Data reflects 2013 debt and deficit numbers.

The United States is heading toward bankruptcy and nothing is being done to prevent it.

The politicians of both parties have given us no answers nor plans for how to deal with:

  • The $18.4 trillion national debt
  • The $14 trillion in unfunded liabilities from Social Security
  • The annual deficits of $400 billion to $500 billion every year

In bankruptcy everything will be lost, and there is no one and no nation big enough to bail out the United States of America. But, there is hope – the Plan For America.

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What is the Plan For America?

It’s a comprehensive solution to the Social Security funding crisis and a remedy for our suffocating national debt. It is different from any other proposed solution because it has a powerful, rapid-growing funding source that ultimately enables it to fulfill its objectives.

The plan truly is for America because it provides a bigger slice of an expanding pie for each citizen and, at the same time, solves the nation’s financial problems.

Let your Senators and Congress Representatives know that you want this new plan NOW!

Data reflects 2013 debt and deficit numbers.

What does the Plan For America do?

Saves America from BANKRUPTCY!
  • In bankruptcy, everything is lost including Social Security, Medicare, Medicaid, ObamaCare, Welfare, Food Stamps, and everything else.
  • America is $18.4 trillion in debt and is running up annual deficits of $500 billion every year.
  • The so-called “unfunded liabilities” (i.e. the dollars that will be needed to pay for the Social Security obligations in future years) amount to about $14 trillion.
  • The great tragedy is that the government of the United States of America does not even have a plan to eliminate the annual budget deficits. Therefore, those in the government have no idea of how to deal with the debt or the unfunded liabilities.
  • Plan For America® (PFA®) will establish a large and continually expanding source of funds that will be targeted to solve our nation’s financial problems.
    • First, PFA will take on and pay off all of the unfunded liabilities arising from Social Security.
    • Second, it will consistently reduce the annual budget deficits until the deficits are turned into annual surpluses.
    • Third, after deficits have been eliminated and the unfunded liabilities have been paid off, then the debt itself will be paid down and paid off.
Increases and GUARANTEES Social Security Benefits
  • Social Security benefits, both retirement and disability, will be guaranteed by the enormous funding of the plan as well as by the “full faith and credit” of the U.S. Government.
  • Social Security benefits will be at least the level that they are at the present, and in most cases will be far greater than they are today.
  • Retirees that have paid into the For America Security Trust (FAST) will have a tax-free cash flow to pass on to his/her heirs no matter how modest his/her earnings have been.
  • Retirees and disability recipients will no longer have to live in fear that they are going to lose their benefits in national bankruptcy and they are likely to enjoy increasing benefits throughout the years.
Reduces Taxes for Every Working American
  • The payments that now go to Social Security payroll taxes will become tax-deductible contributions to each individual’s FAST account.
  • The benefits received from the retirement payout will be 100% tax free, both income and estate (federal and state).
Creates Millions of New Jobs

Under PFA, job creation in the U.S. should increase dramatically and be maintained because:

  • Almost $1 trillion of new capital would be injected into the market and the economy every year.
  • A former President Clinton economic adviser, Laura D’Andrea Tyson, in 2011 said that a one-time addition of $1 trillion would create as many as 2.5 million new jobs.
  • The U.S. Chamber of Commerce in 2011 said that a one-time $1 trillion addition would create as many as 3 million new jobs.
  • PFA would add about $1 trillion every single year; therefore, millions of jobs would be created on a continuing basis.

America’s Retirement Benefits will be Protected by Contract
  • The major social programs (Social Security, Medicare, Medicaid, and ObamaCare) were all created by Congress and signed by a President.
  • Anything created by an Act of Congress and signed by a President can be ended or changed by an Act of Congress that is signed by a President.
  • PFA would not only be enacted by Congress and signed by a President, but it would also have a contract among the Federal Government, the fifty state governments and FAST making the people’s benefits safer.
    • Ideally, a constitutional amendment would make it even safer from the politicians.
Federal and State Debt would be Reduced and then Paid Off
  • FAST will create an enormous and continuously growing cash flow.
  • This cash flow will first be used to pay for current retirees’ benefits.
  • After those obligations are met, then the “unfunded liabilities” will be paid down until they are eliminated.
  • Finally, the huge annual cash flows would be used to pay down and pay off all federal and state debt.
Will Lower Federal and State Taxes
  • After federal and state debt has been eliminated then the enormous annual cash flows from FAST would be directed to reduce the need for taxation on both the federal and state level.
  • The funds would be split 50% to the Federal Government and 50% to the states.
  • The states’ share would be determined by how much of the nation’s business (percentage of Gross Domestic Product – GDP) was generated in each state. The purpose is to promote a business-friendly environment and to make each of the states compete for business.
  • After all tax needs have been met, the excess cash flow would be distributed to FAST account holders on a pro rata basis so as not to leave excess funds in the hands of politicians that could be used for corruption, fraud, and abuse.
Social Security Trust Fund

What about the $2.8 trillion Social Security Trust Fund? Does that mean Social Security is in good financial condition?

