Of course a pessimist is on the top of the list of people who are likely to lose hope and get depressed. Check out the ONLY economist we listen to Brian Wesbury on how pessimism is the biggest destroyer of investor success. [Read more…]
The bill approved in Congress to avert the fiscal cliff would bring the first major tax increase on high earners in 20 years. Ed Slott and Company IRA Technical Consultant Jeffrey Levine details 5 key 2013 retirement planning points pulled from the Taxpayer Relief Act of 2012. Key points include estate tax levels, the expiration of the payroll tax holiday and a permanent AMT patch. [Read more…]
Is Social Security a good retirement plan? Economics professor Antony Davies shows that Americans stand to earn significantly less and assume more risk with Social Security than other investment options. According to Davies, taxpayers would be better off both in terms of financial security and return on investment by investing their money privately. Social security is extremely expensive, soon to be insolvent, and doesn’t even offer taxpayers the most bang for their buck. For those reasons, Prof. Davies argues that it is time for the government to phase out Social Security. Davies’ solution: the government should honor its obligations to current retirees while giving Americans the freedom to invest their money as they see fit. [Read more…]
When our Founders promised the “pursuit of happiness,” what they were really promising was the ability to earn our own success—to create value with their lives, and create value in the lives of others. This is not about money, fame, or power. Those are just measures of earned success. Other measures—maybe the ones in your life—include help to others or the creation of something beautiful. [Read more…]
by Richard E. Reyes, CFP
Even if you are retired today, the greatest detriment to your future is not short-term portfolio swings but rather the long-term devastating affects of inflation on your spending power. [Read more…]
“Entrepreneurs, businesspeople, small business owners — they’re failing America.”No, AEI President Arthur Brooks isn’t blaming business leaders for America’s economic malaise. But he is concerned that they’re not standing up for the free enterprise system that enabled their businesses to prosper. Free markets need defenders. And those defenders have to be the heroes of the capitalistic system. It’s time for business leaders to make the moral case for free enterprise — by talking about earned success, real fairness, and lifting up the poor and vulnerable here and around the world. [Read more…]
The distinction between the 99% and the 1% assumes that there is a ruling class that is permanently in place, but this view is completely inaccurate. It misses the story of income mobility. [Read more…]
Worried about the fiscal cliff that will supposedly send the U.S. into a recession and the stock market reeling? Is the USA, like Thelma and Louise, driving itself of a (fiscal) cliff? What is the fiscal cliff? Reporter Jill Schlesinger explains the fiscal cliff in the above video. [Read more…]
Many have suggested raising taxes on the rich to cover the difference between what the government collected in revenue and what it spent. Is that a realistic solution? Economics professor Antony Davies uses data to demonstrate why taxing the rich will not be sufficient to make the budget deficit disappear. He says, “The budget deficit is so large that there simply aren’t enough rich people to tax to raise enough to balance the budget.” Instead, it’s time to work on legitimate solutions, like cutting spending. [Read more…]
Prof. Antony Davies analyzes Social Security in the United States through the lens of a typical 22 year old American. Assuming that Social Security is completely solvent, the expected return on investment (ROI) of Social Security is far lower than the expected ROI of a private account. Further, if an individual could hypothetically opt out of Social Security payments and invest the funds entirely in Treasury Bills, the Treasury bills would even yield a greater ROI.
Thanks to www.LearnLiberty.org.