The Social Security Ponzi Scheme

As an investor, I've always wondered why Social Security is such a problem. What's so difficult about managing this particular Trust Fund, and why is it so different from other investment accounts that pay out a constant stream of income? The private sector does it routinely with defined benefit pension plans and fixed annuities, so what's the big deal? Is Social Security failing because it hasn't been invested soundly, or is there some other reason?

The most obvious explanation is politics, but we're running out of time for finger pointing, and Social Security is solvable in a surprisingly painless manner. It will require a whole new approach that uses old ideas and institutions in ways that most of us have pretty much given up on. As hopeless as the Bush Administration's Nicotine Patch for Social Security would have been, it pointed in the right direction. Now don't hit DELETE when I refer to "privatization", or when I mention one of my own most hated financial products, the "annuity". Both are needed to permanently fix the Social Security mess, to get it away from people who are neither managers nor investment specialists, and to make the whole system work more economically. The purpose of this article is to get you to think about it... and to elect a hero with the guts to fix it. Unfortunately, Joe DiMaggio has left the building!

Are you surprised that there is no "Social Security Trust Fund"... no investments and no Investment Managers? This is a gigantic Government designed and controlled Ponzi scheme that has worked incredibly well in spite of congressional tinkering and prohibitively high cost. There was always a tax plan for funding the benefits, but never an Investment Plan. And as difficult as it is for me to admit, no sophisticated Investment Plan is really necessary. We just need a new (reduced) contribution plan, one that isn't designed to fund every politically sensitive entitlement that compromises itself down the aisle. We need a simplified benefit structure that supplements privately funded (untaxed) retirement programs. [Healthcare just has to be a separate issue, perhaps an actual (managed) Trust Fund, and certainly something that should not be funded by private citizens until there is meaningful tort reform in this country.] Pshew! Back to the point... We can eliminate all the unnecessary bells and whistles simply by mandating personalized benefit funding. Let the politicians deal with homeland security while the private sector deals with things financial.

After the repeal of the Social Security tax and implementation of mandated Individual Retirement Plan Contributions, the Social Security bureaucracy will retain several important functions: 1) Qualifying private sector companies and licensing them to provide Social Security Retirement Income Annuities (SSRIAs). Thousands of providers will be needed, but only, fixed income experienced, profitable companies need apply. 2) Developing a computerized system for participant/provider matching... inspired randomness is essential. 3) Proactive monitoring of compliance with the minimal rules, installation of fraud detection systems, and investigation of all violations by providers, participants, and retirees, 4) Keeping the plan sacred, simple, and principally unchanged by future legislation. The plan must be kept: simple and profitable for providers; painless and visible to participants; timely and comprehensible to retirees.

The SSRIA is a new and improved version of the ancient Deferred Fixed Annuity Contract... a boring but guaranteed retirement benefit vehicle, funded by both mandated and voluntary payroll deductions, with a whole bunch of new wrinkles that make it an ideal Social Security replacement program. For example, and unlike existing annuity contracts: 1) Participants will be allocated to "qualified SSRIA providers" so there will be no sales commissions, no business acquisition or retention costs, no advertising expenses, etc. 2) All SSRIA contracts (regardless of provider) will contain the same terms, interest guarantees, retirement benefit choices, and pre-retirement death benefits, thus eliminating any incentives for internal fraud and manipulation of statistics. 3) Qualified providers will establish separate subsidiaries to manage and control SSRIA operations and to assure that only high quality, income securities are used to fund future benefits. 4) All qualified providers will use the same mortality, investment earnings and expense assumptions, and all benefits will be fully guaranteed by the parent corporations.

The SSRIA is a supplemental retirement program, funded by a much smaller, yet flexible, payroll deduction, and it is designed to be the foundation of a retiree's total retirement package... a benefit floor. Participants will choose (annually, for the following year) to deposit from the required 2% up to a maximum 4% of their Pre-Tax Income to their personal SSRIA, a contract that will follow them everywhere, from employer to employer, throughout their working years. Before retirement, a death benefit equal to the full cash value of the contract will be paid to the designated beneficiary. At retirement, participants can elect either a Life Annuity or a Joint & 50% Survivor Annuity. No variable plans of any kind will ever be allowed; there will be no loan privileges, withdrawals, or dividends. Providers are expected to make a reasonable profit, which will ultimately be determined by their operating and investing abilities... hmmm, I smell capitalism.

