Skip to main content

View Diary: Either Leave Social Insurance Alone Or Pay Us Back Our $ 1 Trillion. (184 comments)

Comment Preferences

  •  Give me a lump sum refund, with interest (3+ / 0-)
    Recommended by:
    Into The Woods, StratCat, JG in MD

    NO!. You need to calculate the Net Present Value of the money you put in, and add that up, compounded. An Excel spreadsheet can do this easily, if you have the $dollars you are credited with year after year.

    This is what insurance companies do. it's not only the compounding of the original amount, but what the original amount, even without interest, would be worth today. THEN compound the interest. 1980 dollars are not the same as 2011 dollars.

    Hint:  It's a much bigger number than you think...

    Without geometry, life is pointless. And blues harmonica players suck.

    by blindcynic on Sat Apr 16, 2011 at 05:42:06 PM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site