Remember, not only did you contribute to Social Security but your employer did too. It totaled 15% of your income before taxes. If you averaged only 30K over your working life, that's close to $220,500. If you calculate the future value of $4,500 per year (yours & your employer's contribution) at a simple 5% (less than what the govt. pays on the money that it borrows), after 49 years of working (me) you'd have $892,919.98. If you took out only 3% per year, you receive $26,787.60 per year and it would last better than 30 years, and that's with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you'd have a lifetime income of $2,976.40 per month. The folks in Washington have pulled off a bigger Ponzi scheme than Bernie Madhoff ever had.
I didn't try to clean up the language in this message. It makes a better impact as it is.
I didn't try to clean up the language in this message. It makes a better impact as it is.
1 comment:
Several observations: If you want to buy an annuity, rather than contribute to Social Security,
1. Why should your employer contribute to your hypothetical annuity?
2. Why shouldn't the $$ you use be taxed?
3. Thirty-six states do not tax Social Security benefits: your annuity will be taxed, especially if originally purchased with untaxed income.
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