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Tuesday, September 13, 2011

More Facts And A Reality Check

The amount of unadulterated crap that is being spread about the absolute evils of Social Security is simply stunning.  Here is the truth of the matter.

Make these modest assumptions and follow the math.

1)     A young person gets a job at, say, twenty-five, that pays $20,000.
2)     At current rates, 6.2% for individuals and 12.4% for employers, a total of $3,720 will be contributed to the SS fund.
3)     Invest that amount to get a 10% return (the stock market has averaged 10% over the last 100 years).
4)     Forty years later, when our young person is sixty-five, that $3,720 will be worth $149,358!!

Then go ahead and give him/her a raise to $22,000 in year two, etc. etc. until you have done all the math for the next thirty-nine years.

Now do you get the idea that everybody is lying to you?

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