A retiree says he’d have millions if he invested his Social Security in the S&P 500 — here’s what he’s missing Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
Sometimes things are good in theory, but not so much in practice
And when it comes to theorycrafting your retirement, knowing what works, and if banking on Social Security is enough, can make or break your golden years. Top Picks Imagine Jennifer, whose father, Mason, says that he would have been better off if, instead of having to pay into Social Security, he had invested that money himself. Mason took the figures for his lifetime earnings and contributions, using the earnings history available on his my Social Security account, and then calculated what he would have earned if that money had instead been invested in the S&P 500.
He found that the total would be in the millions, and that the monthly drawdown amount he could take would be many times what he receives each month in Social Security benefits. But a simple calculation like this doesn’t capture the full scope of a life. Here are a few points you to consider before going all in on the S&P.