Re: Help me battle my teacher\'s indoctrination
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He also states that gives him a benefit of $7,789 a month.
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that's if SS were privatized, basically? how much he get from SS?
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sorry, I misread what he said. He claims that he would only get $1,985 a month in SS benefits, however thats an anomaly caused by his misuse of "nominal dollars" for the future, but inflated dollars in the past. If you use the SS full projection estimator the monthly benefit assuming his pay grows at 3 and inflation is 2.5%, then his monthly SS benefit is about 4500 single, 9000 with spouse.
That will lower his ROR closer to the risk free rate of return. Note though that he had many years of earning at the maximum tax level. That hurts your ROR, since, as discussed earlier, there is a wealth transfer effect built into the benefit formula...high wage earners are subsidizing the "ROR" of lower wage earners.
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