My post from Tuesday generated quite a few comments. One of those comments was one from Jim. I copied the opening paragraph to his comment below:
Iâ€™ve paid the maximum every year for 46 years and invested even more than that in the stock market. Funny thing â€“ one day I woke up and all my money in the stock market was now in the pockets of the bankers on Wall Street â€“ and all I have left is my Social Security pennies. OK â€“ Iâ€™m back at work again (Hello â€“ Welcome toâ€¦..) and what I can earn and the savings I put away (in Social Security) are making ends meet.
I was curious as to what the maximum contribution to social security was over the last 46 years so I looked it up. I found the information here. I took that information and put into a couple of pretty little graphics for you, which you can see here:
From his comment, we know that Jim made AT LEAST $2.17 million over his 46-year career. We also know that he paid in over $252,000 into Social Security over his career. Looking at the Social Security website, I see that the maximum benefit amount is currently $1,809 per month (click here and scroll down to Table 2.A27), which implies an 8.61% yeild ($21,718.80 ÷ $252,127.95 = .0861 or 8.61%).
Now, some will say that’s a great return. However, I think it proves that Social Security is in fact a ponzi scheme. I mean, how else can they pay such a high-yielding payment compared to every other investment?