Proof You Will Become a Millionaire - (Dick McDonald. He's right, and has always BEEN right!)

When I tell people the NEW Social Security will make the poor rich and in most cases millionaires, I get this blank stare followed by skeptical disbelief. The reason for this response is quite simple. A barrier has been ingrained in people’s psyche. If it sounds too good to be true, it probably is. Another barrier is the belief that the combined intelligence of all Congressmen, Senators and Administrations for the last 70 years surely would have hit upon this bonanza if it were true. Well think again, my friends. Politicians are mostly lawyers and have little understanding of mathematics. In fact we put them on the cash basis of accounting just so they wouldn’t get too confused.

I marvel at those too blind to see the nuts right on the ground in front of them. Folks, wake up, someone has been pilfering your paycheck for 15% for years. For that investment in government you will get a skinny pension if you live long enough to collect it and your grand kids are there to pay for it. Otherwise that 15% is confiscated by Congress to buy favors and tribute. And the people put up with this theft without a whimper, thinking these intelligent politicians are doing the best they can. I hate to be the one to break it to you, but they have been hosing you for years.

But recently a guy has gotten into the politician’s hair. He started stumping to privatize Social Security in his run for the House in the late 70’s. He didn’t make it but had the gumption to keep going. Today he is in his fifth year as President of the United States and still stumping to privatize Social Security. The difference between George W. Bush and most politicians is he is a MBA from Harvard and not mathematically ignorant like most politicians. W understands compounding and the business principles that will make the poor wealthy. He is holding that as his trump card when the left least expects it.

In the meantime, I worry that many Republicans have no understanding about the trump card they hold. Privatizing Social Security will install them in Washington for decades to come. If we can stop trying to redistribute income from the rich to the poor and just make the poor rich, wouldn’t that be “Republican”. Who said government has to run our lives and our retirement. If we had the money, they could go suck a sock. That is what this site is all about. It socially and empirically shows you a better way to solve not only retirement but medicare and a host of other programs best handled by the voter. All the voter needs is the money. And now I will show you how to painlessly get it.

As most people are not comfortable with math, I have prepared three simple year-by-year computations to illustrate the amount of the nest egg that could be created in a 40-year working life for a

Now before you go catatonic on me, consult the year-by-year schedules prepared for you to verify the accumulation of these nest eggs, See Table 3, 4 and 5 on the website under “Tables” on the navigation bar. Follow each year, make the computation yourself and realize the magic that exists in “compounding”.

Each computation uses a rate of return of 10% which is more than 2% points below the average 40-year rate of return for the S&P 500 for those retiring each year between the period 1981 through 1999. See Table 1

Now some of you might be skeptical about earning a 10% rate of return and be concerned about the risk of investing in stocks. Well our example computations on our home page only use a 6% return and still make those poor men rich. Both the 3.3 million federal employees in the Thrift Savings plan and the many in the Galveston plan have consistently done better than 7% since they were started in early 1980s. That’s right, right through the “internet-Enron bubble” as well.

The rate of return on the S&P 500 since the 1871, the starting place for our 129-year study in Table 1, has been 9.7% annually; recently 12.5%. In fact, in the 40-year period ended in 1999, the rate was 17.4% for those folks. And if you were curious, our truck driver in Table 5, would have created a $53,817,020 nest egg at 17.4%. (See Table 6) It adds up so fast it makes your head spin. But go down to Office Depot or Staples and get a business calculator with the time value of money on it and prove it to yourself.

You will note that the Table 1 average bond rate for those many years is 4.1% which after subtracting the inflation rate of 3.1% nets a return for bonds of 1%. In fact, bond rates fell below the inflation rate in 20 of the 89 40-year periods studied which leads one to the almost unassailable conclusion that stocks have been safer than bonds because stock returns never fell below the inflation rate in any 40-year period studied..

Each of you should think hard about what you could do with 15% of your wages over a 40-year period assuming like we do you can’t withdraw any funds until the end of that period. Look at the Tables. Then read the reasons to Reform Social Security again and consider what is at stake for you and your family with this issue.

If you wish to help yourself or your kids and grand kids to realize the dream of the "ownership society" contribute to our cause by clicking the contribution tab on the home page of our website. It is going to take a major financial effort to mount a campaign to educate the people and enact targeted legislation . Please forward this article to your friends and e-mail it to friends, talk show hosts, Congressmen and Senators. I have recently been on the stump and am willing to travel to speak to groups and others interested in privatizing Social Security.

It would be self-defeating: if you create everyone into a millionaire, who'd be there to work as a plumber, or a janitor, to drive septic tank truck, or flip hamburgers - to do all kinds of unattractive jobs? To force millionaires into such positions one would need hyperinflation, so as to make their millions worthless. The whole notion of millionaire exists by contrast only - by contrast with somebody who is not, and is not even close. If everybody is a millionaire, nobody is.

My horoscope said I was supposed to win the lottery yesterday but NASA moved a comet out of place and cost me millions.

This is assuming the market continues providing higher-that-interest-rate returns. Unlikely.

I remember about 5 years ago I suggested a similar plan for privatized social security... I suggested it to a couple of liberals. Bill Clinton was still President.

They liked the idea.

Now they're totally opposed to it. Geez, I wonder why.

5 posted on 07/06/2005 7:11:01 PM PDT by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))

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