PFA Healthcare Tutorial
READ MORE
Plan For America’s healthcare plan provides high-quality health insurance for every American. It includes some popular features of Obamacare such as coverage for pre-existing conditions and children are covered by their parent’s insurance until age 26. It also covers dental, orthodontic, vision, hearing aids, prescription drugs, extended care or nursing homes, and virtually every healthcare need.
Attached to the standard policy is an annual Health Savings Account equaling $1,200 to pay for the deductible and co-pay in any given year. Also, any Health Savings Account funds that go unused can be withdrawn tax-free at the end of the year.
The PFA standard policy would be for $1 million of lifetime benefit. If the $1 million limit was reached and the participant did not have additional insurance or funding, an interest free loan would be extended by the For America Security Trust for whatever amount was needed. There is no ultimate cap on benefits.
Under PFA, health insurance is truly affordable. People earning less than $40,000 a year are eligible for 100% of premium interest free loan. This loan is not paid back with out-of-pocket funds. Repayment is made by the excess earnings on their FAST account or by the PFA life insurance issued in the case of their passing.
One PFA mantra is: “No one, meaning the taxpayer, would have to pay for someone else’s healthcare.” But how would this work in the case of a person who never worked a day in their life? Let’s create an example: A 26 year old never works a day in their life and lives 60 more years. Adding together the premiums plus the health savings account multiplied by 60 years equals $672,000 of unpaid, interest free loans. Upon their passing, the total amount of the uni-sex/uni-age life insurance would also be 672,000, which would be deposited into the account and satisfy the debt.
So, what measures does PFA use to help contain healthcare costs?
Attached to the standard policy is an annual Health Savings Account equaling $1,200 to pay for the deductible and co-pay in any given year. Also, any Health Savings Account funds that go unused can be withdrawn tax-free at the end of the year.
The PFA standard policy would be for $1 million of lifetime benefit. If the $1 million limit was reached and the participant did not have additional insurance or funding, an interest free loan would be extended by the For America Security Trust for whatever amount was needed. There is no ultimate cap on benefits.
Under PFA, health insurance is truly affordable. People earning less than $40,000 a year are eligible for 100% of premium interest free loan. This loan is not paid back with out-of-pocket funds. Repayment is made by the excess earnings on their FAST account or by the PFA life insurance issued in the case of their passing.
One PFA mantra is: “No one, meaning the taxpayer, would have to pay for someone else’s healthcare.” But how would this work in the case of a person who never worked a day in their life? Let’s create an example: A 26 year old never works a day in their life and lives 60 more years. Adding together the premiums plus the health savings account multiplied by 60 years equals $672,000 of unpaid, interest free loans. Upon their passing, the total amount of the uni-sex/uni-age life insurance would also be 672,000, which would be deposited into the account and satisfy the debt.
So, what measures does PFA use to help contain healthcare costs?
- Any withdrawn Health Savings Account funds are also tax-free incentivizing people to use their healthcare only when they need it.
- Each standard PFA policy has a $1 million cap. After that, the individual’s funds or interest free loans to their account are needed.
- PFA’s insurance providers will be required to publish a menu of their services and the charges. This will enable PFA participants to be informed consumers and better able to manage their $1 million lifetime benefit.
- All insurance policies and benefits from PFA providers will be available nationwide. Competition will keep prices in line with actual costs. And lastly…
- If these cost containment measures were not sufficient, then indexing the premiums, the health savings account, and the insurance cap would be implemented.
PFA Retirement Tutorial
READ MORE
Retirement under Plan For America will be far greater for retirees and much more secure than the underfunded Social Security program. Each retired participant will receive annually the greatest of three calculations.
The greatly increased PFA retirement benefits will not cost the participants anymore than they are currently paying for their payroll taxes which is 7.65% out of their paychecks and the 7.65% that their employer pays. Instead that combined 15.3% going to the government for taxes, will be deposited into an account at FAST for the individual. The FAST will invest all of the money into a total market index type fund of US based companies. PFA provides the best of both worlds: Government guarantees for safety and Stock Market returns for growth!
Participation in PFA is voluntary not mandatory, but because the benefits are so overwhelmingly greater, participation is likely to be almost universal. The investment returns for FAST are calculated by taking the total annual return for the FAST index and subtracting a 2% annual FAST charge. The 2% charge goes to providing the 4% guaranteed return, enabling interest-free loans for those who cannot afford their healthcare, and covering the cost of administering PFA. Historically, over the last century, the stock market has averaged returns of 10.2% annually. Therefore, after FAST takes its 2%, an 8.2% rate of return would be the average for participants. However, PFA’s econometric model is based on a very conservative 6.2% return (about 40% less than historic norms) and yet it still accomplishes all of its objectives.
All contributions to FAST are tax-deductible and the retirement payouts are tax-free. The account and the cash flow are the property of the participant. Therefore, upon the participant’s death, the cash-flow-benefits will pass to the heirs estate and income tax-free. A participant who wants to contribute more than the 15.3% of earnings is permitted to add an additional $100,000 on a tax-deductible basis.
This amount is limited because PFA is not designed as a tax-shelter for mega-rich billionaires.
It is important that the FAST invests exclusively in US based companies for two reasons.
- The present level of Social Security benefits calculated and indexed for inflation. This means, you will never receive less from Plan For America than you are already promised by Social Security. And that is just the start.
- A 4% payout of your total contributions to the For America Security Trust or FAST for short with a guaranteed 4% compounded annual rate of return
- A 4% payout of your FAST balance at the end of the previous year.
