Who will teach people how to invest? Many people in this country have absolutly no idea how to make thier money grow in a stock market account....or what to invest in. Is there any guarantee that you will get back what you put in...or do you have to hope and pray you have made a good investment choice? I don't see it as Social Security.....there is no security in having people's retirements privatized and at the mercy of the markets and at the mercy of people's investment choices. Not to mention that there is no guarantee that you get back what you have paid in if you are playing the market and if you have no experience with investing..then you could loose it all.
it wouldn't be hard to direct everyone on how to invest it all in a stable bond / secure annuity....then they wouldn't gain much, but they would still get more than they would in SS....
then if people want to be adventuresome / gamble, they can learn if they want to. (just as it is now)
Here, let's do this with some real numbers. Let's say you make $20,000 a year (obviously very low) and you put in your 7% and your employer's 7% into an account. If you start when you are 18 and make 6% interest (over a working lifetime, VERY easy to do), you'd end up with $723,934 at retirement age (this is with no raises at all). If you then switched to a more conservative investment that only gave 4% interest, you could withdraw $28,957 a year and NEVER even touch your principal. With that same $20,000 a year salary and no raises, you'd get less than $15,000 a year with social security.
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mom, I'm going to try and spell it out one more time.
maybe it wasn't what you meant, but you did say it:
http://messageboards.ivillage.com/iv-psmomspol/message.asp?webtag=iv-psmomspol&msg=4627.258
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-Kristen
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it wouldn't be hard to direct everyone on how to invest it all in a stable bond / secure annuity....then they wouldn't gain much, but they would still get more than they would in SS....
then if people want to be adventuresome / gamble, they can learn if they want to. (just as it is now)
-Kristen
<everyone should be allowed to do as follows:
1.
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How do you know this as fact?
So are you recommeding that the SS system be dissolved, or that people should be able to "opt out" of the system?
-Kristen
Here, let's do this with some real numbers. Let's say you make $20,000 a year (obviously very low) and you put in your 7% and your employer's 7% into an account. If you start when you are 18 and make 6% interest (over a working lifetime, VERY easy to do), you'd end up with $723,934 at retirement age (this is with no raises at all). If you then switched to a more conservative investment that only gave 4% interest, you could withdraw $28,957 a year and NEVER even touch your principal. With that same $20,000 a year salary and no raises, you'd get less than $15,000 a year with social security.
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in reply to this statement-
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You can't state this because it simply has not been proven.
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