Social Security

[alskahawk]

As per Dave Ramsey today; "If you put $2000 in a Roth IRA when you are 16 years old and never touch it and it grows at the rate the stock market has grown in the past (50 years?)it will be worth 2.6 million dollars when you turned 76 years old."  
 
 My thoughts; Nice to know information. Also points out how bad our government is with our money. We have all put 7.5% of our earnings into social security from out first dollar we earned. Our employers have put in the same amount. So what can we expect for our 15% we have saved our whole life? $800-1500 a month and congress acts like they are doing us a favor.
  Now these guys want a national health care plan. We expect them to fix our borders. Fix our trade deficit. Crime? We may be witnessing the end of Era Americana.

  PS; I am a Democrat.

[sluggish]

alaskahawk,

It is impossible to raise the kind of questions you do in your post and be a Democrat.  Welcome to the light side.

[Wolfala]

You have to contribute to the IRA till retirement to get that amount. That is where the compounding interest comes into play. So, putting the maximum allowable amount per year for the ROTH, times how many years you work up till retirement - then cashing out is how you get that amount of money. Not putting $2,000 in once and then 1 million 50 years later.

[trax1]

You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.

[Donzo]

Originally posted by trax1
You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.

Why?

[trax1]

Originally posted by Donzo
Why?

Paraplegic, bad car accident.

[alskahawk]

Originally posted by Wolfala
You have to contribute to the IRA till retirement to get that amount. That is where the compounding interest comes into play. So, putting the maximum allowable amount per year for the ROTH, times how many years you work up till retirement - then cashing out is how you get that amount of money. Not putting $2,000 in once and then 1 million 50 years later.

 No. contribute once at 16 Years of age. No more contributions. Let it grow in a Roth IRA until age 76.    $2,584,730.16 This is from the calculator at the Dave Ramsey site.

[Donzo]

Originally posted by alskahawk
No. contribute once at 16 Years of age. No more contributions. Let it grow in a Roth IRA until age 76.    $2,584,730.16 This is from the calculator at the Dave Ramsey site.

Link to calculator?

[alskahawk]

Originally posted by trax1
You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.

 My brother in law made it through law school on social security(his father died when he was a junior).
  Shortly after my father retired from the military he was disabled at age 45 He received social security, which made life for my 8 younger brothers and sisters much better. Of course the social security administration would periodically try to get my father back to work. (he was paralyzed on his left side from a brain injury and could barely walk) There were threatening letters, visits, specialists etc. They did every thing they could to make him feel like a dreg on society.
 However, those that receive and haven't paid in or have paid in very little are not the norm. I think any reasonable American supports those in need getting it. The point is the work force paying in 15% and actually getting a negative return. Imagine if the billions collected every year actually got a decent return.

  Go Hawks! Beat Illinois!

[lasersailor184]

Originally posted by trax1
You also have to remember, its not only retirees getting Social Security, I myself have been receiving SS since I was 19.

One of my sister's friends has a "Bipolar" mother.  Because of this, my sister's friend has been receiving from the government $900 per month since she was 10.  She continues to receive 900 per month from the government even though she's over 18.



This is NOT counting how much money the Mother or the rest of the family gets from social security.  Just that the daughter is directly paid 900 per month herself.

[alskahawk]

http://www.daveramsey.com/etc/investmentcenter/dsp_investing_calc_swf.cfm

[Donzo]

Originally posted by lasersailor184
One of my sister's friends has a "Bipolar" mother.  Because of this, my sister's friend has been receiving from the government $900 per month since she was 10.  She continues to receive 900 per month from the government even though she's over 18.



This is NOT counting how much money the Mother or the rest of the family gets from social security.  Just that the daughter is directly paid 900 per month herself.

Does she work?

[trax1]

Originally posted by lasersailor184
One of my sister's friends has a "Bipolar" mother.  Because of this, my sister's friend has been receiving from the government $900 per month since she was 10.  She continues to receive 900 per month from the government even though she's over 18.



This is NOT counting how much money the Mother or the rest of the family gets from social security.  Just that the daughter is directly paid 900 per month herself.

Damn, I don't get that much....wish I did.  I get a few hundred less then that, and I get SSI & SSD

[lasersailor184]

If I'm thinking of the right one, she does do some waitressing, only having started in the past year.  However it doesn't come near the 900 per month she gets from the gub'ment.

[rpm]

People drawing SSI payments are a drop in the bucket compared to the amount of money pulled out of the fund by the government.