Government workers in Galveston Texas were able to opt out of Social Security in the early 1980's. The results speak for themselves.
Who doesn't want reform?
Posted by Chris Schrimpf
Comments
Why weren't Galveston workers too stupid to manage their money? Is it do to the innate superior wisdom of government employees?
Posted by Adam Cahn on August 28th 10:24:11 PM
The Galveston model hardly approaches the level of monthly retirement benefits 40 years of investments in a fund that tracks the S&P 500. Assuming we privatize Social Security and Medicare and divert the 15.3% payroll tax to a PRA
a weekly compounding at the 40-year rate the S&P has averaged since 1871 of 10%, the median household in America would generate over a $4.4 Million nest egg. If it continued to earn 10%, its return in the 41st year would be $440,000 or a rate of $36,666 per month. Even if the taxpayer cashed out of the stock market and converted it to an interest earning cash saving account would generate $22,000 per month at 6%.
Nore than enough to retire in luxury and afford the best medical and long-term care available.
