Pay me now or pay me later.

[George K]

@Jolly said in Pay me now or pay me later.:

@George-K said in Pay me now or pay me later.:

@jon-nyc said in Pay me now or pay me later.:

I think most people would take that. 3 months delay in your 60s sounds trivial to your average 20-50 year old.

Good point. A dollar now is probably worth a lot more than a dollar 30 years hence.

Social Security is adjusted for inflation.

Supposedly.

I realize that, of course. The point Jon was making, I believe, is that $5000 is much more valuable to a 35 year old today than the equivalent inflation-adjusted amount 30 years later.

[mark]

I'm 58 (really? when the fuck...?) and it's worth more to me now, than at 65.

[Copper]

3 months of my SS is a lot more than $5K, my wife too.

[LuFins Dad]

Personally, I like the idea so long as it doesn’t open Pandora’s Box and become something that happens for every perceived emergency.

It’s better than the fed printing money and devaluing your retirement savings through inflation.

[Jolly]

@George-K said in Pay me now or pay me later.:

@Jolly said in Pay me now or pay me later.:

@George-K said in Pay me now or pay me later.:

@jon-nyc said in Pay me now or pay me later.:

I think most people would take that. 3 months delay in your 60s sounds trivial to your average 20-50 year old.

Good point. A dollar now is probably worth a lot more than a dollar 30 years hence.

Social Security is adjusted for inflation.

Supposedly.

I realize that, of course. The point Jon was making, I believe, is that $5000 is much more valuable to a 35 year old today than the equivalent inflation-adjusted amount 30 years later.

Depends on the H&B (Hookers & Blow) Index.

[mark]

@Copper said in Pay me now or pay me later.:

3 months of my SS is a lot more than $5K, my wife too.

It's a not a guaranteed full 3 months that is the max it would take to repay. If you make more than that, it will get paid back faster than 3 months.

[Mik]

If one already makes more than that why take the loan?

[jon-nyc]

If you have high time preference or a low life expectancy it makes sense.

Or if you think it’ll be worth more invested in something

[Jolly]

@jon-nyc said in Pay me now or pay me later.:

If you have high time preference or a low life expectancy it makes sense.

Or if you think it’ll be worth more invested in something

Free money to take a flyer on high risk stuff?

[Improviso]

Well... considering we've only got 12 years left before the world ends, take the money and run.

[Axtremus]

Similar proposal reviewed but rejected by the White House:
https://www.washingtonpost.com/business/2020/05/10/top-white-house-advisers-unlike-their-boss-increasingly-worry-stimulus-spending-is-costing-too-much/

"...
Senior administration officials have discussed the “Eagle Plan,” a 29-page memo that called for an overhaul of federal retirement programs in exchange for upfront payments to some workers, but the White House has already rejected it, according to three administration officials. ...

The proposal calls for giving Americans $10,000 upfront in exchange for curbing their federal retirement benefits, such as Social Security, the report says. ...

The plan’s first page says it was written by Paul Touw, chief strategy officer to U.S. State Department undersecretary Keith Krach, whose responsibilities do not include creating domestic policy. ..."

Why the State Department proposed a plan that deals with Social Security?
That is a mystery.

[LuFins Dad]

5K vs 10K and the verbiage "curbing Social Security"? Yeah, that's a non-starter.

[jon-nyc]

In recent years there have been right-of-center proposals for doing similar things to provide parental leave and care leave. Draw for a few months when you need it, start SS a bit later. Somewhat analogous to borrowing against your 401k.

[Copper]

@jon-nyc said in Pay me now or pay me later.:

Somewhat analogous to borrowing against your 401k.

In the old days the mob and the union used to do that.

It didn't work very well.