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Sunday, January 16, 2005

More on Social In-Security

I see that Kevin Drum has taken the same quote from Paul O'Neill had carried it forward, rather than looking back, as I did.

The numbers become even worse, since he assumes that contributions are stretched over 45 years, which would make us poor faculty work even further into our dotage. For example our new Secretary of State designate did not get her final degree until she was 27, meaning that, under other circumstances, she would need to work until she was 72 to nest-egg that million. And in that circumstance, I doubt that she would be atypical.

His basis is also the 12.4% which works out at $6,000 a year, while I was doing the $9,600 to get me, and the good Dr. Rice, retired at a more enjoyable age.

In either case, the numbers are just unreal. But we can anticipate that it will all be part of the big push to buy all that stock - yes as Kevin points out to get to the funding required would have the retirees own the entire stock portfolio of all public companies. Unless of course the price rose dramatically because the retirees had to buy it, in which case those currently holding it could get very rich - while the return on investment would get reduced.

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