In these tumultuous times, I have been trying to put more in savings. I have a small income, and it's mostly Social Security, so this has always been a challenge, but now I feel I have to do more. Frankly, I'm terrified of this abominable administration. My son is a government worker. He is not safe. I depend on Social Security, so I am not safe either. Don't try to tell me Trump says it won't be touched. He is the biggest liar and most depraved man I ever seen in public office (and I have lived for 75 years!) I don't believe him. Musk is even worse.
So I am challenging myself, as the end of the month looms, to spend nothing till the first of March. My supplies are dwindling. I have some chicken salad, half an apple, some uncooked pasta, one frozen chicken breast, most of a half-gallon of milk, 10 eggs, half a package of sliced cheese, half of a cake, a few nuts, and some frozen fajita filling and lasagna. As well as some frozen vegetables and fruits. I think this is enough to tide me over.
The catch is I have to pay my semi-annual property tax installment, as well as three utility bills, so it will hardly be no spending. I am simply focusing on what is avoidable. I hope to sweep more than $1000 into savings at the end of the month. I hope to do this often.
I didn't ask for this. I didn't vote for the man. But I think we all wlill suffer, except, of course, the uber-rich. However, Buffett is certainly not a fan! He has moved away from US stocks and into Japanese investments. We should listen.
February 23rd, 2025 at 05:02 pm 1740330129
February 23rd, 2025 at 09:03 pm 1740344615
February 23rd, 2025 at 11:05 pm 1740351904
As far as Social Security, another friend wrote to me with concerns about SS, so I am just copy-pasting from the email I sent to her yesterday. Hopefully it offers some reassurance on the SS front at least:
Social Security is funded by payroll taxes. As long as people are working, there will be payroll taxes going into the system to fund ongoing payments.
Funds go into "Trust Funds," one for OAS (Old Age Survivors) and the other for DI (Disability). Until 2010, these funds took more than they paid out, so that there has been a positive balance. Currently that overage is scheduled to be depleted in 2033 for OAS but should last until 2098 for DI.
Even if no action is taken by Congress, they would still be able to pay about 79% of scheduled benefits.
Many actions can be taken to enhance the solvency of the Trust Funds. (Remember, it's not SS that could go bankrupt, it's the Trust fund EXCESS that could be depleted.) These include
-Continuing to extend Full Retirement Age to age 70. This would probably start with a 2-month increment for those born in 1961 (because the age has already been increased for those born between 1955 and 1960 inclusive). Rs tend to favor this.
-Increase the Social Security wage base--the amount of wage you pay your SS tax on. For Social Security, this year's wage cap is $176,100. If you earn more than this, you only pay 6.2% on that amount or a maximum of $10,918.20 in a year. No matter how much you earn!! [For Medicare, on the other hand, you pay this tax on every dollar of compensation income, plus a .9% Medicare Surtax for wages over $200k single, $250k MFJ.] Dems favor this solution.
-You can also change various calculations--the form of CPI that is used or the "bend points" in the AIME (Average Indexed Monthly Earnings) that is used to calculate your benefit.
-You could slightly increase the payroll tax, say from 6.2% to 6.5% of earnings.
-You could eliminate provisions that allow certain people (e.g. hedge fund managers) to count compensation income as long-term capital gains (this is the "carried interest" provision you may hear about in the news).
So, many things they could do to fix SS, but there is no political will to do what would be regarded as a tax increase. At some point between now and 2033, they'll probably do SOMETHING to stave off a benefit cut, but what is unknown.
87% of the population supports the Social Security program and more than 50% of people, even Republicans even support extending/increasing Social Security. (The latter result varies by survey and question framing.) You want to see violence in the streets? Cut Social Security benefits--especially for people who are already eligible to claim. I really don't think they'd dare do it outright. (But extending the retirement age and the wage cap are actually ways to cut the benefit, just less obviously).
I wouldn't worry about this and I wouldn't claim it early (not relevant in your case) because of the hysteria in the news.
I'm not saying that there isn't reason to worry--there are certainly lots of reasons to worry in the current political climate, but I'd be more worried about national security risks and risks to our health with all the cuts that are being made haphazardly than I would be about your SS.
February 24th, 2025 at 01:39 am 1740361171
February 24th, 2025 at 01:40 am 1740361249
While we can't know his reasons for sure, there are a couple possibilities:
- simple profit taking. Apple, VOO and other stocks are incredibly high right now and he is reaping some profits, with the idea that he will get back in when the stocks come down. This is the most likely scenario.
- upcoming recession concerns. Could Buffet be hoarding cash to play it safe during an uncertain economic climate? It's possible, but Buffet has been quoted in the past as being someone who does not believe you can "time the market".
"Let me be clear on one point: I can't predict the short-term movements of the stock market. I haven't the faintest idea as to whether stocks will be higher or lower a month or a year from now." - Warren Buffet, New York Times 2008
- possible exit strategy? Buffet is now 90 years old, and has famously announced that his fortune will be put in a trust when he dies that is to be used for philanthropic purposes. With his advanced age, it is possible that he is moving his assets to cash to facilitate this transition.
sources:
https://www.fool.com/investing/2025/02/21/why-did-warren-buf...
https://www.inc.com/marcel-schwantes/warren-buffett-has-alre...
February 24th, 2025 at 02:27 pm 1740407231
I actually find it encouraging to see people on message boards that have never included much politics speaking up and pushing back.
I don’t think those of us receiving Social Security will lose our payments.
Service will decrease.
Cost of living adjustments might end, and with inflation, that will be hurtful.
Younger people will see phase out of benefits.
I also think we will see Medicare start to cover less and less - like ending coverage for telehealth and increasing drug costs.
You are smart to beef up your cash as you can, but really those who,live frugally will suffer the most because we already do the things other people need to learn to survive.
Anyway, thanks for sharing.
February 24th, 2025 at 07:56 pm 1740426985
As for politics, I make it to crystal clear to anyone willing to know that I am against Trump and anyone like him. However, my reasons are varied and so lengthy, I am trying not my best not to end up ranting on what is essentially a financial site here.
That said, many of Trump's decisions IS going to affect us all financially somehow. Because of that, I also believe that some cross-over into politics is inevitable, and it's only a matter of time I will probably blog about it myself.
I guess that's just my long round-about sort of way to say that I share the same sentiment as you, and as you have already pointed out from the very beginning, if someone doesn't like to read about it, don't read it!
February 24th, 2025 at 08:54 pm 1740430477
February 24th, 2025 at 10:18 pm 1740435517
February 25th, 2025 at 12:33 am 1740443614
People I don't get how they literally voted for a crazy person. Sometimes I think he just says whatever is in his head.
February 26th, 2025 at 12:17 am 1740529033