IMHO, Edward Wyatt and Harold Evensky (a principal at Evensky, Brown & Katz, a financial planning firm in Coral Gables, Fla.), may have forgotten an invisible part of FICA taxes a person pays... the Employer Contributions to FICA. You put that in the mix, and it is truly depressing how much a return Social Security recipients receive.
"But to get that $3,700 a month, a person would have to invest every penny of his retirement savings or Social Security payroll taxes in the stock market his entire work life."
If you include the Employer half of FICA contributions, I figure that the above statement is correct, if someone makes like $6 per hour (working full time) their entire work life.
Of course, I'm not a financial planner, let alone a Principal in a financial planning company. |
