Posts Tagged ‘return’

Mind Diverted

Posted: August 15, 2019 in Thought for the Day
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“The mind ought sometimes to be diverted that it may return to better thinking.” -Phaedrus

“The way we treat retirees in this nation is broken…

When the government created Social Security, it was as an anti-poverty insurance program… not a way to pay for your entire retirement. In fact, it began with only a 2% payroll tax and promised to never take more than 6% of a worker’s pay.

That promise was broken.

Today, Social Security takes a combined total of 12.4% of your pay.

And what do you get guaranteed in return?

Nothing.

According to the Social Security Administration’s own website, the Supreme Court ruled in 1960 that citizens have no legal rights to Social Security, no matter how long they paid into the system.

Social Security’s costs this year exceeded its income for the first time since 1982.”

-P.J. O’Rourke

“Even if you buy a car with cash, you are forfeiting the opportunity of investing that cash and earning a return on it. So even people who always ‘pay cash’ still experience the same implicit trade-offs between spending now versus later…the real question is whether you are going to obtain your financing from a bank controlled by outsiders, versus a bank that you control.” -Robert Murphy

One key feature of the private reserve strategy is that one builds a pool of funds from which to finance many purchases in life.  The benefit is the interest paid returns to one’s own pool instead an alternate finance company.

“The purpose of the fund [family fund] is to help individual family members enrich their lives…. Children can borrow from the fund. But if they do, they must return the borrowed money with interest. They can use the money to start businesses or pursue educations, but they can’t use it to buy sports cars or yachts.” -Mark Ford

Excess Debt?

Posted: December 17, 2014 in Debt
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“Never borrow money unless you know—with a high degree of certainty—the asset you buy with borrowed money will yield a return far in excess of your debt service payments.” -Mark Ford