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Author: FoolishBull One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75802  
Subject: Re: social security Date: 4/26/1998 2:43 PM
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[[Hi..Im 18 and Im going to start investing for my retirement...Im curious tho..seeing Im paying a lot of social sec. tax, and I know I won't see a penny in about 2040 when I come around to retirement..but is it possible to divert the money I pay into the government and put it into some type of retirement account? Any type..as long as I have some money to look forward to...]]

Superr,

Regarding SS, I don't have anything to add except TMF2Aruba started a discussion in the "fools and their money" message board.  See http://boards.fool.com/Message.asp?id=1040007000287001&sort=id

I think it is great that you are getting Foolish early since the next 10 to 20 years can make a big difference in your bottom line when you retire.

Say you open a self-directed IRA account and invest 2000 at the end of each year until retirement (assume 65).  Here's how your bottom line could change depending on the age you start investing and your rate of return.

Starting
age              11%            15%
------------------------------------
18           $2,435,495     $9,486,965
28             $845,965     $2,334,995
38             $286,147       $567,138
48              $89,002       $130,150

You can see how important it is to start early.  Also, many of the BTD strategies suggest that it's possible to beat the 15% per year.

Good luck.
F.Bull
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