Consumer group warns senior citizens of red flags when planning for retirement

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  • DN Subscriber 2 SLC, UT
    April 21, 2013 5:32 p.m.

    Are they warning about Ponzi schemes were early "investors" pay in a little bit of money and then are paid off huge sums, to entice others to "invest" in hopes of getting similar great returns?

    That is a very real scam. However, in this case, the later "investors" who will end up getting little or nothing back for what they paid are in fact the children and grandchildren of the current elder population.

    You see, the very premise is unsustainable, and those who were supposed to be "guarding" the money, allegedly in a "lock box" took it all and spent it on other stuff. There is not enough money, and the IOUs left for it are nearly worthless. And, if it is to be repaid at all, the younger folks will have to pay up again via other taxes to postpone collapse of the Ponzi scheme.

    Yes, that is the reality of "Social Security" today.

    Advice to younger people:
    (a) Don't expect to receive a dime from SS.
    (b) Plan on being taxed heavily to pay for many years to come as SS is phased out except for those already one it.
    (c) Save for your own retirement.