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Reply #16: Went about it all wrong.... [View All]

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KingLarryXVII Donating Member (13 posts) Send PM | Profile | Ignore Fri Dec-17-04 10:09 PM
Response to Original message
16. Went about it all wrong....
Edited on Fri Dec-17-04 10:13 PM by KingLarryXVII
lets take your $30,000 a year example...

Now this is assuming the same salary for the entire length of your career but lets look at working from 24 to 64 to keep things simple...

Lets put that $2250 (to be more exact than the 2500, i know you were just estimating) in an account at 5% interest. Do some basic algebra,

1.05^40 = 7.04 * 2250 = $15840 from you first years earnings, now we take the next year...

1.05^39 = 6.70 * 2250 = $15085, thats over $30,000, an additional years salary, from just your first 2 years of work, a little better than $19,200 (2 years on SS).

Now do all the math out and that $2250 yearly investment turns into a hefty $285,389.47

Lets divide that by 9600

$285,389 / $9600 = 29.72 or about 30 years

Now that means if you live past the ripe old age of 94, then Social security is a good investment. But when the average lifespan is in the seventies (maybe eighties for women now, I'm not looking this up) then for most people this is not the best investment for them.

This is with a 5% interest rate. Of course you could go for a higher interest rate for a little more risk, but i went with a low rate to prove that you can stay at a very low risk level and still make more than SS could ever give you.
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  -The Social Security Scam of bush: In a nutshell... rasputin1952  Dec-17-04 01:16 AM   #0 
  - kick! Good post.  Liberty Belle   Dec-17-04 01:24 AM   #1 
  - It boils down very simply to this..  tridim   Dec-17-04 01:26 AM   #2 
  - A law MUST be passed to keep the SSA trust fund CLOSED to  Sugarbleus   Dec-17-04 11:34 PM   #18 
  - The savings and loan fiasco.  pa28   Dec-17-04 01:51 AM   #3 
  - And all the people who UNexpectedly end up Disabled and need SSDI income  zann725   Dec-18-04 12:32 AM   #19 
  - kick  Swamp Rat   Dec-17-04 02:15 AM   #4 
  - Did you know that FEDERAL EMPLOYEES don't pay social security?  flordehinojos   Dec-17-04 02:23 AM   #5 
  - How does the Federal Retirement Fund work and who...  whistle   Dec-17-04 11:23 AM   #7 
     - I am not sure ... I will try to find out and post whatever I find out a  flordehinojos   Dec-17-04 12:16 PM   #12 
     - PREVIOUS REPLY UPDATE: Federal Pensions are manage by the Federal Civil  flordehinojos   Dec-17-04 02:36 PM   #14 
        - Reagan and his evil minions laid the ground work for the new-age  rasputin1952   Dec-17-04 09:32 PM   #15 
           - i so agree with you ...  flordehinojos   Dec-18-04 02:31 PM   #25 
  - Social Security are tax free funds correct...  whistle   Dec-17-04 03:45 AM   #6 
  - I was making my point in the simplest of terms. SS is complicated,  rasputin1952   Dec-17-04 11:35 AM   #8 
     - You've nailed it Friend.....  Dyedinthewoolliberal   Dec-17-04 12:10 PM   #10 
        - This scam is the greatest 'gift' the bush maladministration has ever given  rasputin1952   Dec-17-04 01:01 PM   #13 
  - The scam is that the bankers walk away with all your money, then it gets  radwriter0555   Dec-17-04 11:56 AM   #9 
  - kick ! n/t  jarab   Dec-17-04 12:15 PM   #11 
  - Went about it all wrong....  KingLarryXVII   Dec-17-04 10:09 PM   #16 
  - You miss a point though....SS is only based on the last 3 years you worked  rasputin1952   Dec-18-04 09:40 PM   #27 
  - *sigh* you missed the point  KingLarryXVII   Dec-18-04 11:50 PM   #34 
     - Why not invest and go with SS?  rasputin1952   Dec-19-04 10:23 AM   #38 
     - Your "numbers" ARE BULLSHIT!!!!  amBushed   Dec-19-04 10:49 AM   #39 
     - And thats where SS is failing  KingLarryXVII   Dec-19-04 12:57 PM   #40 
     - People don't pay into it their whole lives...  bleedingheart   Dec-21-04 09:33 PM   #50 
  - DEDUCT insurance premiums...  sandnsea   Dec-19-04 03:42 PM   #42 
  - SUPERB Rally piece!!  Sugarbleus   Dec-17-04 11:31 PM   #17 
  - The whole neo-con agenda about 'reform' is really destruction of SS  rasputin1952   Dec-18-04 09:54 PM   #28 
  - SS is a good investment, just as you say...covering your butt when all  rasputin1952   Dec-18-04 11:11 PM   #32 
  - Late-night kick for an excelent post...  KrazyKat   Dec-18-04 03:57 AM   #20 
  - He is trying to outdo his brothers S & L embezzlement scheme.  TWiley   Dec-18-04 04:18 AM   #21 
  - An uphill fight.  Disturbed   Dec-18-04 04:42 AM   #22 
     - I really feel that our first priority should be the 1st Ammendment.  TWiley   Dec-18-04 07:25 AM   #24 
     - I agree 100% about the spinelessness of the media...  rasputin1952   Dec-18-04 11:50 PM   #33 
     - Sure it is an "up-hill fight"...but not ALL of the media is on bush's side  rasputin1952   Dec-18-04 10:57 PM   #30 
  - After the Bush Stock Market Bust,  shayes51   Dec-18-04 07:04 AM   #23 
  - *sigh*  KingLarryXVII   Dec-18-04 06:36 PM   #26 
  - I did read your post, and responded...  rasputin1952   Dec-18-04 10:01 PM   #29 
     - My guess is that your friend doesn't grasp the "big picture" with SS.  JanMichael   Dec-18-04 10:59 PM   #31 
     - I posted that before you responded....  KingLarryXVII   Dec-19-04 12:01 AM   #35 
        - Social Security also pays if you become disabled  idiosyncratic   Dec-19-04 12:12 AM   #36 
        - I am not trying to say you can't invest what you want...  rasputin1952   Dec-19-04 10:17 AM   #37 
        - It's a moral responsibility to the elderly  sandnsea   Dec-19-04 03:44 PM   #43 
           - ...  KingLarryXVII   Dec-21-04 01:07 AM   #45 
              - That is patently untrue, SS can be there for what it was designed for...  rasputin1952   Dec-21-04 08:33 PM   #47 
  - national wealth redistribution and the role of government are the two  pinto   Dec-19-04 02:22 PM   #41 
  - the role of the government  KingLarryXVII   Dec-21-04 01:12 AM   #46 
     - Very poor argument there. If a 'group' can get your money, and the money  rasputin1952   Dec-21-04 08:42 PM   #48 
     - taxation is, by definition, redistribution of money and a govt role.  pinto   Dec-21-04 09:24 PM   #49 
  - As I looked over these posts again, I am reminded of what Novak  rasputin1952   Dec-19-04 09:15 PM   #44 
 

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