Ad Majorem.....Wealth Builders
FROM MONEY AND MARKETS - ON STATE OF US SSS
Is the US SSS a Ponzi scheme? The author says it is even worse because it is mandatory. What is a Ponzi scheme? As per SEC, Ponzi scheme is an "investment fraud that involves the payment of purported high returns from the investment of others."
SSS will continue to function as long as it pays out benefits to the retirees, from the payment of money of its younger members paying the premium. The problem is SSS is paying out more than it receives:
1. Salaries and opex of operating the SSS (why does the govt run the money of private employees?)
2. There is not enough money to pay out the benefits. The US SSS has been collecting more and more premium because "it has been paying out more than it receives" In 2009, it said it would run out of funds by 2041. In 2011, it announced it would run out of funds in 2037 (much earlier than projected). SSS admitted that it all ready in deficit since 2010. (There are even allegations that much of SSS obligations to future retirees is UNFUNDED THUS FURTHER BLOATING THE FEDERAL GOVT DEFICIT ESTIMATE TO BE BEYOND THE $16 TRILLION OFFICIAL DEBT!)
It is time to have an alternative retirement plan. You cant depend on somebody else, the govt take care of you in our old age.
Could it be happening in PHL?
FROM MONEY AND MARKETS - ON STATE OF US SSS
Is the US SSS a Ponzi scheme? The author says it is even worse because it is mandatory. What is a Ponzi scheme? As per SEC, Ponzi scheme is an "investment fraud that involves the payment of purported high returns from the investment of others."
SSS will continue to function as long as it pays out benefits to the retirees, from the payment of money of its younger members paying the premium. The problem is SSS is paying out more than it receives:
1. Salaries and opex of operating the SSS (why does the govt run the money of private employees?)
2. There is not enough money to pay out the benefits. The US SSS has been collecting more and more premium because "it has been paying out more than it receives" In 2009, it said it would run out of funds by 2041. In 2011, it announced it would run out of funds in 2037 (much earlier than projected). SSS admitted that it all ready in deficit since 2010. (There are even allegations that much of SSS obligations to future retirees is UNFUNDED THUS FURTHER BLOATING THE FEDERAL GOVT DEFICIT ESTIMATE TO BE BEYOND THE $16 TRILLION OFFICIAL DEBT!)
It is time to have an alternative retirement plan. You cant depend on somebody else, the govt take care of you in our old age.
Could it be happening in PHL?
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