Social Security update

My online students have a short paper for which they are to complete an online questionnaire to evaluate their investment risk level, and then examine various investment options, identify goals, and how they plan to allocate cash now for investing.  I posted the following this morning.
Social Security update
NOTE: Opinions expressed here are my own, and do not necessarily reflect the viewpoints of this organization or other faculty or staff.
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Page 392 of the textbook says that the Social Security trust fund will be depleted by 2044.
Last year the Social Security and Medicare Boards of Trustees projected that the theoretical combined OASDI trust funds will be depleted in 2033 (see table below).  OASI is Old Age and Survivors Insurance and DI is Social Security Disability Insurance.  Other components are Medicare Hospital Insurance (HI) and Supplementary Medical Insurance (SMI). [1]
According to the projection, even after depletion continuing tax income would be sufficient to pay 77 percent of scheduled benefits in 2033 and 72 percent in 2088.  Though I do not expect to ring in 2088 and may not even see 2033, some of you may see both!
The textbook further notes: “ . . . the government is somehow going to have to come up with the funds to make good on its pile of IOUs to the Social Security trust fund.”
Allen W. Smith, Ph.D. (Ball State and IU grad) stated that “The government has embezzled all surplus Social Security revenue, generated by the 1983 payroll tax hike, and spent the money on wars and other government programs. None of the money was saved or invested in anything.” [2].
At the end of calendar year 2014 our national debt was more than $18 trillion ($18,141,444,135,563) and has grown more than $10 billion by the end of March 2015.
Last fiscal year (October 2013 – September 2014) the interest expense aloneon our national debt was $430.8 billion ($430,812,121,372), enough to put $113.56 of food, every month, on the table in front of every man, woman, and child in America.
With $18 trillion in debt and no budget at all – let alone a balanced one – it is unrealistic to believe that our federal politicians will work hard to hold themselves to unsustainable promises made decades ago by their predecessors.  After all, to remain in office they’ve made too many of their own.
Rely on nothingfrom government.

[1] Source: Social Security and Medicare Boards of Trustees, Summary of The 2014 Social Security and Medicare  Annual Reports <http://www.ssa.gov/oact/trsum> accessed 12/09/2014
[2] Source: <http://www.fedsmith.com/2013/05/23/government-owes-2-7-trillion-to-social-security> accessed 12/10/2014

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