by Jeremy Wiggins
I highly recommend everyone go check this out. I went on over to the Heritage Foundations website. There they have a neat little tool, it's called the Social Security Calculator. All you have to do is input your age, zip code, and gender, and it figures out an estimated investment into social security. I'll explain using my own figures:
According the Census Bureau the average annual salary from 2007 (which is the most current data I could find) is $50,323. So, this is the number I decided to use. It also gives me my life expectancy at 77.48 years, and a retirement age of 67 (retirement? What's that?)
Now, the calculator told me that I can expect to pay $491,055 in Social Security taxes over my working life for retirement and survivors benefits. Now, for that large amount of taxes I would pay I can expect to receive $3,072 a month in benefits. That is a rate of return of -2.06%. I COULD just stop right there, but the bad news isn't here yet.
Scrolling further down, I found out that if I were able to invest that money ($491,055) in a Personal Retirement Account (PRA), I would have a total of $1,388,950 when I retired. My monthly benefits would have been $11,314 a month, causing me to lose $8,242 a month.
That is at a 4.89% rate of return for my investment. If I decided to take half of that money, that lump sum of $1.38 million dollars (that I will never see) and set HALF of it aside as a nest egg for my heirs, than my monthly allowance would STILL be $5,657!
And we want the government running Health Care? They haven't even got THIS ponzi scheme off the ground and we want to give them more control?