Social Insecurity

Just about everything you have been told about Social Security is an obfuscation. That is a big word for convoluted truth or lie.

In a recently published obscure government document by the presidential Social Security commission there are two pages that expose the truth. Neither Democrats nor Republicans want you to read this. Shining the light of truth on the weirdness of politicians seldom makes them happy; however, you owe to yourself to know the truth.

When they take out from your paycheck for FICA - that's the SS deduction - the money is sent to the Social Security Trust Fund. Your money is held in the fund for some future date when it is returned to you upon retirement. During that time it is gaining interest at about 2%. Pretty shabby, but better than nothing. This is all well and good as long as the money is really there, but it isn't. What?

Now follow me with this beautiful bit of political sleight of hand. The money is invested in U.S. Treasury bills. Good, sound and safe as it gets. Right? Wait. Let's understand what has happened here. The Federal government has issued pieces of paper called Treasury bills which they have created out of thin air and replaced your real money. The Fed has borrowed your money in the "trust fund" and given you a promissory note in the form of a Treasury Bill. That money has now been transferred to the General Fund where our honest politicians spend it on whatever piece of pork they want. That does include necessities such the Army, Navy and Marines, welfare recipients and government employees like Senators and Congressmen.

Let's jump ahead to your retirement date maybe 20 or 30 years from now. You and thousands like you have been putting in billions for all these years and Uncle has been printing T-Bills. Now you want your money back. Shucks, anyone knows you just cash in the T-Bills. Where does the money come from for the T-bill? From the government that created it. That means those funds must come back out of the General Fund, which is composed of taxes. But they already spent it. It's gone. Something is wrong here.

The Fed took your money and put a piece of paper in its place as a promise to pay when the time came, but they did not back it up with anything except a promise to pay. All returns to SS retirees comes back out of payments by others now paying into SS. But what if there is less money being deducted for FICA at that time? It is called a shortfall. What the Fed has created is a giant Ponzie scheme where the first people who invested in it get paid, but those who came in later get less, little or maybe nothing.

As long as there is a Federal surplus or a balanced budget you are OK, but when that disappears it means taxes on everyone must be raised to pay for the SS benefits. Smoke and mirrors.

Politicians don't want you to be able to invest any of your own money because it means they will have less to spend and could care less what happens 10, 20 or 30 years from now as they will be long gone.

That is the truth about your Social Security "Trust Fund". There isn't any and never has been.

Perhaps we were asking the wrong questions this past election.

Our Senators/Congressmen do not pay into Social Security, and therefore they do not collect from it. Social Security benefits were not suitable for them.

They felt they should have a special plan. Many years ago they voted in their benefit plan. In more recent years, no congressperson has felt the need to change it. After all, it is a great plan. For all practical purposes, their plan works like this:

When they retire, no matter how long they have been in office, they continue to draw their same pay until they die, except that it may be increased from time to time by the cost-of-living adjustments. For example, former Senator Bill Bradley (New Jersey) and his wife may be expected to draw $7,900,000 over an average life span, with Mrs. Bradley drawing $275,000.00 during the last year of her life. Their cost for this excellent plan is zero, nada, zilch.This little perk they voted in for themselves is free to them.

You and I pick up the tab for this plan. Our tax dollars at work! From Social Security, which you and I pay into every payday for our own retirement, with an equal amount paid in by our employer, we can expect to receive an averageof $1,000 per month. We would have to collect our benefits for 68 years and 1month to equal the Bradley's benefits.

Imagine for a moment that you could structure a retirement plan so desirable, that worked so well, that Railroad Employees, Postal Workers,and others who were not in the plan would clamor to be included. This is how good Social Security could be, if only one small change were made.

That change would be to jerk the Golden Fleece Retirement Plan out from under the Congressmen & Senators. Put them into the Social Security plan with the rest of us. Watch how fast they fix it!

If enough people receive this message, maybe a seed will be planted and maybe good changes will evolve.

Our girl Hillary Rodham Clinton now comes under this Congressional Retirement Plan. Sspeaking of the Clinton's, it's common knowledge that in order for her to establish NY State residency, they purchased a $million-plus house in upscale Chappaqua, NY. Makes sense.

Now, they are entitled to Secret Service protection for life. Still makes sense. Here is where it becomes interesting. A residence had to be built in order to house the Secret Service agents. The Clintons now charge the Secret Service rent for the use of said residence and that rent is just about equal to their mortgage payment, meaning that we, the tax payers, are paying the Clinton's mortgage.

