Reply #7: Interesting GOP Partial Truth Lie - the results of their calculation is

[papau]

below for an age 50 Male retiring at age 66.17 w/ life expectancy of 78.10 w/ today's Earnings of $63,572 as "default based on the US Average for males" investing any private account investing in Large Corporate Stocks-Blue Chips(50.00%) and U.S. Government Treasury Bonds (50.00%).

Taxes paid into Social Security $233,551
Monthly Benefits $1,988
Rate of Return on Monthly Benefits 0.82%
Had Your Taxes Been Invested in a Personal Retirement Account (PRA)
Total Value of your PRA at Retirement $923,549
Rate of Return of your PRA at Retirement 6.22%
With Your PRA You Can:
(1) Spend it All on Yourself Or
Monthly PRA Benefits $7,306 (a lie - The METLIFE Insurance Company requires $185.024 per $1 of monthly pay out - or did in 2nd qtr 2004 - these rates change all the time - which means a cost of 1.352 million for $7,306 - meaning real value is only $4,991 per month for life.
Rate of Return on PRA Monthly Benefits 5.58% (god only knows what this is - ROR is not a correct concept for an annuity)
(2) Create Wealth for Your Heirs by not converting all of the account to an annuity
Monthly PRA Benefits $3,653
Rate of Return on PRA Monthly Benefits 3.14%
Amount Passed to Heirs (Bequest) $781,147 (this is cute - you must live to age 78 and then die as this is the half of the account not used for buying an annuity, which is then invested and grows with $319,372 of addition interest on the $461,774 initial value)

This calculator is intended to be used solely as an educational tool to help citizens better understand public policy issues associated with Social Security. It is not intended for use as a retirement planner. The data, assumptions and formulas used in this calculator are based on information currently available to The Heritage Foundation.

WHERE TO BEGIN ON THE OTHER LIES IN THE ABOVE?

The $ 2 Trillion over next 10 years transition cost interest will increase your taxes unless we let the economy be destroyed by a balloning National Debt/

You should subtract that extra tax and the compound interest forgone on same from any calculation.

The rate of return on you private account is not guaranteed - indeed if we do not raise taxes to cover the transition cost it is likely that the value of US assets will drop and the value of your private account may be near zero.