Someone explain this aspect of social security to me, %returns??????
 

Ok, I never claimed to be a financial genius, but here we go.

I have been listening to the left media (AAR) and the talking heads from the left on TV claim that SS does indeed get a decent return, like 3-4% or something. That the money is actually invested in government T-bills(maybe something a little diff, can't remember).

This is where you lose me. How is that a return on the investment? I mean the entity holding the funds is PAYING out this %, not receiving it! Our government isn't investing the money to build the account, rather it's spending the money and paying interest for the privilege. Do you get what I'm saying?

Example:

You are a member of a Union and they manage you retirement account. They tell you that you can expect 3% return, OK cool you think. You figure they are investing conservatively and that these lowish returns are simply a reflection of that safety factor.

But wait! You find out that the Union has been buying cars/vacations/homes/etc... for the union brass with all your money rather than investing it! "But wait" they say, "we'll still give you 3% return, we promise."

"how so" you ask, "you're just spending my money on crap, not investments. Where will the money to pay me come from?"

"Oh, we'll just demand more from the younger union members to pay the returns we promised you".

"Ok" you reply, "but wouldn't it have been easier to actually invest my money in the first place instead of spending it?"

DOES THIS SOUND LIKE A SOUND PLAN TO YOU? Good grief! Do you expect it to continue to work forever? Am I the only one that sees this? Why is this not brought up?

THE MONEY IS NOT EARNING A RETURN, THEY ARE BORROWING FROM THEMSELVES! Get these idiots away from my money!

Yes, we've been calling it a Ponzi scheme all along. Glad we could finally convince you Conservatives of the scam :)

If I were to go out and set up a scheme like this, I'l land in jail. If was a better criminal (like maybe I'd grown up in a Conservative household :p ) then I'd be really rich doing something like this.

Unless sarcasm is lost on me, we agree. So why do you guys on the left want to keep these morons in control of your money?

I'm not sure it's a left/right thing. I would be much happier putting my 15% of 90k into an IRA or 401[a-z] - hell, putting it under my mattress would be better than what's being done with it now!