Unfortunately, the answer is NO.

  • First of all, the unfunded liabilities of Social Security total about $14 trillion which dwarfs the $2.8 trillion in the trust fund.
  • Second, over the last 30 years, the politicians have taken all of the money out of the trust fund and replaced it with U.S. Government notes (IOU’s). Normally, that would not necessarily be bad except that those IOU’s cannot be sold, and the only way to get the money out is for the Government to put money in to redeem those notes.
  • Third, the Government has $18.4 trillion in debt and is running annual deficits in the amount of about $500 billion. Therefore, the only way to get money to redeem the notes is to borrow more money. Sadly, the Government has mountains of debt but no cash.
Does the Success of PLAN FOR AMERICA® Depend upon Additional Contributions Over and Above the Payroll Tax?

NO! PFA does not require Americans to contribute any more than they are currently paying, which is:

  • 6.2% of earnings from the employee, and
  • 6.2% of earnings from the employer.

Projections
  • CBO projections allow a 6.2% rate of return to be used for stock market investments.
  • The historic U.S. stock market returns over the last 89 years has averaged about 10.2%.
    • According to Ibbotson: large cap stocks have averaged 10.1%
    • According to Ibbotson: small cap stocks have averaged 12.2%
    • A blend of the two indices into a total market index would be about 10.2%
    • Therefore, the CBO projection is about 40% below the historic average
  • The long-term inflation rate over the last 89 years according to Ibbotson is 2.9%.
  • Social Security future cost projections incorporate the Federal Government’s assumed rate of inflation.
  • To be consistent for comparison purposes:
    • Either historic returns for the stock market and social security inflation rates should both be used, or
    • The CBO 6.2% rate should be used for the stock market and the social security inflation rate should be reduced by 40%
    • However, Plan For America will still succeed even with the uneven “playing field.”
How Can PFA Guarantee a 4% Compounded Rate of Return on Participant Contributions?
  • The PFA funds are invested 100% in a total market index of U.S. equities that have historically produced about a 10.2% compounded rate of return. 4% is over 60% less than 10.2% which is a low amount of risk.
  • The PFA collects 2% annually on all funds within the trust.
  • Therefore guaranteeing 4% while collecting 2% each year on an investment that has averaged 10.2% over the last 89 years seems to be eminently doable.
  • Also the ability to sell U.S. government guaranteed bonds to raise capital to weather temporary downturns insures against “drawdown.”
Additional Features
  • PFA will transform Social Security from a severely underfunded pay-as-you-go retirement scheme to a fully self-funded individually-owned plan.
  • Each PFA account holder will have a legacy of an income and estate tax-free cash flow to leave for his/her heirs.
  • The U.S. savings rate has been hovering around the 5% mark for the last three years. Under PFA, the savings rate would soar to 12.4% in addition to whatever amount is saved outside the plan.
  • Every working American that joins PFA will have an equity stake in America. The benefits of stock ownership will be enjoyed by all, NOT just the wealthy. The U.S. will be transformed from having a “Culture of Debt” to have a “Culture of Equity.”
  • Recently, a number of U.S. corporations have left the U.S. to merge with foreign corporations for the purpose of lowering their tax exposure. This process has been called “inversion” and it is eroding the U.S. corporate base. Under PFA, corporations are likely to want to relocate to the U.S. in order to be included in the index of U.S. corporations that are the beneficiaries of the approximate $1 trillion of annual investment.

Let your Senators and Congress Representatives know that you want this new plan NOW!

Young, single woman

What does the Plan For America do for you?

Below is an example to illustrate what PFA can do:

  • 26-year old single woman
  • Earns $25,000 per year
  • Never gets a raise
  • Retires in 40 years at age 66

Her guaranteed retirement benefits would be significantly greater than Social Security using any 40-year period of US stock market history from 1926-2014!

Data reflects 2013 debt and deficit numbers.

Data reflects 2013 debt and deficit numbers.

Am I required to join the Plan For America (PFA)?

No. Each U.S. citizen gets to choose whether he/she wants to remain in the Social Security program or to voluntarily opt out of it and into the PFA.

How do the Plan For America (PFA) retirement benefits compare with Social Security?

The PFA guarantees each year’s retirement benefit to be the greatest of the following three; therefore, it will be at least equal to Social Security and, most likely, far greater.

  1. The present level of Social Security benefits.
  2. 4% of the total of all contributions made to the For America Security Trust (FAST) with a 4% compounded annual rate of return.
  3. 4% of the amount of the individual’s FAST balance at the end of the previous year.