Sunday, August 28, 2011

Dear Washington

Dear Washington

By Keith Bunn Jr.
August 28, 2011

This is a letter I should, and would, send to our government if I thought it would make a difference…

Dear Mr. President, members of Congress, and the House of Representatives,

As I’m sure you are all aware by now, the American people are not very happy with you all. You have squandered our money in ways most of us have disapproved of for a very long time. It wasn’t until we lost our “AAA” debt rating, that you may have finally opened your eyes about what you have done.
It has gotten to a point where you think you need to start making cuts to what you referee to as “entitlements”. I agree with you on that point as long as you are not talking about Social Security. Even though Social Security was never designed to be this way, it has been the soul income for a lot of people for a long time. But if you are truly bent on making cuts in that area, I have a few suggestions for you…

  • All those who are receiving social security now, whether its for their retirement, disability, or death benefits, will continue to receive those benefits, without losing a single penny, until their death, are no longer disabled, or are no longer eligible to receive death benefits or a combination there of.
  • If you are 45 years old or older, they will also get full social security benefits just for the simple fact they have paid into it most of their adult lives and they are entitled to it.
  • If you are 21 to 44 years old, they will have the option to opt out of receiving social security benefits. If they choose to opt out, they will no longer have to pay into the social security system, nor be eligible to receive social security for their retirement, disability, or death benefits according to present day guide lines. However, if they choose to stay in, they will continue to pay into the system and be eligible to receive full social security benefits also according to present day guide lines. I think the majority of this age group will not opt out just because I don’t think they know what I know.
·    If you are under 18 to 20 years old, they will no longer be paying into the social security system and will not be eligible to receive social security for their retirement, disability, or death benefits according to present day guide lines. They will be fending for themselves until their deaths. Unfortunately, I think the majority of this age group will not be please with this because this age bracket believes they are entitled to things whether they have paid into it or not. Also, they don’t know what I know.

Even though everyone wouldn’t be happy with this plan, I think the majority would and it would give the system time enough to purge itself and make people more dependant on themselves instead of the government. That’s what you wanted when you said cut backs on entitlements, right? The only side effect would be is that you would be losing revenue. Oh well, you can have your cake and eat it to.  
As for the 18 to 44 year olds that don’t know what I know, I’m going to teach them! Because if they knew that if they took just what they pay into social security each week and invested that, they would receive way more in that investment than they would ever get from having social security benefits.


Keith Bunn Jr.

Now, do I think Washington would ever do anything like this? Absolutely NOT. Do I really think this would work?  Absolutely!  Let me explain.
Our senior citizens get an average of $1094. a month in social security benefits. If they started collecting it at the age of 65 and lived until they were 95, 30 years, they would have received only $32,820. Not very good for a 47 year investment.   
  Now if I were 18 years old and paid $122. a month, every month in a 10% rate of return, decent growth stock mutual fund for 47 years (18 to 65), I would get $1,576,976. Now you tell me which dollar amount you would like to have at retirement. I thought so.
And here’s the kicker, your social security benefits don’t get passed on to your heirs. When you die, your benefits stop. If you do it the way I explained above, your heirs inherit a million bucks. How cool is that?

“A good man leaves an inheritance for his children's children.” - Proverbs 13:22 –

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