Calculate your new Social Security Benefits

[2centsworth]

http://www.daveramsey.com/etc/social_security/

[Nbadan]

If you think your gonna earn 10.99% on your money yearly, your the one living in La-La Land (as Dave Ramsey likes to say). First of all, the government will shave about 3% off the top of 'your' money for interest it would have made had it just done what it usually does, and invest the money in T-bonds and securities. Initial costs to implement a 4% private contribution for those 55 and under is 2-4 trillion dollars in the first 10 years. Where do you think this money is coming from to pay for this? Can't borrow that type of money.

That's right, from part of the money you would have earned had you earned your average 7.99% in C funds. After all, you don't expect the rich to pay for this now do You? But we are the government, so we'll only take half your unearned income. That leaves you with a tidy 4.0% as opposed to the 3% you would have earned in the current system. So there.

Ok, except that now the government no longer has the extra $115 billion dollars it currently uses in 'extra' SS money yearly, and well, it now has to borrow the money to meet its obligations. This forces interest rates to go up as countries like China and Russia demand a higher return for their cash investment on a credit-addicted U.S. government. This forces federal funds rates to go up which gets passed on by the banks to the consumers, that's you and me, in higher credit card rates, home-loan and car-loan rates.

So for generous 1% increase in my investment money over what I make now, I get charged higher interest rates on my loans, I get a country more dependent on borrowing from China and Russia, countries with dubious nationalistic intentions, and I get to eat double loses on down years because the government is still gonna expect its cut.

Where do I sign up?

[Nbadan]

Oh, and by the way, all this does nothing to help solve SS's long-term liquidity problems, as even the President himself has admitted.

[JoeChalupa]

I did mine at a modest return.

I'm down with the plan.

[Clandestino]

so, what would you rather do dan? just wait til ss runs out of money... i have NEVER heard one constructive thing or possible solution come out of your mouth for anything. you are one of those people who always bitches, but never has a solution. you have probably never done one thing in your life.

[JoeChalupa]

This is a good move by Dubya but I don't how he is going to get it done and from what I've read, the startup costs may be staggering.

[2centsworth]

This is a good move by Dubya but I don't how he is going to get it done and from what I've read, the startup costs may be staggering.

You're totally cool joe. Legit argument. Funds by the way are the exact same ones used in the governments thrift savings accounts, so the returns are dead on accurate.