Social Security Tax

Check this math out and see if you agree. The SS tax is 6.2% each so a worker earning $15,000 a year contributes with the employer a total of $1860. And taking 20% of that they would get to invest $372 a year. But they would have to pay a minimum of $50 at Schwab to maintain an account with that low a balance (under $10,000). BTW, it will only take them 20 years to get to the minimum balance to get rid of the charge! So they would actually lose over 13% before they ever got a dime back from investing. I am unsure of who will take a $372 contribution without charging a fee except the US Government. I know I won’t! :-))

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