Posted by KOHR Productions on Mon, 05/19/2008 - 04:57 in Well It's true. Here is a mentor of mine in the Gold and metals markets that got what he paid for at 70+ in age.
Quote:
"It's true the Labor Department consumer price index is not to be believed. They've been fudging the numbers for years. Even so we Social Security recipients still get annual adjustments - puny as they are. My take went up 2.3 percent in 2008.
I didn't sign up for Social Security until I was 70. My first monthly check paid me back everything I had put into the system between 1946 and January, 1961. (Not adjusted for inflation, but startling just the same!)
To show how this was possible; When Karen and Kathy were born I was paying the maximum FICA tax...$54.00 per year. When David was born I was still paying the max, which had gone up to $94.00 per year. It was not until 1959 anybody paid over $100.00 a year in FICA taxes.
Well, the years have passed and I have now got back every dime my employers and I put into the Social Security system, adjusted for inflation, and I am now living directly out of YOUR pocket. Thank you! Please know I am not wasting your money on wine, women and song but am living a prudent life.
But seriously...and to get to your point....I don't blame the masses for being oblivious to what's being done to them. The relationship between money and man is confusing even before the politicians get at it with their smoke and mirrors. I think if we can keep hammering on the fundamentals of money a significant number of people may start asking the questions that will lead to action. Most revoloutions were born amidst monetary chaos, or - in the case of the US - the perception of unfair taxation. I say BRING IT ON! ~JW"
I know it's not much but it did pan out for one of us.
KOHR Mann
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Over the course of my career I paid about $90k into SS and my employer paid an equal amount, for a total of $183,000. If that money had been invested in 6 month Cds over that period of time it would have been worth about $387,000 by 2004 when I retired. I retired at age 55 so I could not collect SS for another 7 years. So let's say I just let the money grow in Cd's . By the end of 2007 it would have been worth $445,000. We don't know what the interest rate will be in the future but assuming it stays at the current rate of only 2.86% until 2011, when I become eligible to collect SS, it would be worth $498,000.
Now if I had the choice to either take the money or collect the SS payments I'd take the money.
BTW Over the next 75 years SS is underfunded by trillions of dollars.
and I wouldn't expect anyone under the age of 40 to get out what they put into it