Employer sponsored benefit programs and individual savings and investments are expected to make up the bulk of private retirement programs. The SSRIA will assure that everyone has something, but individual savings and retirement plans, both company sponsored and personally funded, will be encouraged by new IRS policy. No retirement income, regardless of source will be subject to income taxation! Neither employers nor self-employed persons will be required to make matching contributions of any kind to employee SSRIAs. However, they will be encouraged to use their improved cash flow to increase employment or to reduce prices, perhaps by a new system that will reduce their corporate income tax obligations as a reward for boosting the economy. Similarly, billions of dollars of discretionary spendable income will find its way back into the economy from consumers whose payroll deductions have been slashed deservedly.

Steve Selengut www.sancoservices.com www.valuestockbuylistprogram.com Professional Portfolio Management since 1979 Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

Related Information of Interest:

Puppy Training
Puppies need to go to the bathroom after they play, chew, drink, eat or sleep. Start by putting them on a leash and tethering them to you. That way you can be aware of them when they start sniffing the ground (usually a cue the puppy needs to go potty). Pick them up and carry them outside. When they go potty, tell them "good potty" and give a cookie as a reward. Do not let your puppy off leash until they have finished going so they get into the habit of going potty, then playing. Many puppies will want to go outside just to play if you let them off leash first.

What if my puppy has an accident?
He will. Do not punish your puppy though. If you catch your puppy in the act then clap your hands or pick them up - this will make your puppy stop going. Get him outside FAST and let him finish up out there. Reward him for going outside. Clean up the mess with petzorb which will remove the odor completely.
Do NOT rub their nose in it, swat them with a newspaper, or isolate your puppy. It will only teach them to not go in front of you.

If your puppy is going frequently in the house you are probably not supervising them enough. Watch and learn their cues. If you feel you are watching and your puppy isn't getting it you can always have them checked for a Urinary tract infection.

If your puppy piddles when you greet them, this could be submissive urination. This would be a problem that is usually cured by ignoring the behavior and letting your puppy calm down before touching them when you first see them.

This article not only applies to puppies, but it is how you should train a dog of any age. If you can't supervise your dog, please put them in a crate to help curb accidents. Remember, dogs go where they go most!

This can be a trying time, so have patience and you will get through it.

About the Author

Amy Dunphy, CPDT is the owner and operator of the www.dogtrainersearch.comDog Trainer Search

Meet Kate Bosworth: Superman Returns
There are few more iconic characters in American movie history as Lois Lane, Clark Kent’s sidekick at the Daily Planet, and Superman’s romantic interest. But 23 year old Kate Bosworth’s performance has earned her a number of excellent reviews in the role in the latest film in the Superman series – ‘Superman Returns’.

Bosworth admits that she was unsure if any actor could pull of a convincing Superman/Clark Kent combination – she remembers the original film with great excitement. However, she is full of praise for Brandon Routh, the unknown actor who plays the title role. She realized how good Routh was going to be as early as an early screen test, before she had got the role, when she discovered she “had become totally lost in just reading with him, in a white, bare, sparse room with the tri-pod video camera and a couple of people sitting around and watching and that's when I realized he was going to be tremendous in this film”.

Bosworth modelled her Lois Lane performance on Katharine Hepburn. "I watched a lot of Hepburn to prepare for Lois, particularly ‘The Philadelphia Story’ and ‘Guess Who's Coming to Dinner’. Hepburn is a great model for how I see Lois - strong but fragile."

Bosworth spent her early childhood moving around the US, from Los Angeles to San Francisco, then to Connecticut and to Massachusetts. It was around the time of the move to Massachusetts in 1998 that she heard of an open audition for Robert Redford’s film ‘The Horse Whisperer’. A horse-lover, she went along for the experience, and won the role of the female lead's best friend. After “The Horse Whisperer” Bosworth took a break from acting, returning two years later to resume her career which has culminated with her role in ‘Superman Returns’.

