Economy

REAGAN ALLOWED THREE COUNTIES IN TEXAS TO DROP SOCIAL SECURITY AND SETUP THEIR OWN – HERE’S HOW IT’S WORKING

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This should be a no-brainer, but liberals hate privatization because it robs them of funds they use through massive spending to buy votes. 

Conservatives would love to see Social Security privatized, however, the leftist-morons can’t stand it.

Every cent paid into Social Security helps fund the massive lump sum where Democrats and RINO’s spend every penny. As of now the government owes Social Security at least 2.8 trillion dollars, and to make things worse, no interest was paid on the money.

Even Ronald Regan gave three counties in Texas permission to drop out of Social Security and set up their own style when he was president. 

The counties and workers would then give the same amount of funds to the counties’ pension plan with the same amount of money they would give to Social Security. That money was then invested into their pension plan without wasting a penny.

The 37-year-old plan is still being used by Galveston, Matagorda, and Brazoria County. They are guaranteed a certain percentage of the companies bid as the money is turned over to a money manager.

Despite three years of the Great Recession, the fund has managed to return a profit every single year.  

So, which plan would you have rather invested in over your lifetime?

Written by Steen Ahle from steadfastandloyal:

The contributions are pooled, like bank deposits, and top-rated financial institutions bid on the money.  Those institutions guarantee an interest rate that won’t go below a base level, and could go higher if the market does well.  Over the last decade, the accounts have earned between 3.75 percent and 5.75 percent every year, with an average of around 5 percent.  The 1990s often saw even higher interest rates, 6.5 to 7 percent.  Thus, when the market goes up, employees make more; and when the market goes down, employees still make something.

Like Social Security, employees contribute 6.2 percent of their income, with the county matching the contribution (Galveston has chosen to provide a slightly larger share).  Once the county makes its contribution, its financial obligation is done.  So there are no long-term unfunded liabilities.

But not all of that money goes into an employee’s retirement account.  When financial planner Rick Gornto devised the Alternate Plan in 1981, he wanted it to be a complete substitute for Social Security.  And Social Security isn’t just a retirement fund; it’s social insurance that provides a death benefit—a whopping $255—survivors’ insurance, and a disability benefit.

That $255 comes with many conditions, so you are not even assured to get that. But in the Texas plan, a portion of your payment goes into a term life insurance policy of four times your annual salary up to a maximum of $215,000 or almost 850 times the amount paid by Social Security. Also, if someone dies under Social Security, that money they paid in is lost with the exceptions of minor children and their spouse if the spouse doesn’t work. Under the Texas plan, no money is lost and it all goes into their estate.

And those who retire under the Galveston model do much better than Social Security.  For example:

  • A lower-middle income worker making about $26,000 at retirement would get about $1,007 a month under Social Security, but $1,826 under the Alternate Plan, according to First Financial’s calculations.
  • A middle-income worker making $51,200 would get about $1,540 monthly from Social Security, but $3,600 from the banking model.
  • And a high-income worker who maxed out on his Social Security contribution every year would receive about $2,500 a month from Social Security vs. $5,000 to $6,000 a month from the Alternate Plan.

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