If you get more than $108, that is inflation,not gain. To get inflation out of equation, one way is to use current value as basis. If you use inflated value to calculate return, then you need inflate the input as well.
Did SS redistribute money from high income to low income, yes. That is why you break even 6 year after retire and gain 12 year after retire.
Is it a good investment, in my humble opinion, it is not. Especially you effectively pay higher tax rate if you buy 40 credits.
Think about this way, if you invest $7000 now,with 5~10% return, how much you get after 30 year compounding.
There is no right or wrong, just different perspective of different ppl. Be cool, we are discussing, you present your view and I present my view. No need raise voice! (-:
BTW, I am not encouraging, neither discouraging ppl investing in SS Different ppl got different situation. It is just my perspective.
