Quote:
Originally Posted by manaboutown
Social Security Calculator | Privatization account vs. S&P 500
The math is shown in this illustration. At age 67 a median income earner ends up with perhaps $1300/mo from Social Security which ends when he dies versus $4,000/mo and $1.25M in an investment portfolio from investing in the S & P which he could leave to his heirs. Social Security is a very, very bad deal!
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You may have overlooked the "insurance value" of your Social Security investment. If you died or became disabled earlier in life, your family would have been entitled to monthly survivor benefits or in the case of your disability, a monthly disability benefit for you and your family.
You're witnessing an unusual market phenomenon at the moment. Suppose you needed to cash out of the market in 2008-2010 when things were not pretty on Wall Street? And don't forget being successful in the market means timing things perfectly, a feat very few of us are capable of doing.
Talk to the experts and very few will tell you that you could have gotten a better deal from private investments to provide the same coverage as SS, plus indefinite COLA increases, however small. It's also doubtful that your employer would have graciously forked over the employer's share of FICA taxes so that you could add it to your investment portfolio.