And my Tea Party was hateful?

Friday, October 24, 2008

Hands off my 401k

The House Democrats can not seam to keep their grubby hands out of my wallet. The latest and greatest scheme requires that an additional 5% of my income go to the failing social security system and the removal of all tax breaks on 401k investment. The best way encourage investment is to tax it more (eyes rolling). My meager retirement savings have lost value over the past year, but it is still a better investment then social security. I did some math. Brace yourself.

I did the math on this one. I pay $100 per check in social security. My employer matches that and I get 26 paychecks a year. I will work until the age of 68, when I am eligible to collect my social security. I will have spent 45 years in the work force. My life expectancy is 82 (with my blood pressure, diet and habits that is really optimistic, but lets use it anyway).

$100 My money
+$100 My boss’s money
X 26 Number of Paychecks per year
X 45 Number of Years in work force
$234,000 Total contributions to Social Security

$648 Monthly anticipated Social Security Payout
X 12 Number of Months in a year
$7,776 Annual Social Security Payout
X 14 Years in retirement (82-68=14)
$108,864 Total Social Security Payout

$234,000 Total contributions to Social Security
-$108,864 Total Social Security Payout
$125,136 Lost money

That is a 53% loss. Despite the market chaos, my 401k only lost 12%. Which is a better investment. The House Democrats are using this opportunity to cease more of my hard earned money. Where did the $125,136 go? Now they want 5% more of my income! This is the change we deserve? Argghh!

But no one listens to me
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