The Best Alternative to Social Security

The best alternative to Social Security is a whole life insurance plan. The next best alternative to Social Security is a universal life insurance plan. I will just focus on the whole life insurance plan today.

A whole life insurance plan provides a life insurance feature which is the face amount of the insurance plan while the cash value feature is your cash build up. Both the face amount and the cash build up is guaranteed for your whole life. A 5% guaranteed interest rate is typical in most whole life insurance plans. You should buy as large a face amount as you can afford. This will allow for a larger cash build up. Remember that the cash build up is tax-free and can be borrowed whenever you decide to do so. No questions asked. However, for the purposes of  retirement, you should not touch it until you are ready to retire.

If you have beneficiaries, you can easily see the value of a plan like this. If you pass away prematurely, your beneficiaries will receive the full face amount which can be annuitized after the death benefit is paid.

Nevertheless, for this plan to work properly, you must tell your Representative and Senators that you want the Social Security System to be privatized and don't accept no for an answer.  Do not equate this strategy with putting your money into the stock market. This has nothing to do with the stock market.

Keep in mind that the Social Security System is already paying out more money than it's taking in and will be totally bankrupt in a just a few years. The politicians don't care. They have arrogated to themselves a fabulous retirement program with our money.

In a coming blog, I will show you what  a great cash build up you can anticipate when you can take the same money you are putting in a dysfunctional Social Security System and choose this alternative.

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Social Security is not Insurance. It is Going Broke.

The Social Security System is not insurance. It is going broke earlier than expected.

Back in the 80's I wrote that the Social Security System would be broke, or shall I say bankrupt, by 2012. Now it appears that it is already paying out more money than its taking in.

If you will not be retiring within the next few years, be prepared to accept that your government has stolen your money and that you will never see any benefits. All Social Security taxes now being paid by current workers are used to pay the bureaucrats' salaries and the current beneficiaries. There is no "lock box". The money is being spent as fast as its coming in.

You must tell your Representative and Senator that you want the same retirement plan that they and the rest of the federal work force have. There must not be any inequalities in retirement plans.

Two Great Benefits from Whole Life Insurance - Retirement and Education

Two great benefits from whole life insurance are the funding of your retirement and the funding of a college education.

The retirement funding is for your retirement. While the funding for a college education is for your children. You can either partially or wholly fund your retirement from the cash value feature of your whole life insurance policy. The cash build up is tax free, guaranteed, and can be borrowed and never paid back if you choose not to do so.

This same cash value feature can be used to fund your youngster's college education. However, two key points to keep in mind, the policy must insure you, the parent, and the face amount should be as large as you can reasonably afford.

With such a policy in place, you don't have to constantly watch the fluctuations of the stock market. Rather you just have to pay the premiums monthly, quarterly, semi-annually, or annually and concern yourself with other things.

Let me have your comments.