Tuesday, May 24, 2011

who wants to be a millionaire? retirees...

That's the expected value of what they'll receive in transfer payments from taxpayers over their lifetimes. Of course, they "contributed" a lot of that-- in paying for previous retirees.

The average rate-of-return on Social Security is really lame. But for Medicare, it's a different story.

Here's John Cogan in the WSJ on this topic, some numbers, and ops for reform...


At May 25, 2011 at 3:34 AM , Blogger Sweet Lily said...

That's informative and inspiring!
Thanks for sharing, I enjoyed the visit. :)

At May 25, 2011 at 7:25 PM , Blogger Aspergers.life said...

This comment has been removed by the author.

At May 25, 2011 at 7:27 PM , Blogger Aspergers.life said...

If one is fortunate enough to earn 5 percent on $1-million, they would have a residual annual income of $50,000. Assume they pay capital gains tax, they would keep $42,500 per year; not a huge sum by today's standards. Factor in inflation and $1-million may not be sufficient for retirement.

The Social Security scam is, IMHO, when the government takes the funds by force.

Had the government given me $100,000 for retirement in 1971 (age 18) with the stipulation the fund had to be held in trust in an S&P index fund until age 65, my retirement fund would now be worth $1.34+ million. And I have seven more years to age 65.

Of course the government doesn't think that way; nor should they.

I would be content if the gov't would simply return my SS contributions plus inflation for me to invest on my own.


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