Discussion in 'Free Speech Alley' started by Winston1, Jan 15, 2013.
dont leave home without mine
Thought this was interesting.
The math is wrong in the above.
Can you explain how to correct the math in that, or fix it entirely? You are some sort of tax and math wizard.
You could take the money going into SS and put it a jar and come out better than waiting on the govt. An accountant told me that.
I wouldn't retain that accountant's services if I were you
If you were given a choice. Would you stick with SS or invest it in your own Ira. ?
an ira and mason jars are two different things.....
to answer your question, I'll take the IRA everytime. any one with half a brain would agree.
Sure. First the basic inputs are wrong. FICA tax for employee is 6.2% and it is the same for the employer. So on $30,000 the annual tax would be $3,720. or 310 a month not $375, but that is the most basic error.
The 180,000 is wrong also. Given the assumptions of the post you would only pay in 148,800 over the 40 year career (310*12*40) .
Now here is where it gets really fucked up. To figure out the future value of an investment with compounding monthly interest and a monthly contribution you use a formula, that I am way too lazy to type out so link here. http://www.patrickschneider.com/blo...an-initial-balance-and-monthly-contributions/
Plug in the givens from Gyver's message and the future value is only 183,000 and some change when you use the correct $310 figure and $221,000 and some change when you use 375. Neither is nowhere close 1.3 million.
i wonder how they got to $1.3M? 180k at 8% over 40yr?
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