Filmography

Superman Returns (2006)
Bee Season (2005)
Beyond the Sea (2004)
Win a Date with Tad Hamilton! (2004)
Advantage Hart (2003)
Wonderland (2003)
The Rules of Attraction (2002)
Blue Crush (2002)
Remember the Titans (2000)
Young Americans (2000) TV Episode
The Newcomers (2000)
The Horse Whisperer (1998)

Niall is a huge fan of the original Superman film, and is looking forward to the release of Superman Returns. For news and information about the new film visit his site at www.SupermanReturnsNews.com. All rights reserved. Copyright www.SupermanReturnsNews.com.

Who Wrote The Most Famous Love Poem
The Most Famous Love Poem

Love poems have been written for centuries to inspire lovers and create romance. When you give your special someone a love poem, you can express your feelings through eloquent words in a memorable way. Many famous love poems are written by classical poets, such as Lord Byron, Elizabeth Barrett Browning, and Shakespeare. But a famous love poem by a modern poet may appeal to a younger person who likes a less formal tone.

The poet e.e. cummings wrote what is probably the most famous love poem currently. It has been featured in other books and movies, used as inspiration for other writers.

i carry your heart with me
by e. e. cummings

i carry your heart with me (i carry it in
my heart) i am never without it (anywhere
i go you go, my dear; and whatever is done
by only me is your doing, my darling)
i fear
no fate (for you are my fate, my sweet) i want
no world (for beautiful you are my world, my true)
and it's you are whatever a moon has always meant
and whatever a sun will always sing is you

here is the deepest secret nobody knows
(here is the root of the root and the bud of the bud
and the sky of the sky of a tree called life; which grows
higher than soul can hope or mind can hide)
and this is the wonder that's keeping the stars apart

i carry your heart (i carry it in my heart)

The poet e.e. cummings is quite a unique writer in that he used new methods of creating mood and setting the words to paper. He explored the use of white space on the page and made the words’ appearance just as important as their sound when the poem was read aloud.

This poem is a perfect example of his use of parentheses and unusual stanza variation. He found a wonderful way of expressing very abstract ideas with some concrete grammatical forms. Use this poem to express to your loved one just how much they mean to you.

Visit to find out more about famous love poems.

Art Hill is an internet poet who operates an independant poetry publishing company.

Five Reasons Why You Should Drink More Water Everyday
1. Drinking more water everyday will keep your skin looking smooth and supple. Applying expensive creams and lotions to your face is not an effective way to conceal the effects aging has on your skin. The real fountain of youth can be found in a glass of water.

2. Drinking more water everyday will help you cut calories. Most popular beverages are loaded with calories. A can of soda can have as many as 240 calories per serving. Drinking 1 or 2 of these each day is a recipe for gaining weight. Choosing to drink water instead is the calorie free way to quench your thirst.

3. Drinking more water everyday will help you distinguish thirst from hunger. If you allow your body to become dehydrated it will be difficult to discern whether that gnawing feeling in your stomach is a call for food or a call for water. And if you keep eating food when what your body really needs is water, you will gain weight.

4. Drink more water everyday will help your think more clearly. Research has repeatedly shown that staying hydrated is necessary for the human brain, which is 85 percent water, to function at optimal levels. That is why many school systems throughout the country now encourage students to keep a bottle of water at their desks and to drink it throughout the day.

5. Drinking more water everyday will help you feel better. Your body is about 75 percent water and 25 percent solid material. Doesn’t it make sense that you would need to drink water on a daily basis to ensure that your body has all the water it needs to perform at optimal levels. It is a mistake to believe that thirst is the only indicator of a need to drink water. Constipation, achy joints and fatigue are also signals that your body may be dehydrated.

Jacqueline D. Stanley: Author, Speaker, Chief Encouragement Officer at Lettuce Is Not Enough University: The Place to Learn How to Live Well and Lose Weight. lettuceisnotenough.com