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Author: rkmacdonald Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Re: The Personal Accounts in SS Date: 2/4/2005 7:35 PM
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Author: Lokicious | Date: 2/4/05 5:24 PM | Number: 11810
Rich people are essentially self-insured. Most probably buy insurance, anyway, but for most of the stuff that the rest of us must have insurance for, except personal liability, they really don't need it. If a rich person's house burns down, it can be done without or replaced. If the $100,000 sports car gets totalled driving drunk at 50 miles above the speed limit in a school zone, as long as the lawyers get you off with a fine and a warning, the cost of a new sports car is a blip. Disability is covered by family resources, as is long term care. Life insurance is not needed if you can leave a hefty inheritance.

For rich people, Social Security is just a low-return investment...

For rich people, it is not just that Social Security is progressive....

For rich people, the added income boost from annuitizing is also irrelevant....

For rich people, and this pertains not only to Social Security but to investment in general, being "stuck" in low paying government bonds is a loss of the potential returns from higher risk investments....

Of course, rich people aren't taking the same kind of risks if high risk investments don't pay off....

For most of us, "Better safe than sorry" is a much more reliable proverb than "Nothing ventured, nothing gained." "Freedom's just another word for nothing left to lose," only works if you've hit bottom.....


I can't let this go unanswered.

How do you think rich people become rich? Do you think they just luck into it? Or maybe you think they inherit it?

Well, the answer is that most wealth is the result of hard work over an extended period of time. The only luck that most wealthy people have ever had is that they were born in a country where everyone is free to use their intelligence and apply their work ethic and take chances in order to succeed.

You may be surprised to learn that less than 1 percent of this country's wealthy people became wealthy from inheritance, and that number is continually going down from one generation to the next. The tax structure in the past has made it nearly impossible to pass on a family fortune. At the same time, the number of millionaires continues to climb. Why do you suppose that is??

It's because of freedom - and especially the American free enterprise system!!

Do you realize that Americans work more hours per week than any other developed country in the world? Why do they do this? Because they enjoy it!!! Because they have tasted success, and competition, and winning, and they like it. That's what freedom is all about. That's what sets our country apart from all the other countries in the world.

Most of the losers in this country are simply not willing to put out the hard work necessary to succeed. They want an easy job that doesn't take much education or ambition and the end result is a lack of financial success. Then they expect the government to take money away from the high achievers and give it to them. Well, that, my friend, is socialism, and that will spell the end to our great society.
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