PLAN TO CHANGE SOCIAL SECURITY
For Social Security to continue to be successful, the money paid in through the years would have needed to be kept in a Trust Fund, as it was originally established. Unfortunately the Democratic Congress and Lynden Johnson raided the trust fund in 1965, and used the money in the General Fund. That put Social Security on a Titanic Course.
The current system will soon be bankrupt, and the young people are currently paying into a “retirement program” that will not be there when they retire. We must change the system. I propose that everyone 40 years or older, who have been paying into the current system be guaranteed their Social Security retirement money.
Everyone under 40 years of age will immediately stop paying into the current program, and we will create a different program that can never be touched by Congress, and can be passed on to their heirs. The program, along with the reason why I chose 40 years as the “cut off” age is as follows:
Everyone 40 years old and younger will enter a new “Social Security” Program
6.2% will be withheld from the employee’s check, with employer matching 6.2%
This money will be deposited into a bank account of the employee’s choosing
The employee can never withdraw deposited money from the account
Upon retirement at age 65, the employee withdraws only the annual interest earned
Upon death, the money from the recipient’s account transfers to accounts of their heirs
The government can never touch any of this money
The Government can only monitor that employee & employer are contributing properly
Self-employed will contribute 12.4%
Two Examples
Example 1:
A person enters the program at 25 who averages $50,000 per year till age 65, or 40 years
The recipient will have $6,200 contributed to their account each year
Assume the bank they have chosen pays an average of only 4% interest per year
At age 65 they will have $1,062,384 in their account
5) At 4% interest they will earn $42,495 annually, or $3541 every month
Example 2:
A person enters the program at 40 who averages $50,000 per year till 65, or 25 years
The recipient will have $6,200 contributed to their account each year
Assume the bank they have chosen pays an average of only 4% interest per year
At age 65 they will have $514,216 in their account
At 4% interest they will earn $20,568 annually, or $1,714 every month
The beauty of this program is that it gets better with every generation, because the children of
the original recipients will have their parent’s money added to their accounts, and the third generation will draw not only from their own contributions, but also from their parent’s and their grandparent’s contributions. A nice problem to have is that by the 4th or 5th generation we will need to prevent them from accessing any of the money until age 50, or we will have no workforce, because everyone will want to retire at 21. LET’S GET STARTED.
