I challenge anyone in Finance to disprove this simple financial solution to fix Social Security and poverty, and even pay down the national debt.
In these simple numbers both the US Government wins as well as each U.S. Citizen (Not to mention the amount of money invested in the Stock Market every year). The numbers are derived from simply investing 10,000 per person when each person is born every year in the U.S. The money is invested for 65 years and cashed out at retirement.
Basically every person born in the U.S. would have 10,000 invested in the stock market for them by the U.S. Government at the time of their birth.
Upon reaching the age of 65 the Government would take a flat tax of 25% and the remaining 75% would go to the retiree.
The following simple numbers are from searching Google:
The average U.S. Citizen has less than 148,900 by age 65 (just one example) this is only people with holdings and doesn’t even count the poorest who don’t have any holdings for retirement. There are many charts on the poorest that have no money for retirement (This is not covered here, but makes this scenario even better).
US Government spends per year:
$3.5 trillion in 2013
Births in the US per year:
3,999,386 rounded up to 4,000,000 births per year
If the US Government invested 10,000 dollars for each person at birth it would cost the Government:
40,000,000,000 (40 billion dollars)
10,000 invested over 65 years (retirement age) would be:
$15,818,724.91 if earned 12% (Best case scenario) ……Estimate
$441,449.72 if earned 6% (worst case scenario) ……Estimate
The US Government could still take Social Security Tax from paychecks and then even take a flat tax of 25% from earnings at retirement from every citizen:
Best case scenario 25% of $15,818,724.91 at retirement would be:
3,954,681.22 for the US Government in returns per average citizen (Every Citizen)
11,864,043.69 for each retiree from the original 10,000 invested at birth
Worst case scenario 25% of $441,449.72 at retirement would be:
110,362.43 for the US Government in returns per average citizen (Every Citizen)
331,087.29 for each retiree from the original 10,000 invested at birth
This is for every U.S. Citizen born in the United States!
Imagine something between these two examples for each and every U.S. Citizen:
- $15,818,724.91 if earned 12% (Best case scenario) ……Estimate
- $441,449.72 if earned 6% (worst case scenario) ……Estimate