Don't count on SSI. The payoff is so bad that you'll be left short even if you get all of it. I decided to calculate how much SSI I would receive for investing 7.65% of my salary for 40 years. The answer is absolutely pathetic. You can calculate your SSI at this site:
https://www.ssa.gov/cgi-bin/benefit6.cgi
You put in your salary and it gives you your monthly payment.
Based on working to 67 yrs old you can expect to receive a full retirement as follows:
$30000/yr $1237/mo = $14844/yr = 49%
$60000/yr. $1793/mo = $21516/yr = 36%
$90000/yr. $ 2348/mo = $28176/yr = 31%
$120000/yr. $ 2904/mo = $34848/yr =29%
SSI will only yield you a retirement of 29% to 49% of your pre retirement earnings. You will need double to triple that to maintain your pre retirement income.
Most investors say invest 15% of your salary in a 401k (I agree with this #). If you just invest the same 7.625 $ that SSI takes and do this for 40 years, you can live well. You can calculate your nut at retirement by using an engineering economics formula for an F/A ratio. This is a Future amt / Annual payment formula.
F/A=(((1+i)^n)-1)/i
i=interest rate as a decimal 8%=0.08
n=years
A= the amount invested per year
for i=0.08 and n=40
F/A=259.05 say 259
If you invested the same 7.625% =0.07625 of your salary that the government takes and invest it at 8% your nut would be
For 30k
A=30000x0.07625=$2287
F=2287×259=$592333
If invested at 8% at retirement, you could make $47396/yr or $3949/month.
That is 3949/1237=3.2× ssi. That is 1.5 x your pre retirement income. 8% is conservative as the market returns 10% per year on average. As Dave Ramsey would say, live like no one else so later you can live (and give) like no one else.
Here is a break down of salary, monthly ssi,monthly 401k, with a nut that never goes down using 40 years and 8%
Income Income SSI $/ NUT. 401k $/
$ /Yr $/Month. Month $ MONTH
30k. 2500 1237 592462 3949
60k. 5000. 1793 1184295 7900
90k. 7500. 2348. 1778387 11849
120k. 10000. 2904 2369850 15799
Investing in a 401k over time beats SSI
Dunn Kruger wants to offer a perspective and information that is beneficial to all people. You can trust that all statements are thought to be accurate and made in good faith. Please independently verify. Please check the math because Dunn Kruger may be wrong.
I'm going to step back a bit from burdening everyone with my long winded posts. My focus was to promote that all humans are created equal with an equal amount of time in each day. I wanted to be one more voice that with hard work and skill training each individual can meet their potential. The hardness of the path is what gives the achievement its value. Serve others more than you demand others to serve you. Social assistance and social promotion is more likely to hurt you by reducing your need for skill acquisition. That's basically it. Because of believing these truths that should be self evident, @dunnkruger naturally aligns more with conservatives. These are not only conservative principles, they are available to all. It pains me to see people have been convinced that they are disadvantaged and are waiting to be lifted up. I fear that they will wait so long that they will never advance to their fullest distance. It is never too late to start. Please start now.
IMHO the dirty little ...
@dunnkruger was looking for secular comment on "serve your fellow man". But most were Biblical
Think about the result of serving others first VS waiting for others to serve you before reciprocating.
If everyone insist on being served before reciprocating, then everyone is just waiting and nobody recieves anything
If everyone serves initially, there is a pretty good chance that everyone will receive something from one or more.
Maybe this is why your may come at the end of the week. Maybe this is why the tip comes at the end of the me.
www.churchofjesuschrist.org/comeuntochrist/believe/bible/bible-verses-about-helping-others
If
work = service to your fellow man
$ = reward for service to your fellow man
$ = work storage = service storage
$ = reward to others who serve you
Net service storage = wealth
Net service demand = debt
Therefore
It is better to serve others than demand service from others.
It is better to give than to receive.
@dunnkruger
https://www.saidhasyim.com/post/peak-lifes-work/exploring-the-meaning-of-work-through-service/
