawing our full SS. We are saving the SS as we have other income for the moment. We both work for the county and with all the government cut backs, can't be sure how long that will last. We have both paid into the system for over 50 years and do not expect to receive all we have paid in. But at least we will have something.


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## Wallrat (Oct 28, 2011)

I'll retire with maybe a little SS, the income from a small trailer park, and savings, plus what gold I've set aside. Maybe inherit a bit too. Not much, but I shouldn't have to steal the kibbles from Doc and Annie. I also buy whatever I find along the way that should hold its value better than cash: precious stones, guns, coins, etc.


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## Jimmy24 (Apr 20, 2011)

Being retired, I can speak to some of these issues. 

As I see it, in the conditions we have financially in this country right now, puts a person in a catch 22. If you try to build a 401k, if you have access to one, your at the mercy of the market. Savings of any kind in banks I consider risky at this point. 

I rolled my 401 into an annuity and along with my pension, things would be great. And it was, until I went in to talk to my agent about the safety of that money in regards to a severe market/money/government crash. He replied I’d be in the same boat as anyone. It’s insured, by the government….So luckily I was in 1 year lock. I paid a severe penalty, but now at least for the moment, it’s in a CU acct just pretty much sitting there. Now it’s not much safer, but a tad more liquid. 

I changed my lifestyle years ago and made it a bunch simpler. Been out of debt for nearly 12 years. Monthly living expenses are it. I still have SS coming if it’s there in a few more years. But if it’s not there I’m ready.

Preparing for retirement is not something to wait to study till your in your late 40s or later. You better have a plan and working on it in your early 30s if you expect to have a decent retirement.

Jimmy


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## The_Blob (Dec 24, 2008)

Jimmy24 said:


> Being retired, I can speak to some of these issues.
> 
> As I see it, in the conditions we have financially in this country right now, puts a person in a catch 22. If you try to build a 401k, if you have access to one, your at the mercy of the market. Savings of any kind in banks I consider risky at this point.
> 
> ...


You can take a 0% 'loan' out on your money in a C.U. and pay it little by little, so that way you have a large amount of 'liquid cash' on hand, you're used to living on what you make minus the 'loan' payment, you improve your credit rating (if you care, I personally don't), and at the end you have your initial pile of money... how C.U.s manage to stay in business with this model I don't know :scratch but I like it and will continue to do business with them as long as they operate this way.


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## TheAnt (Jun 7, 2011)

The_Blob said:


> I plan on having lots of children and grandchildren to be a burden on! :2thumb:
> 
> seriously tho, people survived before SS (and Big Bruddah Goobermint) and they'll survive after


Looks like you and me are on the same retirement plan!

I will work as long as I am able, all the while teaching my children to be responsible, they will take care of me and my wife if it comes to that. 'Course my only child is two right now so we are kinda on our own for now


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## The_Blob (Dec 24, 2008)

TheAnt said:


> Looks like you and me are on the same retirement plan!
> 
> I will work as long as I am able, all the while teaching my children to be responsible, they will take care of me and my wife if it comes to that. 'Course my only child is two right now so we are kinda on our own for now


hahahahahaha you're still 3 years ahead of me, I still haven't been able to find a gal who'll put up with my crap 

I hear *winning the lottery* makes one more attractive :hmmm:


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## TheAnt (Jun 7, 2011)

The_Blob said:


> hahahahahaha you're still 3 years ahead of me, I still haven't been able to find a gal who'll put up with my crap
> 
> I hear *winning the lottery* makes one more attractive :hmmm:


Haha! I love it!


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