Retire on 800% of Your Last Year's Salary

I can’t tell you how many kids I’ve talked to who don’t believe Social Security or Medicare will be there for them when they retire. Most are scrambling to get a 401(k) to replace what little they were scheduled to get under the financially imploding Social Security system. Under present rules an average household would get a $1,122 a month retirement check. Annually that means they would retire at $13,464 a year or 34% of their last annual salary of $40,000.

Some unions including auto worker, teachers, and government workers have significantly improved on that percentage. Some have even closed in on retiring on 100% of their last annual salary.

Now if I were to tell you that there is a way to change our retirement system to allow you to retire at 800% of your last salary, you probably would not believe me- but what if I could mathematically prove it to you. No tricks, no sleight of hand no distorted statistics , just pure mathematical fact. Can you believe facts or do you have to swallow the facts our biased communication channels feed you?

Then if I told you it wouldn’t cost you a dime more than what you suffer financially today. I am sure you would think I have been smoking funny little cigarettes. But stay with me just a little longer.

Under the Rise Up America plan the $6,000 annual payroll tax withholding of the average householder earning $40,000 per year pays is invested in the American economy in the form of indexed stock funds and that 40-year investment of $240,000 grows through compounding into a $3.2 million nest egg just using historical rates of return on the S&P 500 stock fund index.

That nest egg performs two functions for the taxpayer. First is that of generating a monthly check and the second is creating an estate to pass to his or her heirs. The $3.2 million nest egg if left in stocks would generate an average monthly retirement check of $27,000 ($3.2 million x 10% / 12 months). Should the taxpayer decide at retirement to move out of stocks and invest in a savings account at, say 6%, then the monthly check would still be a whopping $16,000 per month.

Now let’s see, getting $320,000 a year for a $40,000 a-year worker translates to retiring at 8 times his last salary or a whopping 800% of their last annual salary. Since that $320,000 is just income off the nest egg, the taxpayer can expect to get that amount until he dies and will the $3.2 million to his heirs.

Now dear reader you can become an agent for change or just another victim of inertia. If you fashion yourself as the former go to our Rise Up America website, learn how we can change America for the better and contribute to our charitable organization that will be trying to get politicians to enact a personal account legislation that will change the economic lives of Americans for the better.