Becker & Associates
|Posted on August 10, 2015 at 3:35 PM|
We all know by now that $720 BILLION was borrowed from our Social Security fund by the current administration to pay for it's new Government run HealthCare. We got exactly what a citizenry who was not paying attention or holding their congress accountable for things like actually READING the bill before even considering imposing it on Americans can expect to get.
Throughout its 75 year history, Social Security has provided critical economic security to millions of retirees, families, children and the disabled. Social Security is paid for by the dedicated contributions of workers and their employers, has administrative costs of less than one percent, and since it cannot borrow to fund its operations, Social Security does not contribute to the deficit. No wonder that Americans from all walks of life consistently and overwhelmingly support our nation's most successful social insurance program -- a level of support that is not achieved by other governmental programs.Social Security is self-financed, cannot borrow, spends less than one percent on its administrative costs.
The government borrows these Social Security funds to pay for other government spending -- but is obligated to pay interest on these borrowings -- and pay back the borrowed funds in full when they are needed by Social Security for benefit payments. WHY aren't they paying it back?
A look at the federal budget over the same time frame reveals a starkly different picture -- many years of deficits, with only a few years of surplus -- a surplus that disappeared during the G.W. Bush Administration. In 1993, a Democratic Congress and President Clinton, without a single Republican vote in either the House or Senate, enacted a budget plan that put it on a path to elimination of the deficits --and brought the budget into balance, and then later into surplus.
The taxpayers of America bailed out the banks -- wouldn't it be fair now to ask the banks to pay back what they have cost Social Security? A tax on financial transactions and a tax on Wall Street bonuses, with revenues dedicated to Social Security, would pay back to Social Security and its contributors what has been taken from them.
Pay Back Social Security! -- The Government Has Borrowed More from Social Security (easy pickens) than any Other Entity or Foreign Government.
Another argument made by Social Security opponents to raise fear about the national debt is how much our government has borrowed from China. They never mention how much our government has borrowed from Social Security. In fact, the government has borrowed more from the Social Security surplus than it has from any other source in the world, including China. As a result, Social Security now "owns" nearly 18 percent of the federal debt, making it the largest single holder of US debt. The government owes almost twice as much to Social Security as it does to China and Hong Kong. ...and most Americans have no idea about this debt it seems, and are doing nothing to demand that the Feds pay US back!
We elect people who take our Social Security fund to fund a Government run Health Plan and just sit and watch the carnage done to what we've worked and contributed to for our whole lives. This "taking", "stealing", "Borrowing" or whatever we call it...the pillaging of a fund that working folks paid for, taken in order to pay for programs that the government will pay for is nothing more than a move to control the largest segments of the American economy.
How many Americans over 50 do you think are ready for life with no Social Security? The answer is not many! Only about 10% have saved enough to live life without a dime from social security.
Get a "Two-for"- Life Insurance with Long Term Care
Posted on July 17, 2015 at 4:25 PM Delete
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Using your Life Insurance for Long Term Care Expense:
Life Insurance policies are ever changing to meet the needs of our ever changing society. All the buzz is now on Long Term Care coverage, but if you've ever gotten a quote you know it is not cheap! Also, what if you never need it? Once you've paid the premium to the carrier for a Long term Care policy, it's GONE and you have nothing to show for it. Though there are benefits to having a comprehensive LTC (Long Term Care) policy...you can spell out the benefits in a more precise way, add on riders for COLA (Cost of Living Adjustments), etc, but the fact remains that it's expensive and if you never use it, it's money down the drain.
Do not mistake my message to mean LTC is not important! It is VERY important...in fact more important than ever, there are just more creative ways of getting it these days.
Using a Life Insurance policy with a guaranteed Death benefit and adding a 4% LTC rider is a very interesting solution. Let's use this example: You are healthy enough to purchase a $500,000. face amount and you become ill enough or have an accident and meet the requirement to be able to tap into your policy for its LTC benefits (the requirement for ALL LTC policies is just about the same, whether a policy or a rider) is being unable to do at least 2 of the ADLs - Activities of Daily Living). Using a $500,000. Death Benefit policy with the LTC rider of 4% per month = $20,000. per month available to you.
Per the IRS, at this time the maximum amount you may receive from your policy on a tax free basis is $330 per day or $9.900. per month. This is because the LTC benefit is essentially considered getting your Death benefit early. Depending on your needs, whether it be paying for a facility, paying for homecare, paying a relative to take care of you, you may decide to take only the tax free portion from your policy, but the full 4% is still available.
Then let's say you get better and return to life as normal in 6 months, you have taken or "used" (at $9,900. mo.) $59,400.00 of your Death Benefit thus reducing your policy's Death benefit to $440,600. This amount will be passed on to your heirs tax free OR be available for another round of LTC usage.
If you are 70 1/2 years old and are receiving "RMD"s (Required Minimum Distributions) from retirement funds that you don't really need, you can turn taxable income into tax free money using this strategy!
In summary, you've used tax free death benefits to pay for your Long Term Care needs and the money you've invested in your Life insurance is still there!
Example - A $500,000. Policy would cover the IRS maximum monthly LTC payment of $9,900. for 4.2 YEARS!
Some Statistics for the USA: For someone with a 90-day Elimination Period, the lifetime chance of someone buying coverage at age 60 and using policy benefits was 35%. So, 35% will use their coverage and 65% will not. As you might assume, the decline is because during those first 90 days, some people will recover and some will die.
Here is some meaningful information on nursing home lengths of stays as published in the Association's 2008 LTCi Sourcebook. Remember, that most long-term care is actually received at home but there are still fewer statistics about home care utilization for "long-term care" needs. When we get relevant ones we will publish them for consumers to read. Notice that the length of time that anyone stays in a Nursing Home is well under five years! We must consider the time that most people need in home care too, please see "Long Term Care Info & Statistics" blog for more info.
Average Length of Stays (Nursing Homes)
5 years or more - 12.0%
3 to 5 years - 12.0%
1 to 3 years - 30.3%
6 to 12 months - 14.2%
3 to 6 months - 10.0%
Less than 3 months - 20.0%
Average Length of Stay in Years
Female - 2.6 years
Male - 2.3 years
Married - 1.6 years
Single / Never Married - 3.8 years
Widowed - 2.3 years
Divorced / Separated - 2.7 years
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