Kiawah Golf Investment Seminars

Let’s K.I.S.S. Social Security Goodbye: Part 4

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Providers:

All eligible providers will be required to accommodate Social Security Retirement Accounts, and will do so through a separate organizational entity or department with no other responsibilities. Every provider will be allowed to charge a management fee of 1% of the market value of the Trust, quarterly, and in arrears only. There can be no other fees or charges of any kind, including marketing, trading fees, or anything else. Each provider is solely and legally responsible for providing full and complete benefits to the participants in its managed Trust Fund, to the total extent of its corporate assets, above and beyond the Trust Fund. Providers will, as an employee pool of first resort, hire any displaced persons who are no longer needed in the newly streamlined federal Social Security Administration. The Pension Benefit Guarantee Corporation will insure all of the individual Trust Funds. 

The contents of the Managed Trust Funds are expected to be different, but no competitive statistics or propaganda can find its way into any advertising, which is limited to a simple statement of availability. It is expected that some funds will operate at more of a surplus some years than others. It’s OK. When the Federal SSRP Administration determines that a significant surplus exists, 25% of such surplus can be made available to the Health Care Trust Fund

Providers will be required to share the wealth with others in the industry, so that each becomes experienced, respected, and capable of handling the growth and responsibilities of the Trust Funds they manage. The Social Security Administration will monitor Fund asset size and membership to assure parity between providers. There will be no sales commissions of any kind. Participants will choose from a list of qualified providers, and their employers will deposit participants’ payroll deductions accordingly. The participant/benefit provider relationship is a permanent one, for life, in the interests of facilitating the goals of the program, and of keeping the system as simple as possible to administer.

Benefits:

Only two benefit payment plans will be available: (1) a fixed life annuity and (2) a lesser, fixed life annuity with a spousal or partner benefit. There will be no life insurance, disability insurance, and so on. All the pork will be gone. The amount of these retirement benefits will be calculated in the same manner as they are today, based on the amount contributed, duration of participation, etc. (The SSRIA is another alternative.)

Because individual retirement contributions will now be pooled and invested, the amount needed to provide benefits will become less and less instead of more and more. Beginning in the second year after implementation, Social Security salary deductions will be reduced 10% per year until they are roughly 40% of what they are today, and at that time, there will be no additional employer matching contributions. During this same five-year transitional period, all taxation of withdrawals from conventional individual retirement account (to retired persons only) will be reduced to zero. 

Finally, any citizen of the United States, working or not will be able to make a tax deductible contribution of up to $5,000 annually to a conventional IRA program, whether or not he or she is a participant in any other type of retirement plan. An additional after tax $5,000 can be contributed to a Roth IRA as well. There are no income restrictions, period!

Click for Details --> Social Security Goodbye Part 5 <--

 
Kiawah Golf Investment Seminars
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Please read this disclaimer:
Steve Selengut is registered as an investment adviser representative. His assessments and opinions are purely his own. None of the information presented here should be construed as an endorsement of any business entity; the information is only intended to be educational and thought provoking.

Please join the private article mailing list or Call 800-245-0494 for additional information

Risk Management: Income, 401k, and IRA Programs

Take a free tour of a professional investment managers' private SEP IRA program during ten years surrounding the financial crisis:

CLICK HERE

In developing the investment plan, personal financial goals, objectives, time frames, and future income requirements should all be considered. A first step would be to assure that small portfolios (under $50,000) are at least 50% income focused.

At the $100,000 level, between 30% and 40% income focused is fine, but above age 50, the income focus allocation needs to be no less than 40%... and it could increase in 10% increments every five years.

The "Income Bucket" of the Asset Allocation is itself a portfolio risk minimization tool, and when combined with an "Equity Bucket" that includes only IGVSI companies, it becomes a very powerful risk regulator over the life of the portfolio.

Other Risk Minimizers include: "Working Capital Model" based Asset Allocation, fundamental quality based selection criteria, diversification and income production rules, and profit taking guidelines for all securities,

Dealing with changes in the Investment Environment productively involves a market/interest rate/economic cycle appreciation, as has evolved in the Market Cycle Investment Management (MCIM) methodology. Investors must formulate realistic expectations about investment securities--- by class and by type. This will help them deal more effectively with short term events, disruptions and dislocations.

Over the past twenty years, the market has transitioned into a "passive", more products than ever before, environment on the equity side...  while income purpose investing has actually become much easier in the right vehicles. MCIM relies on income closed end funds to power our programs.

To illustrate just how powerful the combination of highest quality equities plus long term closed end funds has been during this time... we have provided an audio PowerPoint that illustrates the development of a Self Directed IRA portfolio from 2004 through 2014.

Throughout the years surrounding the "Financial Crisis", Annual income nearly tripled from $8,400 to $23,400 and Working Capital grew 80% $198,000 to $356,000.

Total income is 6.5% of capital and more than covers the RMD.

https://www.dropbox.com/s/b4i8b5nnq3hafaq/2015-02-24%2011.30%20Income%20Investing_%20The%206_%20Solution.wmv?dl=0

Managing income purpose securities requires price volatility understanding and disciplined income reinvestment protocals. "Total realized return" (emphasis on the realized) and compound earnings growth are the key elements. All forms of income secuities are liquid when dealt with in Closed End Funds. 



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Please read this disclaimer:
Steve Selengut is registered as an investment advisor representative. His assessments and opinions are purely his own and do not represent the views of any other entity. None of his commentary is or should be considered either investment advice or a solicitation of business. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be or should be construed as an endorsement of any entity or organization. The reader should not assume that any strategies, or investments mentioned are any more than illustrations --- they are never recommendations, and others will most certainly disagree with the thoughts presented in the article.