Detroit files for bankruptcy

[OnMyWayID 1,489]

Hmm.. I understand at some point pensions may go away but why would investors get *anything* back if that were the case? You knowingly take a risk when you invest, you should be the first to wave goodbye to your money when things go south. They should not be at the same priority as city obligations.

[Karee 4,191]

Hmm.. I understand at some point pensions may go away but why would investors get *anything* back if that were the case? You knowingly take a risk when you invest, you should be the first to wave goodbye to your money when things go south. They should not be at the same priority as city obligations.

I believe there's a pecking order in bankruptcies. Shareholders and employees get screwed first, bondholders next. Since Detroit isn't a public company, there are no shareholders. However, there are alot of people and funds etc. that hold Detroit municipal bonds. They're not really investors in the sense that they expect the city to turn a profit. They are more like lenders that loan the city money with the promise that the city pays it back with with interest. I believe it's still considered unsecured debt, but I'm not sure.

Edited July 18, 2013 by Karee

[Ban Hammer 13,584]

just saw this one on fb

[Bugs 455]

I heard the report on NPR radio, earlier today.

I'm excited, really !

That's a great question.

I actually wasn't asking rhetorically either. I genuinely want to know. How does one survive if their pension goes under and they weren't paying into social security?

[GandD 5,966]

I actually wasn't asking rhetorically either. I genuinely want to know. How does one survive if their pension goes under and they weren't paying into social security?

A lot of people keep working.

[Bugs 455]

A lot of people keep working.

What if they are 80 or 90?

[Karee 4,191]

I actually wasn't asking rhetorically either. I genuinely want to know. How does one survive if their pension goes under and they weren't paying into social security?

How can you have a pension and not be paying into social security? I didn't think it was possible to work and not pay into social security. Maybe there's a way?

[Bugs 455]

How can you have a pension and not be paying into social security? I didn't think it was possible to work and not pay into social security. Maybe there's a way?

Yes, it is possible. Many employers replace social security with their own pension plan for employees. I know this because mine has. And not only that, it is mandatory - I don't have an option.

[GandD 5,966]

What if they are 80 or 90?

Realistically, a lot of people sell their home (which most own at that point)/scale down, children help out. Stuff like that. There are government programs of course for the very poor.

[X Factor 1,112]

This bankruptcy will be a pattern that other struggling cities may copy. What a disaster

[Karee 4,191]

Yes, it is possible. Many employers replace social security with their own pension plan for employees. I know this because mine has. And not only that, it is mandatory - I don't have an option.

So there's no FICA taken out of your check? I've never heard of that before. I know they talked about it years ago, but I didn't think it went anywhere.

[Bugs 455]

So there's no FICA taken out of your check? I've never heard of that before. I know they talked about it years ago, but I didn't think it went anywhere.

Nope. 8% is instead taken out for CalSTRS. We do have money taken out for medicare though. Edited July 19, 2013 by Leon & Mylen

[Bugs 455]

Interestingly enough, we also didn't have the 2% stimulus that you all got either. But of course it wasn't raised back 2% either, the hit you all took this year.

Edited July 19, 2013 by Leon & Mylen

[Karee 4,191]

Nope. 8% is instead taken out for CalSTRS. We do have money taken out for medicare though.

CalSTRS. I googled it. That is a trip. I've never heard of that. It returned 13.8% in the last fiscal year and 7.5% annually over 20 years. Pretty awesome. I would never guess a state like California would do something like that. I wonder how they got the feds to go along with not withholding social security?

[GandD 5,966]

Nope. 8% is instead taken out for CalSTRS. We do have money taken out for medicare though.

Wait a minute. There's no way this is right. I pay into my pension (optional percentage) and insurance. I don't think people can opt out paying into socials security

Question, did your taxes "go up" this past January when the bush tax cuts went away?