It’s Time To Create Your Own Social Security
Know anyone planning on the Social Security Administration (SSA) supplementing their income as they journey into the 6th decade of life? Tell them they need to start making other plans.
The Federal Reserve remains bent on destroying the dollar which will ultimately sink Social Security. And Congress continues stealing the money as fast as it comes in. Lock box? Sorry, there never was one. It’s all been spent.
Sorry to break it to you like this. But we are nothing here at Prism Solutions if not hard-nosed realists. You can hope all you like for our nation’s politicians to do the right thing, but as we never tire of repeating, hope is not a strategy.
Let’s begin today’s exercise by examining some salient, if not always pleasant, facts, starting with a little history. Many Americans today decry that the United States is rapidly becoming a socialist nation. That is not quite accurate since socialist policies and laws have been passed and upheld by our nation’s elected leaders for a very long time now.
One of the earliest examples of the socialist trend in America appeared on August 14, 1935 when President Franklin Roosevelt signed the Social Security Act into law, thereby mandating that Americans voluntarily support the coerced redistribution of private property in abject violation of the Constitution, which sadly appears more and more to perform for Americans what the royal family does for the British in that both are revered, loved yet ignored.
Although initially instituted as a Constitutional Republic underpinned by democratic principles (and NOT a Democracy), a more accurate description of what we’re seeing in America’s modern form of government is a fascist oligarchy – the incestuous (and today, virtually indistinguishable) merger of corporation and state where the few control the many. We just wanted to clear that up in the interest of accuracy. Let’s continue.
Today you can drive down Security Boulevard (we kid you not) in Washington. D.C., and you will see block after block of SSA buildings, stretching back to the horizon as far as the eye can see. It’s the largest wealth redistribution factory on the planet. Karl Marx would swoon.
Under the Internal Revenue Code (Title 26 of the U.S. Code, which covers the collection of Social Security taxes under subtitle C), if you or your employer, as that term is defined in this title, fail to pay your fair share of wealth redistribution (employment tax), scary enforcers with guns can empty your bank account, attach your investments and seize your home or business, all in the name of benevolent central governance to be given away to others (free!) through what has become the largest forced wealth redistribution scheme in all of world history.
Enlightened individuals everywhere agree that society has a moral and ethical duty to care for those unfortunates who, through no fault of their own, are unable to provide for themselves, whatever their age. In times past, this role was filled quite adequately by family, friends, churches, volunteer and charitable organizations. But holding a gun to Peter’s head to make sure that Paul’s family is provided for is probably not what America’s Founders had in mind. Regardless, that’s the way we do it in America today.
Americans pay a 7.65% combined Social Security and Medicare tax on taxable income to the IRS which forwards the expropriated funds to the Treasury Department which then acts as a giant credit card against which Congress can borrow and spend until the system implodes on itself.
And implode one day it will since Social Security is – and there is no way we can put this politely even though young children and church ladies may be reading – a pyramid scheme as new workers entering at the base of the pyramid pay off retired workers who emerge from the top and start collecting.
Request an Earnings Benefit Statement from your local SSA office and they’ll be happy to send you one. It shows the total amount of dollars you have paid into Social Security thus far, plus the amount you expect to receive each month when you file for benefits one day. Now here’s the fun part.
Divide the total that you’ve already paid in by the projected monthly benefit and you’ll come up with the number of months the ‘system’ will need to keep paying you until you’ve broken even. For many people, it’s less than 5 years, and for just about everyone it’s less than 10 years.
For example, let’s say you earned an average of $50,000 per year over 40 working years, for total earnings of $2,000,000 against which you paid 7.65% in employment taxes, or $153,000. SSA promises to pay you $2,000 each month when you retire, therefore you will break even in 76.5 months after you start collecting, which is about 6.4 years, not accounting of course for the decline in the value of the dollar (inflation) during those 40 working years.
It’s a delicate point for real Americans to keep in mind, however, even though you may be an officially registered, card-carrying member with your very own 9-digit personal identifier (SSN), you may not actually be supporting the socialist agenda! Not yet, anyway.
That’s because the early phase of collecting benefits consists of receiving the return (via monthly payments) of funds taken from your own pocket over the years. Since you’re simply getting your own money back, you’re not yet in receipt of funds picked from Peter’s pocket.
However, using our example from above, beginning in the 77th month after have received a return of all funds taken from your pocket over the years (again ignoring inflation or devaluation of those funds since they were extracted from your pay), you now leave the realm of Peter and step into the shoes of Paul, the funds you now receive having been expropriated under threat of fines, seizure of property and incarceration from others, perhaps teenagers flipping burgers at minimum wage.
And this is why America’s experiment with coercive socialism (is there any other kind?) will fail. It has to, not just because it fosters dependence, corruption and immorality. But because it fails mathematically. And mathematics never lies, which is why it’s so dependable.
You and any debating society you might care to join could ride in a rocket ship together at light speed all the way to the Andromeda galaxy (cryogenically hibernating for the multi-thousand year journey, of course) and, when you get there, resume your philosophical exercises, never fully agreeing on anything. But even in your vastly distant new location 2 + 2 would still equal 4. Isn’t that wonderful?!
There are few things in the world that we earthlings can depend on, but mathematics is one of them. Which is why tens of millions of Americans who look forward to receiving, Social Security payments when they reach retirement age might want to start making other plans.
The bottom line is that the Social Security System as we know it today cannot last. It has to fail, as do all Ponzi schemes. It’s the ultimate game of monetary musical chairs, and when the music stops millions of Americans are going to be left without a pot, let alone a seat.
In the spirit of ‘create your own economy’, a theme that we repeat endlessly, it is absolutely essential, Dear Reader, that you start making plans while there is still time, to create your own private equivalent of Social Security — your own personal retirement program to take care of you when you are too old to be expected to continue making coerced payments into a doomed scheme to finance the future financial requirements of today’s youngsters.
Good grief, our apologies. But its seems there’s no delicate way we can put this. Let’s face it, coerced wealth redistribution just isn’t something that comes up in polite company. We’ve attended many community power luncheons and it hasn’t been mentioned once!
But it’s certainly time, Dear Reader, that you begin discussing this around the table with your family and loved ones. For the grim fact is that our team of indefatigable researchers sees no alternate ending for the economic tragedy now being played out, of which the failure of Social Security will play a major role.
Social Security has taught millions of people over the past seventy-seven years that the government will take care of you from cradle to grave. But who will take care of the government?
Which is why you absolutely must make plans to generate your own equivalent monthly retirement program. The easiest way to do this would be to build up a large pile of retirement wealth that you can tap into each month as an annuity to provide you with steady cash flow. Our automated investing software can help you with that.
Of course, steady withdrawals would tend to diminish your funds over time, but we can also help you grow your stash faster than withdrawals can deplete it.
But whatever you decide to do, you need to start getting busy. Unfortunately, most Americans still suffer from chronic cranial-rectal inversion with regard to their long range financial planning. If you know someone still stuck in this awkward position, forward them this newsletter!
In closing, and to paraphrase an ancient Chinese proverb, we live in interesting times. For ourselves, Dear Reader, when things really start to get interesting we’d rather be sitting in the audience enjoying the show than stuck backstage after the curtain has already come down.