Tuesday, July 21, 2015

Issue 638 We need rich old people July 21, 2015

We really do need rich old people.  You are wondering why you aren’t.  Allow me to explain.

Rich elderly wanted:  One of the main reasons is that they are out of the workforce sooner.  This frees up jobs for younger individuals who otherwise would not be able to move up, or get hired if the senior were still working.  Also, rich elderly do not need as much aid or can pay for their own aid which means less need for our seniors having to go on welfare to simply live their lives.  But how can this be achieved?

Making more rich seniors:  For one, just like increasing access for the poor with stocks, not taxing any investments in any way and not pre-taxing investments when they are invested like a 401 K allows for the possibility of more disposable income.  However, we should not tax any of their income past a certain age.  As such, they can hold out longer with respect to supporting their daily living arrangements without the need for any form of aid.  Basically do not tax them under any circumstance.  Even if you do not change anything else, by simply not taxing seniors they are able to live their lives with less out of pocket cost and less stress.

Another thing we can do is use Social Security to increase the money they would get.  To do this, the money would be invested as soon as someone starts paying into the system.  First it will go into high risk stocks and then into low risk as time goes on.  However, to ensure they do not lose money, the government will have reserve funds to make up any loses, and a portion of the money being gained from the investments will help to rebuild this fund after a loss.  As such, the fund is being built up constantly to protect from market failures.  Also, once reaching retirement, a guaranteed minimum of money will be there for the least fortunate of seniors.  In this case, the poverty level of a given area will be determined, then money will be tacked on so that the poor person reaches the economic level of lower middle class citizen of that area.  Basically, enough so that they will live comfortably without need to have their money increased yearly by a cost of living adjustment.  The money should also be given in a large lump sum so that they can budget themselves accordingly without fear of delayed or lost checks or computer glitches in a direct deposit.  


Conclusion:  I am really drawing a blank on what more can be done to make more seniors that much richer and make it so they have to rely on others less.  Technology will certainly help with home delivery of groceries, smart homes that handle tasks for people, and even exoskeletons to keep the seniors moving so that they remain physically healthy.  All of these aid in reducing costs in one way or another for seniors.  Remaining healthy and active alone is a major benefit for they do not have to pay medical costs, or waste money paying for gas.  Heck, even the hybrid homes idea by Elon Musk will do wonders in savings for our seniors’ energy bills.  There must be more we can do?  We just haven't thought about it yet.

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