Actually not. I have contributed $59,000 in FICA taxes. I receive $1,630/mo going up 3.5% next year, or, roughly $20,000 a year. I have a life expectancy of 14 years (they offered me 11, but I bargained them up to 14). I expect to receive about $280,000 over my expected life. I can of course, borrow money to pay for an equivalent annuity. My wife, who has a 19 year life expectancy, can expect to receive on the basis of my earnings $10,000 a year or $190 thousands dollars which will go up markedly to $18000 when I croke. Figuring the contingencies, this is a very handsome return on investment, and if I don't want to gamble (I really don't feel that good) I can guarantee the return. People with part of their earnings in the future (like I) will probably get a lower return. I intend to work until I die and have to pay maximum social security taxes and taxes on my social security benefits, but for anyone in my age group with roughly the same of more income history it is a terrific deal. Of course, during my work life I invested vigorously. It turns out, that as brilliant as I am, I invested my money until it wasn't there any more. My Keough plan was wiped out by this last NASDAQ collapse. Damned if Roosevelt wasn't smarter than I was, requiring trust funds to be invested in government bonds.
If you figure it out, I think you will find that OASDI is one of your very best investments, even if you are self-employed (as I have been in part) for 50 years. |
