Help me battle my teacher's indoctrination

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In the heritage example you arent taking into account post-retirement cost of living adjusments, which increase the payouts.

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so 15 years retirement
paid in max min
290k 61k
15 year payout max min
376k 154k

so 10 years retirement
paid in max min
290k 61k
10 year payout max min
250k 103k

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lets take the max contrib, 10 year retirement. guy pays in 290k. now some of those dollars are 1960 dollars, some are 1980 dollars, etc. right or wrong? i'm not sure.

now take the payout of 250k. those are all in 2008 dollars. I'm pretty sure of that.

so my question is, can we convert the contributed to constant dollars? hard I know cause they're from all different years. now the payout dollars are already in constant 2008 dollars, which would be easy to convert to the standard constant 1982 dollars or whataever the benchmark is.

so it seems to me that
a) contrib 290k already in constant dollars in which case if they're in constant 2008 dollars then it's a simple 290:250 ratio in which case obviously you're getting a negative rate of return cause you're getting less back than you put in. also note if they are in constant dollars of any other (earlier) year, they will be worth more in constant 2008 dollars, so this is lowest possible.


b) contrib 290k is simple the sum of the dollars paid in at the time, which, when converted to constant 2008 dollars, would make it way bigger, at least 500k, which means the ratio would be 500:250, which means that in constant dollars for every dollar you put in you will get 50 cents back.

see where I'm going with this?

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In the heritage example you arent taking into account post-retirement cost of living adjusments, which increase the payouts.

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yes but if 2088 monthly in 2008 is 3000 monthly in 2015, isn't that just another way of saying that in 2015 you get 2088 "2008" dollars?

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You know what? I will paypal the OP $10 if he takes all this and reads it at his teacher, and videotapes the whole thing and puts it on youtube. Seriously. Ten bucks. And it could be any of the exceedingly long and detailed, broken down posts about social security, complete with numbers and everything. Ten bucks... Just something to consider.

If the teacher cuts him off and points out that it's not an Econ class, he only gets $5.

You'd have to include some footage proving it was the school you go to, but I'm not asking for much. Just a little proof.