SOCIAL SECURITY ---THE BIG LIE! AND THE SOLUTION
By A Political Junky
We
are constantly battered with the idea that we must SAVE Social Security. We are
left with the impression that this Evil Scam is some sort of a great social
program, is it? ABSOLUTELY NOT!
Let’s
run some numbers and see. If an 18-old person earning $7.50 per hour was
allowed to put his or her weekly Social Security contribution into a private
mortgage investment that paid 10% interest per year. And if that individual
never got a raise but continued to work at $7.50 for the next 10 years putting only
his weekly contribution into this same fund. And at the end of those 10 years (age
28) they never put one more penny into this fund, but left it to collect the
same 10% interest until age 65. At that time, he or she would have $1,425,480
in the fund. This would provide the individual, should they choose to retire at
this time an annual benefit of $142,548 per year, or $2,741 per week, or
$390.54 per day, 7 DAYS A WEEK. I
certainly would have no trouble getting by on $142,548 per year, how about you?
Also, when this person dies there will
still be $1,425,480 IN THE FUND to leave to his or her children. If this person
gets married and their spouse has also worked for the same amount of time at
the same pay rate also putting their Social Security contributions into the
same fund, at retirement age 65, this couple has in their combined fund $2,850,960 which they could leave to their
children.
Let’s suppose our couple had three children,
and to simplify the math, they were all triplets born when our pair was 47
years old. Let’s also suppose mom and dad died in a car wreck two weeks after
the trio had their 18th birthday. Those children would receive as the
heirs a weekly check of $1,828 each. Gosh, that means they wouldn’t have to
work at all for their whole life. If these same children, then contributed the
same percentage of their weekly inheritance check that their parents did to the
same trust retirement fund. At age 65 after living their whole life not even
having to work at all, they would EACH receive retirement benefits of $48,088
PER DAY!!!
WHY
DO WE WANT TO SAVE THIS CURRENT PONZI SYSTEM when after only one generation everyone in the trust fund system WOULD BE INDEPENDENTLY WEALTHY?
Now
let’s look at the great SOCIAL SECURITY system. This System has consistently
raised contribution rates and consistently cut benefits, and based on their
historical trend we can expect our payments to the Social Security Administration
will continue to go up and the benefits they pay will go down. Why save this PONZI
SCHEME even if they don’t raise rates or cut benefits? What would they get from
Social Security now with the same payments as in the example above? Based on
their own work sheets Social Security would in 2016 pay all retired workers
about $1,295/month, or $15,540/year.
And
the death benefits would be ZERO. Why save this evil program? If anyone, or any
company, in the private sector did such a terrible job of mismanaging their client’s
funds, they will be thrown in jail immediately. Now is the time to get these
incompetent bundlers out of our lives. Let us control our own destiny.
As for the soundness of the two plans, let’s
look at the record. I would invest the contributing funds in real estate
mortgages. I don’t think there is a sounder investment. The government has
always invested in itself, an organization that is trillions of dollars in
debt. If the federal government went to a bank for a loan, they would be turned
down if they were judged by the same standard as the rest of us. They have
continued to invest in failed programs and are further in debt than in any time
in history. It’s just a matter of time until they go bankrupt in fact they are
technically bankrupt now. When the chickens come home to roost, they will not have
any money left to give. Our private plan will still be paying at the rates
listed above and the investors in our fund will own the property they invested
in by default. What do you prefer? The empty promises of proven liars and money
miss managers or the security of a sound real estate investment?
I don’t see any way to disprove the value of
Our Proposed System nor can there be any valid excuses made to protect the
worthless SOCIAL SECURITY SYSTEM. As to the humanitarian benefits of our system,
the money generated by the contributions could be used to make loans to those
who can’t readily get them. For example, if 10 young men pool their funds at
the end of one year they can finance a grocery store building in their own
neighborhood, to serve their own people. The only one to suffer, the banks and
big government, neither of which are doing a very good job, to promote the
general welfare of WE THE PEOPLE at this time. The individual benefit of self-esteem
would be an adequate reward by itself, never mind the fact that after one
generation of this plan there would be no more poverty in any neighborhood
where the workers had jobs that paid as little as $7.50 per hour.
I stand for no political party; I stand
only for The American Dream and that dream has nothing to do with the mere
accumulation of wealth even though our plan provides it. I stand for:
LIFE, LIBERTY and the PURSUIT OF HAPPINESS. THAT IS THE AMERICAN DREAM!
Let
no one tell you otherwise. This country was created to preserve these precepts.
If you don’t like what this country is all about take your communistic welfare
state ideas and leave it to those that value LIBERTY above all things. And you
in your position of power, if you insist on deceiving the masses to work toward
your evil goals and they are foolish enough to follow your empty dreams, go all
of you in peace. May your chains of servitude rest lightly on your shoulders,
be content with the gifts your slave masters give to you and you slave masters
be happy with the lifeblood you can drain from your slaves, but leave me to
live my life as a free man.
THE SOLUTION TO SOCIAL SECURITY
A
gradual transition would be the best way to approach the problem.
1. Any worker over 55 could stay in the
current system from now on if they want to. If they want to start transitioning,
it is their choice.
2. Start slowly with everybody under age
55. Take a certain percentage of their social security contribution like 10%
and put it in their selected financial private fund, such as real estate funds.
3, Every year another 10% would be added
to their contribution. So after 10 years 100% of their contribution goes into
their private fund.
4.
In 10 years they would be
completely transferred from social security to their private fund. And what
they have accumulated during their working years to Social Security prior to
the transfer would be paid out when they turned 65 as it is now.
5. They would have accumulated in their
own fund 10 years of contribution, Plus the interest at 10% per year during the
10 years.
6. If they continue to work past age 65,
all contributions would go into their private fund.
7. After age 65, If they would like to
contribute to their private fund, any amount would be acceptable during any
current year.
8. Anytime after age 65, if they want to withdraw
whatever amount from their private fund, it is their choice. It could be for
medical expenses, for grandkids, or for vacations.
If
we search the Internet in 2016 we will find the average income per household is
$51,900 and the average contributions to social security it Is about 15.3%.
Multiplying these numbers we get $7800 which will be the yearly contribution to
Social Security. If we start the private fund with 10% social security payment
in January of the year, the first year we have $780 +10% interest equals $850
in the fund the first year. The second year we contribute 20% or $1,560 plus
$850 left over from the first year Plus adding 10% we will have $2660 in the
private fund. Continuing this program for 10 years we will have $64,623 in the
private fund.
What
starts to get interesting if we continue funding the private fund in year 11
with 100% of our social security payment of $7,800 plus 10% interest on that
and the $64,623 already in the fund. We
wind up with $79,666 in the fund at the end of year 11. The value of the fund
goes up an average of about $18,000 each year, but it increases $2000+ each
year so that at the end of year 15 we have $156,461 in the person’s private fund.
We
have now shown how to solve the Social Security problem. It will take 10 years
for the total transition. However, those 55 or older would be paid their normal
Social Security depending on their contributions for the rest of their lives.
Or, if they decided to start contributing to their private fund at 55 or even
after, they would have money available for any purpose.
