clinging to social security? i’m afraid you’re dumb
The rate of return on Social Security is 2 percent or less and since 1926 the average rate of return on the stock market has been 7.56 percent.
In 2017, the government will begin to pay out more in Social Security benefits than its collects in payroll taxes - and shortfalls grow larger with each passing year.
Every year we sit and wait to act on Social Security it costs an additional $600 billion dollars.
$10,000 invested in the Social Security Trust Fund in 1998 would be worth only $11,700 today. However, $10,000 invested in the Federal Employees’ Thrift Savings Plan, evenly distributed between bonds, andstock and blended funds, would be worth $42,173.
read the rest at gop.com.
read our previous comments on social security here:
my retirement goes up in smoke, SSA shrugs it off
social security calculator
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First off, could you provide the investment details in turning $10,000 into $42,173 between 1998 and 2005 - a period of recession. That’s almost a 50% yearly rate of return - which would be amazing even during the best economic times. I checked the interest rates on EE bonds the other day and they were 3-4%, ING direct has one of the best interest rates on savings accounts at 3%, and my 401(k) has actually been losing money recently in the stock market - so I would love to hear the secret.
While I totally side with the GOP on their social security reform efforts, those kind of empty statements and inflated promises are unproductive.
On the other hand, I saw a commercial on CNN (wouldn’t you know it) about the privatized accounts, where it was a slot machine with a voice explaining something to the effect of ‘If Bush’s privatized accounts would take effect, 7 out of 10 workers would actually LOSE some of their retirement benefit money. Keep the GUARANTEED benefits you deserve. Don’t let Bush gamble with your future.” - or something stupid like that. First of all - the statistic of 7 out of 10 losing money isn’t true - unless it’s the 7 out of 10 that opt to NOT enroll in privatized accounts and continue getting the horrible rate of return through the current system. secondly - the current benefits are not GUARANTEED either politically or financially to anyone - nor will any fix to social security be permanent, or guaranteed. They thought they fixed social security in the 70’s, but demographics are constantly changing, so nothing is guaranteed, nor permanent with social security.
Private accounts may not totally solve the solvency problem, but they would do a great deal toward off-setting the effects of having to reduce benefits (in the end you’re going to have to either reduce benefits or raise taxes). The Democrats want to raise taxes (we already pay 12% that we won’t ever see - I don’t want to pay more), but with private accounts they wouldn’t need to reduce benefits as far; and for those that prefer the VOLUNTARY personal savings accounts, they could very likely receive MUCH higher rates of return plus hold onto it as an asset which they could bequeath to a spouse or children when they die - a benefit unavailable in the current system.
I’m glad to see Bush is so determined to reform social security - and privatized accounts are a smart way to help do so.