Social INsecurity

The U.S. government's Social Security system is a Ponzi Scheme.

A Ponzi scheme–like the U.S. government’s Social Security program–will only last as long as there are enough fools to cover the payments promised to those who came before. The question is: when and how will the fraud finally come to light? And what will happen when Americans finally acknowledge it for what it is?

AARP’s “Take a Stand” Program

Jo Ann Jenkins, CEO of the American Association of Retired Persons (AARP) writes, “Social Security is a promise we’ve been able to keep for generations, thanks to the courage of many of our nation’s leaders.” Fascinating sentence, that.

I am intrigued most especially by the reference to “we”—that “we’ve been able to keep” some “promise.” Who is this “we”?

And the idea of “courage” on the part of “our nation’s leaders.” –Really?

Jenkins attempts to explain herself:

The struggle to enact and improve Social Security took the leadership of Presidents Franklin D. Roosevelt, who started the program, and Ronald Reagan, whose bipartisan efforts saved the program from fiscal ruin in the 1980s. They stood up to critics, bridged political divides, and fought off constitutional challenges to protect the retirement security of the middle class and help keep tens of millions of Americans and their families financially resilient.

Now, she says, presumptive political leaders need to “tell all Americans how they’ll update Social Security . . . [to] keep [it] strong. . . . That’s why AARP [has created its “Take a Stand” program to press] the [current presidential] candidates to spell out their plans to keep Social Security’s promise alive for our children and grandchildren.”

Stirring words. Too bad they are so out of touch with reality.

If you are hoping to be Ready2Prosper in your older years, you would do well to pay attention. (more…)

Good Counsel for the Girl with the Three Loans

Liza's smile would be bigger and longer-lasting if she received better quality counsel.

Better quality counsel should put a bigger smile on Liza’s face . . . without risk it might suddenly disappear.

Tim Cardon, a professional financial counselor, told Liza, “The Girl with the Three Loans,” to clear out her IRA in order to pay off her car loan. I thought that was terrible advice. Here’s what I believe would have been better. (more…)

Pay Off the Car Loan: A Good Idea?

A Cash Flow Index analysis says, "Pay off the car loan." Good idea? Or bad?

Cash Flow Index says, “Pay off the car loan.” Good idea? Or bad?

A critical look at the “Cash Flow Index”-based advice a financial counselor gave to a woman who felt like she was slowly drowning in debt.


Last time, I summarized the advice Tim Cardon, an advocate for Dale Clarke’s “Cash Flow Index,” 1 gave to Liza, The Girl with Three Loans. He told her to use her IRA to pay off her car loan. It would give her much-needed cash flow. When she heard his advice, Liza was thrilled.

Today, I want to critique Mr. Cardon’s advice. (more…)