5% return doesnt necessarily have squat to do with day trading. They very likely mean a 401(k). There are several foreign securities that pay between 11%-15% annually, too.
For some one putting themselves forth as keen on numbers- the math here is pretty flawed.
About 72% of what is paid into social security goes towards your retirement. About 10% goes to survivors benefits- an amount that is paid to spouses and children who’s significant other paid into social security and died before being able to collect, and left their loved ones in need of financial support. Less than 1% goes towards administrative costs and the rest goes to disability and other programs. There IS interest accrued on social security but it’s fed back in to the system to offset the fact that social security pays out more than it takes in and has some losing investments as well. That’s why it’s called “social security tax”- the money taken exclusively for your benefit but for the overall benefit, the same as the money taken for things like roads and infrastructure doesn’t all go back to you directly.
About 72% of what is paid into social security goes towards your retirement. About 10% goes to survivors benefits- an amount that is paid to spouses and children who’s significant other paid into social security and died before being able to collect, and left their loved ones in need of financial support. Less than 1% goes towards administrative costs and the rest goes to disability and other programs. There IS interest accrued on social security but it’s fed back in to the system to offset the fact that social security pays out more than it takes in and has some losing investments as well. That’s why it’s called “social security tax”- the money taken exclusively for your benefit but for the overall benefit, the same as the money taken for things like roads and infrastructure doesn’t all go back to you directly.