The average rate of return on mutual fund investments over the past 30 yrs; which would be the life work history of an average person; is approx. 5.5% annually. Inflation runs about 3%; so you get 2.5% on your money. If your average salary over the 30 yrs equals 20% over the mean average for the country; you would need to put 30% of your income every month into the mutual fund; every month w/o fail, for the entire 30 yrs. to enable you to live at your current level for 20yrs. Assuming you retire at 67 and don't get sick or anything you can expect to run out of money at age 87. Unless of course there is a run up of inflation like we had in the 80's in which case you lose. Remmember; once Social Security goes so goes medicare. So don't get sick. SS allows for inflation by the increasing income from salary deductions; since salary goes up during inflated times. Thats why it works so well; higher productivity = less workers for the same input. A perfect system that maybe needs to be tweaked occasionally, but then the stock market sharks cannot get their hands on your money so they get anxious and mad. Great Britian tried a personal account system, and now they are trying to figure out how to fix it because it doesn't work; so they are examining our SS system for some help. I know you know this, but it is soo obvious of a money grab with no benefit to the working people that I am astounded anyone tries to sell it to reasonable people with a straight face.
Posting Rules
Members
Search
Help
Register
Login
Get a T-Shirt!