And it's all perfectly legal.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

KSTP

Bring me the bleach: Investors seek stability as stocks fall
KSTP
After their years of eye-popping returns, those stocks had become some of the most popular to own among hedge funds, mutual funds and other investors. But just as they bought the stocks together on the way up, investors are now heading for the exits en ...

and more »

Benzinga

Best Technology Mutual Funds of 2019
Benzinga
A mutual fund is a collection of stocks handpicked by industry experts and sold as a type of prepackaged bundle. We've rounded up some of the best technology mutual funds currently available on the market—along with some tips to help you find the next ...

and more »

Economic Times

How your mutual funds played the balancing act during stocks crash
Economic Times
This suggests multicap funds are trying to capture opportunities across the market without going overboard on risk. Using the Sebi-defined cutoffs for market capitalisations and a look at allocations to each marketcap category across funds show mutual ...


USA TODAY

Can I sell a losing stock, deduct the losses and then buy it back?
USA TODAY
Generally, "substantially identical" means buying or selling the exact same stock. However, in the case of mutual funds or ETFs, it can mean buying another fund with virtually identical investments – such as selling one S&P 500 index fund and buying ...


CNBC

Goldman Sachs on 2019: Raise cash, get defensive and look out below if more tariffs happen
CNBC
Most investors (households, mutual funds, pension funds and foreign entities) are too overweight stocks and need to raise cash, Goldman said. "These entities have equity allocations ranking in the 89th percentile vs. the past 30 years," the report said ...
As the stock market and economy are set to skid, Goldman says cash will be kingMarketWatch
GOLDMAN: Cash looks competitive relative to stocks in 2019Yahoo Finance

all 106 news articles »

USA TODAY

As stocks skid, worries mount for 401(k) investors who can't 'stand the pain'
USA TODAY
Money starts to move out of stocks: While investors haven't exited the stock market in a stampede, more money has come out of U.S. stock mutual funds and exchange traded funds than has flowed in, Investment Company Institute data show. In the three ...

and more »

Morningstar Reports US Mutual Fund and ETF Asset Flows for October 2018
Markets Insider
20, 2018 /PRNewswire/ -- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment research, today reported estimated U.S. mutual fund and exchange-traded fund (ETF) asset flows for October 2018. In October, investors placed $20.4 ...

and more »

These people have been buying up stocks faster than anyone since 1989
MarketWatch
One of the easiest and smartest ways to get started is with a mutual fund that contains a basket of investments instead of a single stock. If you have a workplace retirement plan, mutual funds are going to be the main item offered on the investment menu.


Investor's Business Daily

When Growth Stocks Do This, These Silver Linings Appear
Investor's Business Daily
Does this behavior on Wall Street reflect a hunger by fund managers to grab shares at a discount vs. recent highs? Quite possibly. Here's one piece of corroborating evidence to justify this conclusion: At the end of 2016, a total 364 mutual funds and ...


After Sour October, Fund Managers Gird For More Volatility, Trim Stocks
Investor's Business Daily
Ouch! That summarizes the shrinking performance by the stock market and U.S. diversified stock mutual funds in October. The stock market forecast? Fearing volatility ahead, money managers and strategists are flashing yellow warning signs about the ...

Google News

Stock Options Trading Strategies - Lean

Professional stock options traders use the term lean to refer... Read More

Chart Reading

As an investor you will want to check out any... Read More

Index Fund Trading Using Technical Analysis and Swing Trading Strategies

Index Fund Trading can be one of the most profitable...or... Read More

What To Buy?

Now that you have some money burning a hole in... Read More

Investing in the Stock Market - When To!

Is really not as important as to how you invest... Read More

Traders, Defend Against the Dreaded Death Spiral.

It has often been said that there is only two... Read More

10 Tips For Creating Wealth From the Stock Market

1. Do not spread your money too thin.My friend has... Read More

Dont Fight The Fed

One of the great truisms of Wall Street is "Don't... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

How To Pick A Mutual Fund

Mutual funds by definition are a mixed bag of stocks,... Read More

Investment Discipline

One of the great "secrets" of successful people is discipline... Read More

Big Buildings Can Mean Big Economic Disaster

AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More

Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity

Most stock traders know that momentum trading can be a... Read More

How Eating Bitumen Made Me a Better Trader

Trading is a fascinating activity.There are so many layers to... Read More

Stops Make Money

During the day I watch CNBC-TV, the stock market channel.... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

Investing in Dividend Paying Stocks

I was recently interviewed for a press release through a... Read More

Price to Earnings Ratio - P/E

After finding the price of a particular stock, usually the... Read More

Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions;... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

No Load Mutual Funds or Exchange Traded Funds (ETFs)?

If you are fed up with early redemption charges and... Read More

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More

The Exclusive Club of Large Caps

Picture one of those clubs where only the real heavyweights... Read More

Staying Sane While Wall Street Crashes

Everybody is riding the Wall Street Roller coaster. Even if... Read More

The Holy Grail (of Investment)

Every year I go to the Money Show in Orlando,... Read More