Non PARF, but "O" cut your SS payments for 2 years by 2%-What to do?

[Hugh R]

Without getting political or debating the merits of the bill. The O-Man cut your employee SS contributions from 6.2% to 4.2%; for two years. I decided to up my 401K contribution by that exact same amount. The money was leaving your wallet anyway, you might as well put it into the 401K, 403b or IRA and actually get a real ROI on it. I've put close to the max in the last few years, but now I'm at the max, plus the $5,000 catchup for those over 50 years old.

I posted it here, because I really didn't want to get into the politics of whether it was right or wrong. In this RARE case, I think this was a good idea to help stimulate the economy, compared to the unemployment benefit extensions. I suspect most people will spend it not put it away for their retirement.

[dan88911]

Smart move on your part. And anyone who is able to do so.
However,as far as the economy the biggest tax break should go to those with the greatest propensity to spend it.

[JR Indy]

I'm max on my 401(k) as well, so I'm considering putting it in my HSA, which is another pre-tax way to save. I'm thinking of using it for LASIK this year, if not at least it is earning some return.

[Heel n Toe]

Everyone should put some of it into an account for "the supposedly soon to happen radical rise in gasoline prices" that a lot of industry analysts are forecasting.

[RWebb]

definitely take advantage of the Republicans cutting your employee SS contributions from 6.2% to 4.2% for two years & put it in a tax-advantaged account.

[wdfifteen]

Ha. I just reorganized my compensation to minimize my earned income, so the cut is only going to be worth half of what it would have been last year. Paltry as it is, I'll no doubt spend it. I'm not going to live forever.

[David]

My 401K is maxed out and I can't put money in an IRA, so I guess I'll just spend it

That's what they want me to do right?

[sammyg2]

Originally Posted by Heel n Toe

Everyone should put some of it into an account for "the supposedly soon to happen radical rise in gasoline prices" that a lot of industry analysts are forecasting.

It's already happening, expect $4.50 by summer in kalifornia at least.

Demand is resuming overseas for finished prodicts. For a while they could import ther stuff cehaper than we could make it so that kept the prices really low, below break-even in most cases. Now that demand is up over there, the prices here are stabilizing (going back up).
Except for the fact that every time washington spends money we don't have it lowers the value of that money, which drives up the cost of crude oil which indirectly raises the cost of finished products.

At $90 per bbl crude, gasoline should realistically be at $3.50.
if crude his $110 which is very easily could, gas would have to go up to $4 to provide a sustainable ROI.
Oil refineries cannot lose money on every gallon forever. Eventually they have to cut production or shut down completely.

Ponder this:
at today's prices, crude oil costs $2.10 a gallon.
It costs about 20 cents to process that gallon into finished products.
The wholesale price for those products in southern Califorinia as of the end of business yersterday was 7 1/2 cents over the cost to purchase the oil based on a 3-2-1- crack spread. That means a typical refinery in So cal is losing money on every gallon it is making which surprisingly to most, is not unusual in the winter.

The wholeseale price has not significantly moved over the past month or two but the retail price has climbed about 25 cents.
In other words:
THE RETAIL GAS STATION OWNERS ARE MAKING A KILLING RIGHT NOW WHILE THE REFINERS ARE TAKING IT IN THE SHORTS!

Assuming the market stabilizes, gas should shoot up even more by early spring.

[sammyg2]

I'm going to take that extra money from SS and use it offset a small part of my large health insurance premium increase that becomes effective January 1st!

[sammyg2]

Originally Posted by RWebb

definitely take advantage of the Republicans cutting your employee SS contributions from 6.2% to 4.2% for two years & put it in a tax-advantaged account.

Wow. Obama is a republican? Go figure.

Maybe it was all Bush's fault after all ROFLMAO.

[Joeaksa]

Originally Posted by sammyg2

Wow. Obama is a republican? Go figure.

Maybe it was all Bush's fault after all ROFLMAO.

It does not matter how many times you say Obama, RWeb sees Geo W. Bush in his headlights and says its a conservative plot. Sad to see such a waste of a persons mind...

Am putting an extra 4% in my 401k to make up for Obama's move here. The boss matches it up to 10% so might as well.

[peppy]

removed comment...would have helped it to parf.


I hope to save it but it will probably get sucked into the monthly budget.

[ronster]

"Without getting political or debating the merits of the bill"

Probably one of the most ridiculous statements I've read on this site so far. A troll is a troll is a troll.

[patssle]

When does the cut go into effect? Jan 1st?

[Hugh R]

Originally Posted by ronster

"Without getting political or debating the merits of the bill"

Probably one of the most ridiculous statements I've read on this site so far. A troll is a troll is a troll.

You are so full of it. I put this out solely as a forum to discuss what to do with the money. If I wanted to do otherwise, I'd have stuck it in PARF. You sir are the troll.

[red-beard]

Originally Posted by ronster

"Without getting political or debating the merits of the bill"

Probably one of the most ridiculous statements I've read on this site so far. A troll is a troll is a troll.

I don't care who you are, that's funny right there!!!

[flatbutt]

that money is going straight to my mortgage

[red-beard]

Originally Posted by wdfifteen

Ha. I just reorganized my compensation to minimize my earned income, so the cut is only going to be worth half of what it would have been last year. Paltry as it is, I'll no doubt spend it. I'm not going to live forever.

Well, we're in the same boat. My employees will be getting a 2% "raise" though.

[red-beard]

Originally Posted by patssle

When does the cut go into effect? Jan 1st?

Yes, January 1st, 2011. Which means the payroll calculating programs will all have to be adjusted between now and the 1st week of the year.

[RWebb]

Originally Posted by sammyg2

Wow. Obama is a republican? Go figure.

.

President Obama would never have done this if not for pressure from the Republicans.

I guess Hugh is trying to sneak his political post into OT, but he betrayed himself 2x - once by confusing the real impetus for the action, the Republican victory and then negotiation with Obama.