Things Smart Money Won’t Tell You

Written by Elaine Floyd, CFP | 09 September 2011

10 things Smart Money won't tell you about Social Security

You know Smart Money's regular feature "10 Things ____ Won't Tell You"— the sometimes informative but mostly cynical column that implies that everyone, from economists to your parents, is out to scam you? Well, the latest is "10 Things Social Security Won't Tell You". As a retort, here's my "10 Things Smart Money Won't Tell You About Social Security."

1. Social Security CAN pay its bills. Don't confuse the federal budget deficit with Social Security's self-funded system that has accumulated a $2.6 trillion SURPLUS. Social Security's only connection to the federal deficit is that the bigger the surplus, the more it lends to the U.S. government. In a twist of logic, the more solvent Social Security is, the more indebted the U.S. government becomes. That's not Social Security's problem. Social Security has its own dedicated source of revenues with current projections calling for full benefits to be paid until 2036; after that, revenues will be sufficient to pay 77% of currently promised benefits. The system is likely to be reformed before then.
2. The more you earn, the higher your benefit will be. OK, so there may be diminishing returns for someone who has maxed out Social Security every year for 35 years. But this information by Smart Aleck—I mean Smart Money, is not helpful. What is helpful is for everyone, especially women, to know that if they work a little longer and earn a little more, they can increase their lifetime Social Security income.

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The Case for Corporate Tax Reform

Written by Victor Guettlein, CFP® | 08 September 2011

Our corporate tax code is a complex relic keeping American corporations at a global competitive disadvantage, hampering domestic job creation, and actually reducing federal tax revenues. A new Policy Memo from Thirdway.org, a Democrat think-tank, lays out arguments why corporate tax rates should be LOWERED, and how the code can be modernized to make American businesses more competitive in a global marketplace. The piece is refreshingly non-partisan/non-political.

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