Preferred stocks, first mortgages, senior debentures, and other instruments are used to give certain owners of an asset prior claim over other interested parties.
It is time that retirement investors be given Preferred status over other investors such as insurance companies, banks, and foreign governments.
Companies issuing senior preferred stock to individual investors would have to subordinate all other claims to assets to the good Americans who work hard and are saving for their retirements.
The reason there is so much resistance to defined contribution benefit plans is because the small investor assumes far more risk than institutional investors.
We the People should be the last to loose when houses of cards come crashing down.
-RJM
Thursday, October 23, 2008
Why Complication?
Why is the savings system in America so complicated.
Banks and investment houses use the complicated tax code to create "investment vehicles" like Roth IRA'S or Keogh plans. This is done by supporting politicians.
Politicians have a thousand different ways you can become their friend. Campaign contributions, jobs for relatives, donations to their favorite think tank, hire them to give a speech, buy their book (tens of thousands of copies at a time), put them in a movie, etc.. , etc... , etc... !
With a new and complicated vehicle of your devising in the tax code, you can charge people to show them how to use it properly. If someone else tries, make sure you point out to the IRS exactly where they failed to dot an i or cross a T.
Savings Simplication would let you save without sending everyone else's kids to college, and without the worry of the IRS sending you to prison as part of some investment banks business plan.
-RJM
Banks and investment houses use the complicated tax code to create "investment vehicles" like Roth IRA'S or Keogh plans. This is done by supporting politicians.
Politicians have a thousand different ways you can become their friend. Campaign contributions, jobs for relatives, donations to their favorite think tank, hire them to give a speech, buy their book (tens of thousands of copies at a time), put them in a movie, etc.. , etc... , etc... !
With a new and complicated vehicle of your devising in the tax code, you can charge people to show them how to use it properly. If someone else tries, make sure you point out to the IRS exactly where they failed to dot an i or cross a T.
Savings Simplication would let you save without sending everyone else's kids to college, and without the worry of the IRS sending you to prison as part of some investment banks business plan.
-RJM
Its about the Retirement Stupid - Savings Simplification
Americans don't care about investments. What they care about is retirement.
After all we have let the whole investment system evolve into a way to lessen taxes on our retirement nest egg. We don't invest so that we can buy our next car, nor do we invest to have money for medical emergencies, nor do we invest to save for a down payment on a home.
No, we invest to support ourselves when we retire.
Unfortunately the whole system has become way too complicated. IRA's, Roth IRA,s, Keogh Accounts, Family Banks, LLC's, Trusts, the list goes on and on.
Do we have this complexity because our needs are so different, or is it designed to support the army of investment consultants, tax specialists, accountants, and lawyers we have to consult, and pay, to avoid having the government strip us of our hard earned dollars.
DNN will be exploring this subject - Savings Simplification - and would like to here your ideas on the subject.
-RJM
After all we have let the whole investment system evolve into a way to lessen taxes on our retirement nest egg. We don't invest so that we can buy our next car, nor do we invest to have money for medical emergencies, nor do we invest to save for a down payment on a home.
No, we invest to support ourselves when we retire.
Unfortunately the whole system has become way too complicated. IRA's, Roth IRA,s, Keogh Accounts, Family Banks, LLC's, Trusts, the list goes on and on.
Do we have this complexity because our needs are so different, or is it designed to support the army of investment consultants, tax specialists, accountants, and lawyers we have to consult, and pay, to avoid having the government strip us of our hard earned dollars.
DNN will be exploring this subject - Savings Simplification - and would like to here your ideas on the subject.
-RJM
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