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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (213551)	12/18/2004 9:24:45 PM
From: neolib	Read Replies (1) \| Respond to of 1575942

Yes. The math is good, but your missing one thing. The real rate of return may very well be 4-5%, but the return prior to inflation will be more like 7-8%. If you want to compare apples to apples, then you need to reduce the gov't return you're getting on your SS contributions from 2% down to -1%, then compare that negative return to the 4% you cited. That would be apples to apples. Perhaps, but the next 20 years are going to see a major shift in the USA's position economically in the world. That might well make your 7-8% wishful thinking. The dollar might be shifting down easily half in value or worse. Do you have a link for the 2% reduction in benefits? That seems very slight for allowing you to take $1K/yr out of the system. I'd think everyone would sign up at that rate.