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


To: Amy J who wrote (213571)12/18/2004 10:15:46 PM
From: RetiredNow  Read Replies (1) | Respond to of 1575619
 
Yes there is.

Everyone who writes any articles about social security estimate that you earn anywhere from 2 to 2.6% on your money that you contribute to social security. However, after inflation of around 3%, it's a negative real rate of return of -1%.

Most economists will tell you to expect a return of 7-8% over the next couple of decades. After inflation, that's a real rate of return of 4-5%. Then take out 1.5% for mutual fund fees and you're down to 2.5-3.5%. Still much better than what you are currently earning with the gov't.