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To: Lazarus_Long who wrote (42649)12/5/2005 10:32:04 PM
From: Lazarus_Long  Read Replies (1) | Respond to of 90947
 
The results of the calculations at step 2 are heavily dependent on the compounding rate- -and a fair rate for the US economy is very dependent on over what period and how it is measured. If we assume a 5% rate, the annuity accumilated at age 65 is only $3211 and that yeilds only $887 a year income to age 75. It also has to be noted that in both cases, calculated this way to give these returns, he's bankrupt at age 75- -or has at least exhausted his SS funds.