Time To Learn Tuesday: You pay 6.2% of your check into the social security pension plan. You may not know that your employer pays an additional 6.2% of your paycheck into a pension plan. This is a total tax liability of 12.4%. If you retire and take benefits at the age of 62 after making $40,000 per year, your monthly income will be roughly $925.00. Let’s say that the government allowed you, starting at the age of 20, to invest 10% of your social security tax into a mutual fund making an annual return of 10% per year. Your mutual fund would have a value of roughly $270,000 at the age of 62 and provide you with a monthly income of $1,124! That’s more than double the current social security payout. All I’m saying is I figured that out in 20 minutes and politicians have been trying to figure this out for 20 years. Something is wrong here.
Posted on: Tue, 21 Oct 2014 12:41:18 +0000
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