Who benefits from Social Security and how?

Who benefits from Social Security and how?

Introduction
With the increase in recent discussions regarding the depletion of Social Security funds, it is now more important than ever to learn about what Social Security is and who it benefits you. Social Security is a governmental program that provides financial aid to those who have little to no income. Not everyone is eligible for Social Security and many only receive it during their retirement years.

Recipients
A common misconception is that only retirees receive Social Security, but this is a false misconception. There are over 60 million people who benefit from the Social Security program in the United States. Beneficiaries include retired workers, the families of retired workers, the family of deceased workers, disabled workers, and the families of disabled workers.

Benefits
In 2016, more than $900 billion was dispersed to beneficiaries of the Social Security program. A large majority of the money was dispersed to retirees and their families, with the rest of the money paid to the family of deceased workers and disabled workers along with their families.

Among all the beneficiaries, both young widows and young widowers received the highest monthly income from Social Security. This group’s $9000+ monthly income is more than 6 times higher than the second highest paid beneficiaries of Social Security. This second highest group consist of retirees, who receive over $1350 in monthly income from the program. Though it may appear that both young widows and young widowers take up most of the Social Security fund, only around 130,00 people fit under this category. There are nearly 42 million retirees receiving Social Security, on the other hand.

Conclusion
Many people are unaware of the far reach of the Social Security program; only believing the program to benefit retirees. Upon closer examination, it is evident that the program serves many more people than just retirees. This is a little nerve-wracking, however, due to the slowly increasing number of beneficiaries and the slowly changing population.

 

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Is Social Security Running Out?

Is Social Security Running Out?

Introduction
Recently there has been a lot of talk about Social Security running out of money for people who would like to go into retirement. In fact, it has been said that the Social Security fund will be fully depleted by 2034. This has left many people, who are about to retire, worried that they may have to take up another job or continue working well past when they would like to. However, it is important to understand why people believe that Social Security will run out of money.

Life expectancy is on the rise, and more people are retiring while fewer people are working. This is an issue because Social Security comes from the taxes of those who work, meaning that more money will be coming out of the Social Security fund than going in. As you will learn in an economics class, it is never good to lose more money than you receive; you will end up in debt.

The Answer
Social Security will never fully run out of money. However, a decrease in the amount of money that the fund has will impact the retirees who receive Social Security monthly. If the fund diminishes, retirees will receive smaller checks in the mail, but these checks would not disappear completely.

The Reason
The Social Security fund cannot ever fully run out of money due to the taxes that the fund receives from citizens and recipients. There are a few solutions that can be taken if the fund does run out of money; give retirees less, or tax working-people more. Additionally, the full-retirement age can change to force people to work longer and retire later.

Conclusion
By 2034, many people are expecting the Social Security fund to run out. However, the results that people believe will happen are far less likely. The fund will not ever fully run out, and there are a few changes that can be made to assure that.

 

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4506-Transcripts.com Becomes Approved Vendor for Ellie Mae Encompass® Digital Mortgage Solution

4506-Transcripts.com Becomes Approved Vendor for Ellie Mae Encompass® Digital Mortgage Solution

4506-Transcripts.com is an IRS bulk approved vendor that provides tax transcript services to banks and mortgage companies throughout the US with a mission is to provide customers with fast turnaround times, sophisticated technology, and data security through their ISO 27001 certification.

4506-Transcripts.com announced the launch of their integrated partnership with Ellie Mae’s Encompass®. Encompass is an all-in-one mortgage management solution that offers a digital mortgage experience covering the entire loan lifecycle so lenders can originate more loans, lower origination costs, and reduce time to close.

“We are excited for the opportunity to create more long-lasting relationships via this new avenue,” says Sandra James, CEO of 4506-Transcripts.com. “This integration is a huge milestone for our company because it allows us to provide our quality service to a larger spectrum of clientele.”

With this integration, 4506-Transcripts.com makes it possible for lenders to use their favorite LOS platform accompanied with our outstanding customer service and unbeatable turnaround times.

