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Politics : The Citizens Manifesto -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (71)	6/13/2005 9:54:11 PM
From: RetiredNow	Read Replies (1) \| Respond to of 492

I included COL adjustments in both the private account and the existing social security account. Those were figures after adjustment for inflation of 3% per year. So I was assuming that the person's income was $30K per year in today's dollars with a 3% COL adjustment every year. So the figures hold true. As far as 7% goes, it is totally doable. A tax-exempt bond fund will return you 5-6%. That is an after tax return. Throw stocks into the mix over a 44 year period and you will get something between 5-6% and the long term stock average of 10.5%. I chose something closer to the lower end...7%. BTW, I'm a finance guy. I am conservative by nature and by training.