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Saturday, December 01, 2012
Many of us understood this very day was in fact on its way. Social Security will now be formally a really poor “investment.”
“People retiring today are part of the earliest generation involving workers who have paid more in Social Security taxes throughout their own occupations than they'll receive in benefits after these people retire. It is the historic change which will just become worse regarding long term retirees, according to an evaluation through the Associated Press.”
Newer retirees acquiring much less in Social Security than they paid in, marking historic change
Here are the figures:
“A married couple retiring last 12 months, after each partners earned average lifetime wages, paid about $598 thousand in Social Security income taxes throughout their own careers. They are able to expect to collect about $556,000 in benefits if the man lives to 82 and the woman lives to Eighty five, according to the 2011 study from the Urban Institute, a Washington think tank.”
And it is getting even worse, not better…
“Future generations are going to do worse simply because possibly they are going to get less benefits or they are going to pay increased income taxes,” stated Eugene Steuerle, a former Treasury official that has studied this particular issue as a fellow at the Urban Institute.
So let’s consider this from an investment viewpoint. The federal government forces all of us to transfer money in to an account for the future security that's pretty much guaranteed in order to earn all of us any unfavorable fee regarding go back (indeed, future “security” has become defined as making a “negative return”). Meanwhile, they will obtain to use our own money for many those years regarding whatever they feel is the reason for the day.
Once you add all of it up, Personally, i desire to OPT-OUT!
Matt is an Investment Advisor Representative as well as the Chief Advisor of Aaron Matthews Financial Resources headquartered in Elk Grove, CA.
To learn more about Matt just click here.