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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (84826)	11/2/2000 4:18:49 PM
From: Les H	Read Replies (1) \| Respond to of 132070

Unfortunately, the program creates an even greater dependency in later years since the payouts will lag actual inflation. All the money has already been confiscated and spent on prior beneficiaries and on other programs. By the time one starts collecting, it's too late.

To: Skeeter Bug who wrote (84826)	11/3/2000 4:18:29 PM
From: benwood	Respond to of 132070

Skeets, using a simplified model, and noting that (1+.05/12)^12 = 1.0512 (net effect of monthly compounding), I show $574,114 after 40 years. By drawing down zero principal, you could manage $2449/month in perpetuity. If you compounded the same contribution at 8.3% annually (or about 8.0% monthly) then you'd have $1,314,307 after 40 years, or enough for $9090 per month forever. 5.12% compounded annually Year Cont. Earn. Total 1 4500 115 4615 2 4500 351 9467 3 4500 600 14567 4 4500 861 19928 5 4500 1135 25563 6 4500 1424 31487 7 4500 1727 37714 8 4500 2046 44261 9 4500 2381 51142 10 4500 2734 58376 11 4500 3104 65980 12 4500 3493 73973 13 4500 3903 82376 14 4500 4333 91209 15 4500 4785 100494 16 4500 5260 110254 17 4500 5760 120514 18 4500 6286 131300 19 4500 6838 142638 20 4500 7418 154556 21 4500 8028 167084 22 4500 8670 180254 23 4500 9344 194098 24 4500 10053 208651 25 4500 10798 223950 26 4500 11581 240031 27 4500 12405 256936 28 4500 13270 274706 29 4500 14180 293386 30 4500 15137 313023 31 4500 16142 333665 32 4500 17199 355364 33 4500 18310 378173 34 4500 19478 402151 35 4500 20705 427356 36 4500 21996 453852 37 4500 23352 481705 38 4500 24778 510983 39 4500 26278 541761 40 4500 27853 574114