Intelligence Update for the World

There is a great way to stay abreast of world events.

This information is not mine but provides a great analysis of world events.

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Retirement in Delaware and the USA

Retirement used to be a three legged stool; personal savings, social security and pensions. About 40% of Americans have no personal savings, social security pays about poverty plus 10% and pensions will be a distant memory within the next ten years.

An article below notes the ever lower savings rate for Americans as a trend that will not stop . In an economy where the largest jump in wealth for most people has been their home there is little surprise.
http://www.frbsf.org/publications/economics/letter/2002/el2002-09.html
While we can all hope for our homes to continue to be part of our planning why not do something much better? How about Freedom Funds?

Think about this, be able to save pre tax 5% for retirement, 5% for education , 5% for long term health care( nursing home). After a large personal deduction of $10,000 per person, a flat tax rate of 17% and the previous savings the average family of four in Delaware would pay no Federal Income taxes. Along the way if they continue to be the “average family” and earn the ” average rate of return they would have a combined nest egg of $1,000,000 at age 65.

Now for Social Security. There is debate about when but some time in the next 30 years Social Security will not be able to pay the same level of benefits as it does today. Over the life of the program the tax rate has been changed 19 times and now the limit on taxable income is iindexed and goes up every year. Still, we have a problem. How about a universal 401K of 5% for all new workers? These new workers will have the benefit of saving so when the time comes for Social Security reductions they will have a replacement from that universal 401K.

Pensions. This is a sore subject for me as I lost my $1.5 million pension this year and while many people think the Pension Reform Act solved the problem- it did nothing and will not stop the gradual erosion of all pensions in America- except for Congressional Pensions which are 3 times as lucrative as private sector pensions. Why not scrap Congressional pensions and let them save like the rest of us? Also, why not require private pension insurance to guarantee pensions rather than the stopgap Pension Benefit Guaranty Corporation which is billions of dollars in the hole?

What do you think about Retirement???

Welcome To Delaware’s Future

Delaware is known for many things but in so many ways Delaware is falling behind the rest of the country in areas that are important for Delaware today and also for the future. This blog is not a Gossip blog although there will be names attached to issues when appropriate. We will be about substance.

In 2008 Delaware will go to the polls to elect a Governor and U S Senator so the issues posted will be both international, national and local in scope. If you are satisfied with life in Delaware this blog is not for you. I find few people in the state who say , “wow, our schools are the best, we have too many good paying jobs and our government is the best we can find.”

Quite the contrary. People are longing for vision and honesty and we hope to provide it on at least three times a week basis.

Mike Protack