"When you retire, your annual benefit would be docked by the amount of money you contributed to your private account, plus 3 percent a year, plus each year's inflation rate. For example, if you contributed $1,000 with inflation at 3 percent, you'd lose $1,060 in benefits—your contribution plus 6 percent "interest." Over 35 years of $1,000 ontributions, your promised retirement check might be reduced by roughly half ($12,000 a year),"
Tell me about this. 7% is sort of the magic number for average gain, right? So, say I put in (very hypothetical
"me", cuz I'm 60, and wouldn't do it if I was 20, even) $1K, from salary of 50K. So, my 7% annual gain, -6% interest means I make $10, but lose the 1K in bennies. And before figuring in management fees?
If what I said makes sense, does the plan make any, even for a kid? (Ignoring the pirates, of course, who would make out just fine).
Rat |
