social security

[357]

I'm 32 and I've paid into it since my first job at 16. If they would give me the option of opting out now I would. Even if I had to sign off any right to the money I've paid in so far, just so long as I didn't have to pay any more in, I'd do it in a heartbeat.

The original promise of SS was a 2% return on your money. Evern since the fed started dipping into those funds, that has dropped. I know people have fears about the stock market, but on the long term average is actually very good. Way above 2%.

Average Stock Market Return per year: Last 5, 10, 20 ... Years
Since 1900 (end-of-year 1899), through 2010, the average total return/year of the DJIA (Dow Jones Industrial Average) was approximately 9.4% -- 4.8% in price appreciation, plus approx 4.7% in dividends. (Some numbers won't add up due to rounding.)

Since 1929 (End-of-year 1928 -- i.e., before the crash), thru 2010, the return was 8.8% (4.6%, plus 4.3%)

Since end-of-year 1932 (i.e., after the crash): 11.2% (7.0%, plus 4.2%)
The average annual stock market return for the past twenty-five calendar years, was 11.2% (8.4%, plus 2.8%)

Stock market returns for the last 20 years: 10.2% (7.7%, plus 2.5%) [see below for additional 20-year periods]

Returns for the last 10 years, 3.1% (0.7%, plus 2.4%) [see below for additional 10-year periods]

For the last 5 years, 4.2% (1.6%, plus 2.7%)

For 2010 the stock market (Dow/DJIA) total return was 13.8% (11.0% plus 2.8%)

2010 year-end dividend yield was 2.5%

My point is privitization is not evil or squandering away our retirements. A system like the previous president proposed where each person controls their SS contributions would have been a huge step in the right direction. The whole idea that the government is so much smarter than we are that they have to take our money by force to prevent us from pissing it away, only to "maybe" give it back later is rediculous. It's not their money. It's yours. Never forget that.

[Commander Quan]

Hope for the best, but plan for the worst. For a real world argument for privatizing SS check out this NPR article.

http://www.ncpa.org/pdfs/ba215.pdf

[cricky101]

It's not fair to treat Social Security as a retirement plan -- it's an insurance policy. You pay into the pool and get a return when you need it (hopefully.)

[SteveH]

Ahh...Shouldn't this be in the 'Jokes' forum ??