Because Social Security is getting cut down, you choose to put your money in an IRA…  Since doing percents are easy with amounts starting with a one and ending in zeros, let us assume you choose to put \$100,000 in an IRA for 20 years…. The Wall Street firm will charge you 2%. You think, \$100,000?  2%, ok … \$2,000 over 20 years that’s nothing.. I’ll still have 98% plus interest over 20 years…

You think?  This is Wall \$treet we’re talking about……

So take this interest compounding calculator. … Seriously, you need to do this.  Right click it into a new tab  so your computer doesn’t have to download flipping back and forth….

Add \$100,000 as principle.   No new additions on the first round.  Time Frame: 20 years. For the interest rate put in negative 2. Since you are going to be receiving only 98% of your earnings on a yearly basis, a negative 2 works better than having to do the extra step latter and subtracting two totals.

Hit total…  At 2% compounded off that \$100,000 you originally placed,… after commissions all you will have left is \$66,760… Wall \$treet takes 1/3 of what you earn…..

Not convinced?  Let’s go a different way.  Let’s say you will average 7% increases with a 2% commission… We’ll do it in two steps.  We will use the calculator to figure out what we would have earned at 7%, and again, what we would have earned at 5%.  We will subtract the two to see how much Wall \$treet is taking out from your future…

At 7% increases we would have earned \$386,968 over 20 years with no additions after the initial deposit.  At 5% increases our total maxes out at \$265,329.   That 2% costs us…..\$121,639 dollars…. The same 1/3  as above….

The argument can be made that since we agreed to it in the beginning and never got it, the commissions really doesn’t cost us anything.  But if we change the wording so we say that it costs us \$121,599 in “potential earnings” that clears that hurdle and if probably a more truthful line..  But there is no question …. these calculations show us how much Wall \$treet intends to make when our retirements go their way instead of coming through Social Security….

We now remember why Franklin D. Roosevelt went with Social Security in the first place.  Those who saved across all their lives, can not afford to live after they stopped working.