Boortz is lying thru his teeth on Soc Sec ---- Impossible Math

[cthrumatrix]

another poster said this is what he said today:

" Would`t it be great that when you retire that you would get a monthly check that would be more than when you were working? Well that would be true if we could privatize S.S. and control our own money."


Here is REALITY:
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You are 32 years old and retire in 30 years ...make $30,000 / yr.



How much can you save over 30 years?
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4% of $30,000 growing at 7% for 30 years = $123,000 (7% IF lucky)


What is a lifetime payment calculation of your $123,000?
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At age 62 your $123,000 in a life annuity is no even close to your $30,000 salary you made....

it might be closed to $8,000 - $10,000 year.


The point is Boortz is "lying"......... he should be CALLED on his Crap!

[RobertSeattle]

1. If Bush said 1+1 = 3

Boortz would fall in line and try to convince his listeners of it - and most would.

If you invest $1200 (4% of 30,000) ever year of the 30 years of 7% interest it comes out to around the 110-125K figure - depends how you calculate the compounding.

The whole SS arguments can really be thrown out of whack with compound interest - almost any interets rate over a long period of time will make the money really grow.

And if it is so great, let's have Social Security invest the money since that would minimize transaction fees!

[slater71]

2. I was the poster and you are correct.

This is how this shit gets put out there and if they say it enough, it becomes true. How many times have you heard about Galveston county Texas?

[unblock]

3. i thought they're talking about investing 4% of your socsec taxes

not 4% of your total income.

due to the cap at around 90k, no one pays as much $12,000 into socsec, even counting the employer's portion. the $30,000 figure is a fraud.

[cthrumatrix]

6. it's 4% of your annual salary which is $1200 per year....calcs are right

in fact bush talekd about only $1000 yr

[unblock]

7. gak! that's 1/3 of the combined socsec take!

well, that would explain the insanely high upfront costs, in the trillions!

[Name removed]

4. Deleted message

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[jmowreader]

5. The Boortz math works in one instance

One of the investment houses used to run a series of ads in which they showed some luxury item like, oh, a Harley, talked about its performance and style, then said the price was "the one-point-eight million dollars that you'll lose at retirement by buying this motorcycle instead of investing in a SchlockCo Retirement Annuity."

What you're expected to do to make the Boortz/Bush privatized retirement fund bullshit math work is to get a job that pays six figures then invest every nickel you have after buying food, utilities, a cheap used car and Goodwill clothes into your retirement fund. And then there will be a lot of money for your retirement planners to work with, and you'll be able to maintain your current lifestyle--which was artificially restricted because you saved all your money for retirement.