About 4506-Transcripts.com
A technology and service leader in the tax verification field, 4506-Transcripts.com supports banks, mortgage bankers, and legal firms to process 4506-T forms from the Internal Revenue Service quickly.
Contact: sales@4506-Transcripts.com, 925-927-3333

© [2018] Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, DataTrac®, Ellie Mae Network™, Mavent®, Mortgage Returns®, Prospect Manager®, Total Quality Loan®, True CRM®, TQL® and the Ellie Mae logo are trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

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4506-Transcripts.com Becomes Fannie Mae Approved Vendor for Desktop Underwriter®(DU®) Validation Service

4506-Transcripts.com Becomes Fannie Mae Approved Vendor for Desktop Underwriter®(DU®) Validation Service

4506-Transcripts.com is an IRS bulk approved vendor that provides tax transcript services to banks and mortgage companies throughout the US with a mission is to provide customers with fast turnaround times, sophisticated technology, and data security through their ISO 27001 certification.

4506-Transcripts.com announced today that they are now an approved report supplier for the DU validation service. Fannie Mae’s Day 1 Certainty™ gives lenders freedom from representations and warranties plus greater speed and simplicity, and enables an improved borrower experience.

“We are excited for the opportunity to create more long-lasting relationships via this new avenue,” says Sandra James, CEO of 4506-Transcripts.com. “Day 1 Certainty is a huge milestone for our company because it allows us to provide our quality service to a larger spectrum of clientele.”

With this integration, 4506-Transcripts.com makes it possible for lenders to request tax transcripts and protects lenders from related buyback risk through Day 1 Certainty.

Black Knight, Inc. and Ventures+ are among the other integrations 4506-Transcripts.com has available with an upcoming integration with Ellie Mae®’s Encompass launching early February.

About 4506-Transcripts.com
A technology and service leader in the tax verification field, 4506-Transcripts.com supports banks, mortgage bankers, and legal firms to process 4506-T forms from the Internal Revenue Service quickly.

Contact: sales(at)4506-Transcripts(dot)com or call 925-927-3333.

© [2018] Ellie Mae, Inc. Ellie Mae®, Encompass®, AllRegs®, DataTrac®, Ellie Mae Network™, Mavent®, Mortgage Returns®, Prospect Manager®, Total Quality Loan®, True CRM®, TQL® and the Ellie Mae logo are trademarks of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.

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How is the Social Security Administration Funded?

How is the Social Security Administration Funded?

Everyone knows about Social Security. We are either receiving Social Security Benefits ourselves or we know someone who is. If we are working, we see the reduction in our paychecks. But how is Social Security funded? In this article, we will discuss the four sources of income that fund Social Security.

The sources of income for Social Security are payroll taxes, net interest income earned on the assets of the trust funds, taxes assessed on Social Security benefits, and reimbursements from the general fund.

Payroll taxes provide most of the funding for Social Security. The employer pays 6.2% and the employee pays the other 6.2%. If you are self-employed, you pay the employer and the employee share of the tax which equals 12.4%.

Any year when the payroll taxes collected are greater than the amount paid out in benefits, the excess is put into a trust fund. This fund invests the money in U.S. Treasury bonds, which earn interest. Any money in this trust can be used to fund Social Security.

People in higher income tax brackets have to pay taxes on any Social Security benefits they receive. These benefits taxes go into the trust fund. There they will be invested in U.S treasury bonds or used to pay benefits.

Investing in a U.S Treasury bond is loaning money to the U.S government in return for interest. The money raised from investments in the bonds goes into the government’s General Fund. Once it is in the General Fund, the government can use the money any way it wants. When the government pays back the loan, it is called reimbursement from the general fund. The money is now back in the trust and can be used to pay benefits.

These are the four sources of funding for the Social Security Administration. Payroll taxes, interest from the U.S Treasury investments, taxes on benefits, and reimbursements from the General Fund keep Social Security bankrolled.

 

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