If the annual tax paid had been invested in the S&P 500, the total final value would be $1,586,293.


But you can't just "invest it" all. You also have to calculate the cost of the disability insurance each year from 1963 until now, let's say the first 5 years just for you, then the next 5 you and your wife, then the next 30 for you and your children, and then the remainder for you and your wife. You would only be able to invest the amount you would have paid each year MINUS the cost of all that disability insurance each year.

I happen to have my Social Security statement here and mine says:

Social Security taxes
You paid: $187,135
Employer(s): $194,680

Medicare taxes
You paid: $155,589
Employer(s): $155,589

Amazing how my Medicare taxes are almost as high as my Social Security taxes in total. And this doesn't include any of the NIIT Medicare taxes.

Retirement Investing FAQ

---

Contact Shrewd'm
Contact the developer of these message boards.