In my opinion: Government is the problem.
Government, since the 1930s, has redefined itself as one big ponzi scheme. (I am using a lower-case P to emphasize how disgusted I am with that scheme.)
Let’s take a look; Social Security. Where is the money taken in invested? Nowhere. The payroll tax is just a tax that is being used to run the government.
So, how will the government be able to pay retirees and also provide inflation increases if the money paid in is not invested?
As an aide for Sherrod Brown told me, the money actually paid to retirees by Social Security and Medicare comes from the general tax revenue.
How can the government continue to spend money it does not have?
For a few years, it will try to hide its lack of cash by imposing more stealth taxes. The kinds of stealth taxes we are beginning to realize we’ll get from PPACA!
Remember the PPACA CLASS Act voluntary long-term care benefits program? Workers were going to have to pay into the program for five years before they would be eligible to file benefits claims.
So where would that money have been invested? Nowhere. It would have been used to fund other programs.
My solution to the LTC financing problems we’re facing: Privatization efforts, like the Medicare supplement program.
If we do not rein in our government and begin to think for ourselves, then we will become a puppet state like Orwell predicted. The clock is ticking!
— Read NAIC Acts On Annuity Suitability, Contract Resales, on ThinkAdvisor.
Gary M. Albert, CLTC, NSSA, is an insurance agent at Integrated Planning Strategies LLC in Cincinnati. He serves individuals and small businesses.