‘The numbers don’t lie’: If I had invested my Social Security in the S&P 500 I’d have $4 million. Is the system broken?

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Dear Quentin,

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If all my contributions, along with my employer’s contributions, had been invested in the S&P 500, my balance would be more than $4 million. I could take a very sustainable withdrawal rate of approximately $30,000 a month, assuming my long-term returns were 7%-8%.

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svg{fill:var(–interactive-text-color);}}.css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link.css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link svg{fill:var(–color-interactiveLink010, interactiveLink010);}.css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link:hover{-webkit-text-decoration:none;text-decoration:none;color:var(–color-interactiveLink020, interactiveLink020);border-bottom:1px solid;border-bottom-color:var(–color-interactiveLink020, interactiveLink020);}@media (prefers-color-scheme: dark){.page_supports_browser_dark_mode .css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link:hover{color:var(–interactive-text-color);border-bottom-color:var(–interactive-text-color);}.page_supports_browser_dark_mode .css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link:hover.page_supports_browser_dark_mode .css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link:hover svg{fill:var(–interactive-text-color);}}.css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link:hover.css-i0lbhy-OverridedLink.css-i0lbhy-OverridedLink:any-link:hover svg{fill:var(–color-interactiveLink020, interactiveLink020);}SPX, while my employer contributions went to the government, I’d have close to $3.7 million in the account at the end of this year, based on historical averages. I do better than many citizens because I’ve contributed at the highest level.