Try Using Cash to Control SpendingIf you're like most people, you use plastic for many of your daily purchases. Since more places take credit or debit cards and many of these cards offer rewards or...Consider Online Banks for Higher Interest RatesStock market got you down? Looking to put more money away in case of an emergency or job loss? If so, you've probably been thinking about stashing more money away...Adjust Your Tax Withholding for 2009We're still a few months away from the April tax deadline, but that doesn't mean you should put off tax planning today. One of the easiest things you can do...
to provide Social Security Retirement Income Annuities (SSRIAs). Thousands of providers will be needed, but only, fixed income experienced, profitable companies need apply. 2) Developing a computerized system for participant/provider matching... inspired randomness is essential. 3) Proactive monitoring of compliance with the minimal rules, installation of fraud detection systems, and investigation of all violations by providers, participants, and retirees, 4) Keeping the plan sacred, simple, and principally unchanged by future legislation. The plan must be kept: simple and profitable for providers; painless and visible to participants; timely and comprehensible to retirees.
The SSRIA is a new and improved version of the ancient Deferred Fixed Annuity Contract... a boring but guaranteed retirement benefit vehicle, funded by both mandated and voluntary payroll deductions, with a whole bunch of new wrinkles that make it an ideal Social Security replacement program. For example, and unlike existing annuity contracts: 1) Participants will be allocated to "qualified SSRIA providers" so there will be no sales commissions, no business acquisition or retention costs, no advertising expenses, etc. 2) All SSRIA contracts (regardless of provider) will contain the same terms, interest guarantees, retirement benefit choices, and pre-retirement death benefits, thus eliminating any incentives for internal fraud and manipulation of statistics. 3) Qualified providers will establish separate subsidiaries to manage and control SSRIA operations and to assure that only high quality, income securities are used to fund future benefits. 4) All qualified providers will use the same mortality, investment earnings and expense assumptions, and all benefits will be fully guaranteed by the parent corporations.
The SSRIA is a supplemental retirement program, funded by a much smaller, yet flexible, payroll deduction, and it is designed to be the foundation of a retiree's total retirement package... a benefit floor. Participants will choose (annually, for the following year) to deposit from the required 2% up to a maximum 4% of their Pre-Tax Income to their personal SSRIA, a contract that will follow them everywhere, from employer to employer, throughout their working years. Before retirement, a death benefit equal to the full cash value of the contract will be paid to the designated beneficiary. At retirement, participants can elect either a Life Annuity or a Joint & 50% Survivor Annuity. No variable plans of any kind will ever be allowed; there will be no loan privileges, withdrawals, or dividends. Providers are expected to make a reasonable profit, which will ultimately be determined by their operating and investing abilities... hmmm, I smell capitalism.
Employer sponsored benefit programs and individual savings and investments are expected to make up the bulk of private retirement programs. The SSRIA will assure that every one has something, but individual savings and retirement plans, both company sponsored and personally funded, will be encouraged by new IRS policy. No retirement income, regardless of source will be subject to income taxation! Neither employers nor self-employed persons will be required to make matching contributions of any kind to employee SSRIAs. However, they will be encouraged to use their improved cash flow to increase employment or to reduce prices, perhaps by a new system that will reduce their corporate income tax obligations as a reward for boosting the economy. Similarly, billions of dollars of discretionary spendable income will find its way back into the economy from consumers whose payroll deductions have been slashed deservedly.
Subsequent articles will deal with: SSRIA Providers, Participation Rules, Transitioning the Change at Four Levels, and Dealing with the Obscenely Overpaid.
Article Source: http://www.articles-galore.com
Steve Selengutwww.sancoservices.comwww.valuestockbuylistprogram.comProfessional Portfolio Management since 1979Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"
Products and Services mentioned in this article are available Here
Here are some more financial planning articles...
