W: The Planner, The Chosen Read Online Free PDF

$1230.50. Let’s suppose that our worker has a spouse who did not work enough to receive his/her own benefits—the average Social Security benefit for the spouse is $608.00 per month. Combined, we have an average monthly income of $1838.00 per month. Let’s say that you are a retiree and your house is paid for.  And let’s say that the value of that house is $350,000—in 2006 that was about the average price of a home in Arizona, and if you are now retired, it’s probably a good bet that you bought your house when the prices were up. If today your house is valued at $350,000 you have an annual tax rate on that house of $3500.00—just a hair shy of $300.00 a month. You also have insurance. Let’s say that the insurance is about $150.00 a month. Then you have utilities. Suppose your utilities—water, gas and electric, run another $300 a month. You are up to $750.00 a month just for taxes, insurance, and utilities.  So at the same time that the government is struggling to come up with ways to pay you, you, the retiree, are struggling to come up with ways to pay for a house that you don’t need any more.”
    Kris knew that she was going to regret this, but she asked the question anyway. “Shouldn’t we be taking into consideration that the majority of retired people have income in addition to Social Security? And those who don’t probably are living in cheaper housing with lower taxes and insurance?”
    Janice glared at her, “According to the Social Security Administration, forty-one percent of the income of people over sixty-five is Social Security. Fifty-four percent of married couples and seventy-three percent of unmarried individuals derive fifty percent or more of their income from Social Security.  Twenty-two percent of married couples and forty-three percent of unmarried individuals depend on Social Security for ninety percent of their income. For these individuals and couples, that check is basically all the money they receive.  And, yet, a big block of it is going to put a roof over their heads.
    “Our system is designed to overlook the less fortunate seniors—those who are alone through death or divorce, those who, perhaps, were not as upwardly mobile, those who experienced the hardships of life and did not save enough.  We give them barely enough to hang on and then a big block of that money goes to putting a roof over their heads. This is the kind of inequity that the Retire America Act is designed to correct.
    “Retire America will level the playing field between the more fortunate and less fortunate senior populations. Phase I began last year when the Act was passed by levying a tax on all retirement accounts, 401ks, and IRAs.  By applying a thirty percent tax to all of these accounts nationwide, we were able to allocate the funds we needed to pay for the pilot senior communities.
    “The next phase starts in 2016. At that time, all of the private retirement accounts in the United States will be rolled into the Retire America Fund. The U.S. government will completely back this new fund.”
    Several hands went up at once. Janice recognized a bony-faced woman sitting two rows up from Kris. “Yes, Lisa.”
    “If all the money goes into the Retire America Fund, then how will people manage their money? Will we get statements every month or every quarter?”
    “Once the Retire America Fund goes fully into effect Americans will no longer receive statements about their retirement funds. All of the money will go into a common fund, and as you retire you will receive it back again in the form of community credits.”
    Another group of hands went up with a lot more questions.
    “How can the money go into a common fund? How can we know which part is ours? How can we access ours?”
    Janice waved her hands to quiet everyone down.
    “Does anybody in this room remember Bernie Madoff?” Everyone nodded. “What about the financial crisis of 2008? Does anybody remember that?” There were more