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Old 11-16-2012, 03:53 PM   #15
Decent college freshman
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Join Date: Jun 2007
Posts: 2,776
Default Re: Invest in 401K or pass it up and keep entire pay?

Originally Posted by kNicKz
social security is just a free loan to the government that they don't even have to pay back. I could take 6% out of every paycheck, put it in a separate bank account, and watch it rise/ collect interest. Don't need the government's paws in it

Social security isn't supposed to make you better off if you are already on one of the higher rungs of society.

If you annually earn 100K, you obviously could take 6K and get a decent return on it. Social Security takes your 6K, earns a modest but safe return and then gives you back a present value of 5K or so when you retire.

That extra 1K plus interest goes to someone else who made 30K annually their entire life. It's a social insurance program just like unemployment.
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