September 12, 2012

Are your Social Security taxes a good investment?



“Will you get your money's worth from paying your Social Security taxes? If I received a dollar every time I heard a "no" answer to this question, I could retire right now! Unfortunately, many of these "no" answers are based on opinion, not facts and figures” according to consulting actuary Steve Vernon. (An actuary is a professional who deals with the financial impact of risk and uncertainty).
“One authoritative answer comes from the actuaries at Social Security, who recently released a report in which they estimated the real rates of return that various hypothetical workers might receive from the contributions they and their employers pay into Social Security. This comprehensive analysis suggests that the answer to the question is "yes" for the vast majority of workers.” This analysis should be mandatory reading for all US adults.  Keep in mind the meaning of “real” as you read. Real returns mean they have been adjusted for inflation. Read the article at: http://www.cbsnews.com/8301-505146_162-57508274/are-your-social-security-taxes-a-good-investment/

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