SSA Retrospective

Remember this old post?

However, all I really need...is my paystub! Behold:

(acsound2011: paystub truncated for length)

[above: my paystub, doctored for my protection. highlighted is my FICA amount per pay period, and my YTD FICA as of 11/16/04.]

The YTD FICA is what I’ll use for my calculations. That would be $1373.45 as of November 16, 2004. [that, BTW, represents 22 pay periods in 11 months.]

Okay:

I’m going to compare SSA’s 1% return to the “in excess of 3%” return the evil PRIVATIZATION could provide. [Let’s say...3.2%.]

1% of $1373.45 = 13.7345 ~ $13.74

3.2% of $1373.45 = 43.9504 ~ $43.95

Now, I’ll find out how much compound interest will accrue between my two principal amounts [FICA & PRVT] over a period of 20 years:

FICA

13.74 x 20(1.01)

13.74 x 20.20 = 277.548 ~ $277.55

PRVT

43.95 x 20(1.032)

43.95 x 20.64 = 907.128 ~ $907.13

If my arithmetic serves me right, $277.55 is less than $907.13; or another way, $907.13 is greater than $277.55.

I’m going to calculate the difference betwixt the two:

$907.13 - $277.55 = $629.58

It appears that Newt Gingrich is trying to plug it again. Unfortunately, due to the current economic crisis that started in 2007-2008 (during the Bush Administration), no one's going to give this smart and overdue idea a chance.

If I wanted to be really cynical and snarky, I'd argue that I'm just cutting out the taxpayer-funded middlemen (politicians) and giving my money directly to our "corporate rulers". At least I have the option to tell corporations "no".

Look at my figures again. If my math is wrong, please let me know. That $629.58 difference is a nice chunk of change.

Just sayin'....

~ acsound