Hugh Hewitt asks in today's blog why there are not more Pro-Social Security Personal Account blogs (click header above). So here's mine. As frequent readers know, my idea is to allow individuals to invest their personal account money in pre-paying their mortgage. To this end, I've have run a simplified series of calculations to get an order of magnitude estimate of the consequences (This is known in the trade as a Scientific Wild Assed Guess - SWAG).
Assume a $150,000 principal amount, 4% APR, one yearly payment of $8674 (about $700 / month). After 30 years you own the house plus $28.88 cash!
Now add to your $8674 annual payment a $1200 pre-payment ($100 /month). At the end of 23 years you own the house and have $1,406.01. After 30 years you'd own the house and have $67,273.05. Either way, you are much better off.
And, you live in your Social Security Personal Account, getting to watch it carefully every, single day!
See, the Democrats are right - Early Money Is Like Yeast (EMILY).