Have you noticed, the government is now referring to our Social Security checks as a â€œFederal Benefit Payment.â€ This isnâ€™t a benefit â€“ its earned income! Not only did we all contribute to Social Security but our employers did too. It totaled 15% of our income before taxes.
If you averaged $30K per year over your working life, that’s close to $180,000 invested in Social Security. If you calculate the future value of your monthly investment in social security ($375/month, including both your and your employerâ€™s contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you’d have more than $1.3 million dollars saved! This is your personal investment.
Upon retirement, if you took out only 3% per year, you’d receive $39,318 per year, or $3,277 per month. Thatâ€™s almost three times more than todayâ€™s average Social Security benefit of $1,230 per month, according to the Social Security Administration (Google it – itâ€™s a fact). And your retirement fund would last more than 33 years (until you’re 98 if you retire at age 65)!
I can only imagine how much better most average-income people could live in retirement if our government had just invested our money in low-risk interest-earning accounts. Instead, the folks in Washington pulled off a bigger Ponzi scheme than Bernie Madoff ever did. They took our money and used it elsewhere. They â€œforgotâ€ that it was OUR money they were taking.
They didnâ€™t have a referendum to ask us if we wanted to lend the money to them. And they didnâ€™t pay interest on the debt they assumed. And recently, theyâ€™ve told us that the money wonâ€™t support us for very much longer. But is it our fault they misused our investments?
And now, to add insult to injury, theyâ€™re calling it a â€œbenefit,â€ as if we never worked to earn every penny of it. Just because they â€œborrowedâ€ the money, doesn’t mean that our investments were a charity!
Letâ€™s take a stand.