Job Discussion Forums

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

MM... let's go into this one by email...

VS

ShaikhRattleandRoll · Joined: 15 Feb 2007 Posts: 15

Sorry to be unclear - I was referring to paying social security. That is a federal tax. [/quote]

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

Not really... when I look at my Federal taxes, it is money that is gone and I will never see any benefit from it... it is scooped up and spent on the government's priorities which are usually not mine.

On the hand, Social Security is a tax which is paid out to retirees, and the majority of us who live long enough will eventually get back much more than we paid in personally. I don't mind paying money that allows older Americans to be able to pay their bills and eat... even though some do abuse the program.

But... we meander off topic... again...

VS

misteradventure · Joined: 18 Aug 2003 Posts: 246

okay folks, I've read too much about this:

Social Security is a 'benefit program'. If you want retirement, make your own. It will probably pay better than SS anyhow.

FICA is a US payroll tax (which is used to determine Social security 'entitlements' or 'benefits'). As a US-licensed school, I believe they have the option of recording you on their US staff and paying the tax. If you insist on paying a tax not levied upon you, you could incorporate, churn the till a little and generate tax receipts, which would require you to pay both income and FICA taxes.

up to you, really.

I'd like to know how is life for single males. Is it really only good pay and bathtub gin?

johnslat · Posted: Thu Jan 31, 2008 1:01 am Post subject:

Dear misteradventure,

"If you want retirement, make your own."

Heck, why not do both - I did. I worked abroad for 23 years (19 in Saudi Arabia, 2 in Indonesia, (almost) 1 in Iran - the revolution interrupted my stay there) and managed to save a tidy sum (especially from the job in Saudi Arabia), and I just received my first Social Security check this month (yes, I am a geezer.) OK, it's not a fortune (the SS check) but it's enough to pay for all the food and utility bills every month - with some left over.

Regards,
John

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

773 · Joined: 29 May 2005 Posts: 213

VS, did you manage to pay into social security while overseas? It has been my understanding that I could do this from only a few countries (Korea being one of them) but not from most places. I am 34 now and have been overseas since I finished my Bachelors in 1995 and am starting to panic a little now since I have barely put anything into SS and would like to start doing so. Did you do this, or did you wait until you returned to the States?

Sorry to go off topic a bit there.... Embarassed

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

I only paid into the system when I was at AUC in Egypt. You can not choose to pay into the system voluntarily. Only if your overseas employer has the capability (or more likely obligation) can you have it deducted overseas.

I was vested before I went overseas as EFL was my second career (you need to have paid in for 40 quarters to be vested). It is a bit complicated to go into here, but something that everyone should check into as related to their own country's systems.

What most people do is suddenly remember in their mid-30's that one day they will want or need to retire. At this point, you will never be able to pay in enough to SS to support yourself - as even at the top of the scale, the payout is small... thus it is time to start saving and investing.

VS

773 · Joined: 29 May 2005 Posts: 213

Thanks, VS. Actually I never plan on returning to live in the US, so had planned on living off of savings and investments, but wondered what my options were with social security. I had checked into it before and I don't have enough paid into it to get anything when I retire. It's a bit intimidating to think about, actually! But I'll have to save and invest enough to manage I guess... Very Happy

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

Good Luck!! It can be done if you invest wisely and carefully (and are lucky). I was able to retire at 52. Laughing

VS

773 · Joined: 29 May 2005 Posts: 213

52!!! Very nice. I am going to make an appointment to talk to a financial advisor this summer when I am home to decide on the best course of action in the coming years. I am hoping to retire by 65...but 52!!!! You are one of the very lucky ones. Cool

Good on ya!!!!! Very Happy