No. of Recommendations: 1
First, that's a rather hopeful expectation. If you're investing in CDs or other shorter term (say 5 years) fixed rate investments, 6% is a bit optimistic, isn't it? And if you're thinking of investing in the stock market, well, a lot of people have bad years when they lose significant portions of their principle.Depends on what you pick.
https://seekingalpha.com/article/4502739-average-s...10% average annual return, not adjusting for inflation, give or take.
https://www.macrotrends.net/2324/sp-500-historical...Just an S&P index fund would have gone from 2379 in 2001 to 4450 now; that's an average of ~2.8% compound annual growth per year, which is in the low range of my model. Note that in 2001 you'd have been buying high.
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and that still matches what I would get if I went with Social Security. On only HALF the investment.
Which brings me to another point: as you know, social security is more of an "insurance" plan to keep you from eating dog food, or nothing, or from living on the street when you're 70. Social security is not meant to replace your income or enable you to travel the world when you retire, right?Of course. Unfortunately, it's sold as retirement income.
Also, if you have been maxing out your contributions each year for more than 20 years and plan to continue to do so as you suggest, then your $24,000/year benefits guesstimate is too low. You don't disclose your earnings (nor would I expect you to) but today the maximum benefit is $4,194 per month (about twice what you're guessing), assuming you delay claiming benefits until you are 70, again as you suggested....which would be matched pretty closely by my 3% estimate if I'd been allowed to invest my entire SS contributions over that time.
