Debt

Fixing The Economy IS Easy

Social Security
Means test benefits. If you made twice the median salary in your last 5 years of employment, you  get reduced benefits.
Eliminate the income limits. Why should you stop paying in just because you made more than $106,800? There are no income limits on medicare.

Revenues
Legalize and tax marijuana. That may be $40 billion to $100 billion in new revenue!
Legalize and tax sports betting. Although only 35 states currently allow "gaming", that number is sure to grow. Adding $50 million to a state budget will help to eliminate the need for federal dollars.

Economic Growth
A natural gas based economy. Get fleet vehicles and 18 wheelers running CNG. Get Detroit making those vehicles. And export LNG to other countries (USA natural gas is $2.76 but it can be liquified and sold much higher.

Homeless
Make shuttered schools into shelters. They have showers, gyms, bathrooms, cafeterias, computers, and plenty of room for beds. Laid off teachers can re-train these folks in the Cheapo Groovo system, which has no layoffs or outsourcing.


The Best Tax System

0%.

Did you know that we had no federal income tax until 1913 and no withholding until 1943. So what did we do until then to operate?

If we need a system, it should be a flat tax on all income (including passive income such as capital gains, dividends, MLP distributions, etc.). We could make the rate 35% but exempt the first 30K of income (the yellow line).

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Governing Downside Economic Risk

A governor, or speed limiter, is a device used to measure and regulate the speed of a machine, such as an engine. I have taken that concept and applied it to finance. You put in place a governor that limits the speed at which you could potentially lose money.

Here is how I apply it:

  • I do not buy disposable products. Why throw money in the garbage?
  • I place stop loss orders for every stock/ETF I own at 4.5% below its cost basis. My upside is not capped but my downside is.
  • I use alternative income streams rather than bet everything on a single business venture.

Tiny Home Living

We purchased our park model trailer for cash. We could only guesstimate our expenses. Now I can see how much they are. My goal of $860 a month (which I determined back in 2006) was pretty good!

All numbers are per month.

HOA dues = $58.33. This covers sewer, water, use of the lodge, road maintenance, etc.

Electricity = $110 in the winter, $20 in the summer. We use two electric space heaters during the cold months. Looking into a wood burning stove.

Propane = $37.50 for heat and cooking

Gasoline = $30 thanks to driving a Prius

Food = $400 since we dine out a lot and buy from the health food store. Can't grow anything w/o a hoop house.

Insurance (home, auto, health) = $308.33


The stock market bias is higher in the long run and here is WHY

Of course FED money printing, stock buybacks, and mergers play a huge role in sending stocks higher, but the number one factor is the way market averages are manipulated!

The components of the S&P 500 update periodically. Between 1/1/2005 and 1/1/2015, 188 index components were replaced by other components. In other words, drop the companies going bankrupt and replace them with companies in their growth phase.


Pay Out Social Security Contributions Then Shut Down the Program

SsOf course you can't do that because that would save the government literally trillions of dollars!

Take me as an example. I have paid in $69,058 as of 1/1/2011. Assume I could request a check for that amount right now and not collect Social Security at retirement.

If I live to 75 (male life expectancy from wiki) and retire at 62. I would receive $828 every month for 156 months from Social Security. That is $129,168.

The government saves $60,110.

Over the next 20 years, 74 million boomers will retire. If my situation is "typical" the government could save $4.45 trillion!


Beater Bucks ~ 7 Tips To Keep Your Car Running

  1. Change the oil and air filter per manufacturer recommendations
  2. Replace your timing chain per manufacturer recommendations
  3. Flush your coolant every 2 years
  4. Check your belts and hoses every oil change
  5. Check you tire pressure every fill up
  6. Replace your spark plugs every 2 years or so
  7. Hose down the underneath of your car if you live in an area where salt is used

Pre Pay Your Mortgage

I use a FREE Excel based mortgage spreadsheet to see how the life of my mortgage would change if I paid a little more each and every month to the principal. It amazed me! By paying just an extra fifty dollars a month, I was able to shorten the length of my loan by five years and ten months and save more than $18,000 in interest!


Visa and Mastercard Fostering Credit Card Fraud

Have you ever used your credit card and been asked for ID? Did you know this is against the merchant guidelines that govern Visa and MasterCard? MasterCard even has a simple-to-use form where you can alert them if a merchant required ID.

The policy does not make sense to me, especially since I sign the back of all my cards "photo ID required".