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To: Sequoyah101

A couple of weeks ago, I crunched the numbers of someone making $10/hr working 40 hrs per week. If that person was able to invest 12% of his income into an investment fund earning 6% until he/she retired, that person could draw a monthly check of $2300/month from age 65 through age 95. I don’t know a single retiree who draws that much from Social Security. And if the person dies, his family gets an actual inheritance so that future generations will not be born into poverty. There is no such inheritance with Social Security. The cycle of poverty is continued generation after generation.


14 posted on 08/07/2011 8:42:41 PM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat

Pretty much the truth. I’ve crunched the same numbers years ago. For the squeamish, just about any investment house worth its salt would sell that insurance as well and make money, lots of money in all probability.

So tell me again why we have SS, Medicare and Medicade instead of some reasonably regulated reinsurance business?

Oh yeah, I forgot about the guy that says, “I’m from the government. I’m here to f...elp you.”

Funny, I’ve thought this way since I was a little kid. I like to think it is rubbed off self-sufficiency from my homesteader grandfather, pulled up by his bootstraps father and in-your-face independent mother.


15 posted on 08/07/2011 8:52:29 PM PDT by Sequoyah101 (Half the people are below average.)
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To: Hoodat
I don’t know a single retiree who draws that much from Social Security.

My latest statement says that if I retire at 66, I'll get $2062/month. If I wait until 70, I'll get $2865/ month.

Of all the people I know who have retired, none have waited past 62.

17 posted on 08/07/2011 8:53:30 PM PDT by Prokopton
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To: Hoodat

“....into an investment fund earning 6% “

How do you justify this assumption.

A better assumption would be 1%:

160 hrs a month x $10 per hour x 12% x 40 years

@6% = $382,366 - except you won’t find a 6% investment today
@1% = $113,259

@1%, he’d be able to withdraw $2300 per month for 50 months - a bit more than 4 years.

He could also withdraw his usual $1600 per month for 73 months, or about 6 years.

Or, he could spend it all along the way, collect food stamps, EITC, then claim disability and get SSI, subsidized housing, a free obama cellphone, EBT card, medicaid....

That’s why these programs are popular. Everyone likes to say the government owes them the equivalent of their social security payments with optimally invested returns. They then change their tune with medicare, and insist that the government owes them medical care, no matter what the inflated cost because they “paid”.

No matter what people were told, they were simply current year taxes, with benefits paid with current year taxes.

It is a foregone conclusion that the benefits will not be paid as supposedly promised. It’s just a matter of how they will not be paid - whether not paid outright, through benefit reductions & eliminations, means testing, inflation, or some other creative means.

Everybody cannot have everything they think they are due.


33 posted on 08/13/2011 8:02:26 AM PDT by RFEngineer
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