Master CraftsMon

Monday, May 15, 2006

Is there a Conservative solution to Social Security?

Master CraftsMon - Aired Monday, May 15, 2006 at about 11pm CST - Segment 5

What are you going to do when you retire? Do you believe that Social Security will be there when you do retire? Shouldn't you want to make sure that you will have enough money to retire?

Think about this... too many people believe that benefits from companies are a right. The company is backing you. The company is doing these great things for you. In actuality, the company when it gives you benefits is deciding for you how to spend your money. Benefits are part of your salary package. You pay taxes on benefits.

I think benefits are a stupid idea. Whether you know it or not benefits are a solution to a problem that no longer exists. During World War II, there were wage and price controls. Companies came up with the idea of benefits to get around the wage controls.

The problem companies are having is that the benefits have gotten out of hand. I draw you attention to General Motors. They my go bankrupt. One of the largest companies in the world may go under because its pension plan is part of the company instead of owned by the individual worker.

I think there should be a company to handle your insurance, pension and other financial matters. I keep coming up with rotten names for the project. Help me out. Go to my blog and tell me what I should call it, after you listen to what I am talking about.

The goal of this project is to establish a corporation to take the salary of a given person and get the best group insurance rates available for that person. The corporation should invest in a pension fund for the worker. Instead of the company employing the worker paying the withholding taxes, the benefits company should do that for the worker. If we could just get social security privatized, then a benefits corporation would take care of pensions instead of the government. With this idea for a financial company, an individual would have their pension safe from their employers going bankrupt and they could move their pension from employer to employer. It also allows a person working for a small business to have the advantages of working at a huge company. A large employer can get the best rates on insurance and other services. A large financial company like this benefits company could do that as well.

The major question becomes: how do you start a company like that? And I don't know the answer. I do know that the company would have to have in its bylaws that the company would be dedicated to the long term wealth accumulation for its clients. I know that the benefits company would have the advantage of keeping the costs of an employer down, because the costs of pensions and insurance would suddenly be off the books.

I have been wondering whether a benefits company could purchase pensions from other companies. I have been wondering whether the benefits company could contract to take over the insurance for companies that already have insurance as one of their benefits. The whole point of the benefits company would be to stand beside the worker and provide all the financial services they needed. Too many financial companies are dedicated to pleasing their stockholders. The thing is that the benefits Company wouldn't be in the pension business, nor the insurance business, nor even the banking business. It would be in the people business. The goal of the benefits company would be to get the best deal for its customers from the specialist companies that already exist. By pooling customers they could get the best group rates possible. There is a practice in banking called securitizing loans. It means that you pool the risk of loans and sell the interest accrued from a set of loans. I believe that there is a way of doing this using customers as well. The benefits company could even have insurance for a pension fund going under, so that their customers would not be impacted in that unlikely event. Maybe not.

I need to get some more information before I do anything about the benefits company project. Do you want to help me out? Do you want to help found a corporation that would make a major impact on future generations, then go out to my blog and make some comments and suggestions and help me get things started.

Did you know that there was a poll taken and people under 35 were asked whether they thought they would get their social security? They also asked whether the same people believed in UFO's. More people believed in UFO's than believed that Social Security would pay them what they put in or more.

Something has to be done about Social Security going under. The lament "Someone should do something about that" should be met with "I'll try to do something myself. I won't wait for some politician to decide by polling data what needs to be done."


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