The greatly increased PFA retirement benefits will not cost the participants anymore than they are currently paying for their payroll taxes which is 7.65% out of their paychecks and the 7.65% that their employer pays. Instead that combined 15.3% going to the government for taxes, will be deposited into an account at FAST for the individual. The FAST will invest all of the money into a total market index type fund of US based companies. PFA provides the best of both worlds: Government guarantees for safety and Stock Market returns for growth!
Participation in PFA is voluntary not mandatory, but because the benefits are so overwhelmingly greater, participation is likely to be almost universal. The investment returns for FAST are calculated by taking the total annual return for the FAST index and subtracting a 2% annual FAST charge. The 2% charge goes to providing the 4% guaranteed return, enabling interest-free loans for those who cannot afford their healthcare, and covering the cost of administering PFA. Historically, over the last century, the stock market has averaged returns of 10.2% annually. Therefore, after FAST takes its 2%, an 8.2% rate of return would be the average for participants. However, PFA’s econometric model is based on a very conservative 6.2% return (about 40% less than historic norms) and yet it still accomplishes all of its objectives.
All contributions to FAST are tax-deductible and the retirement payouts are tax-free. The account and the cash flow are the property of the participant. Therefore, upon the participant’s death, the cash-flow-benefits will pass to the heirs estate and income tax-free. A participant who wants to contribute more than the 15.3% of earnings is permitted to add an additional $100,000 on a tax-deductible basis.
This amount is limited because PFA is not designed as a tax-shelter for mega-rich billionaires.
It is important that the FAST invests exclusively in US based companies for two reasons.
- All of the companies would have to abide by the same accounting and legal requirements
- Most importantly – as its name implies Plan For America is designed to benefit all Americans by recycling those enormous investment dollars back into the US markets to benefit not only the retirees but also the workers and the citizens.
PFA Funding Source Tutorial
READ MORE
Retirement under Plan For America will be far greater for retirees and much more secure than the underfunded Social Security program. Each retired participant will receive annually the greatest of three calculations.
The greatly increased PFA retirement benefits will not cost the participants anymore than they are currently paying for their payroll taxes which is 7.65% out of their paychecks and the 7.65% that their employer pays. Instead that combined 15.3% going to the government for taxes, will be deposited into an account at FAST for the individual. The FAST will invest all of the money into a total market index type fund of US based companies. PFA provides the best of both worlds: Government guarantees for safety and Stock Market returns for growth!
Participation in PFA is voluntary not mandatory, but because the benefits are so overwhelmingly greater, participation is likely to be almost universal. The investment returns for FAST are calculated by taking the total annual return for the FAST index and subtracting a 2% annual FAST charge. The 2% charge goes to providing the 4% guaranteed return, enabling interest-free loans for those who cannot afford their healthcare, and covering the cost of administering PFA. Historically, over the last century, the stock market has averaged returns of 10.2% annually. Therefore, after FAST takes its 2%, an 8.2% rate of return would be the average for participants. However, PFA’s econometric model is based on a very conservative 6.2% return (about 40% less than historic norms) and yet it still accomplishes all of its objectives.
All contributions to FAST are tax-deductible and the retirement payouts are tax-free. The account and the cash flow are the property of the participant. Therefore, upon the participant’s death, the cash-flow-benefits will pass to the heirs estate and income tax-free. A participant who wants to contribute more than the 15.3% of earnings is permitted to add an additional $100,000 on a tax-deductible basis.
This amount is limited because PFA is not designed as a tax-shelter for mega-rich billionaires.
It is important that the FAST invests exclusively in US based companies for two reasons.
- The present level of Social Security benefits calculated and indexed for inflation. This means, you will never receive less from Plan For America than you are already promised by Social Security. And that is just the start.
- A 4% payout of your total contributions to the For America Security Trust or FAST for short with a guaranteed 4% compounded annual rate of return
- A 4% payout of your FAST balance at the end of the previous year.
The greatly increased PFA retirement benefits will not cost the participants anymore than they are currently paying for their payroll taxes which is 7.65% out of their paychecks and the 7.65% that their employer pays. Instead that combined 15.3% going to the government for taxes, will be deposited into an account at FAST for the individual. The FAST will invest all of the money into a total market index type fund of US based companies. PFA provides the best of both worlds: Government guarantees for safety and Stock Market returns for growth!
Participation in PFA is voluntary not mandatory, but because the benefits are so overwhelmingly greater, participation is likely to be almost universal. The investment returns for FAST are calculated by taking the total annual return for the FAST index and subtracting a 2% annual FAST charge. The 2% charge goes to providing the 4% guaranteed return, enabling interest-free loans for those who cannot afford their healthcare, and covering the cost of administering PFA. Historically, over the last century, the stock market has averaged returns of 10.2% annually. Therefore, after FAST takes its 2%, an 8.2% rate of return would be the average for participants. However, PFA’s econometric model is based on a very conservative 6.2% return (about 40% less than historic norms) and yet it still accomplishes all of its objectives.
All contributions to FAST are tax-deductible and the retirement payouts are tax-free. The account and the cash flow are the property of the participant. Therefore, upon the participant’s death, the cash-flow-benefits will pass to the heirs estate and income tax-free. A participant who wants to contribute more than the 15.3% of earnings is permitted to add an additional $100,000 on a tax-deductible basis.
This amount is limited because PFA is not designed as a tax-shelter for mega-rich billionaires.
It is important that the FAST invests exclusively in US based companies for two reasons.
- All of the companies would have to abide by the same accounting and legal requirements
- Most importantly – as its name implies Plan For America is designed to benefit all Americans by recycling those enormous investment dollars back into the US markets to benefit not only the retirees but also the workers and the citizens.
PFA Contract Tutorial
READ MORE
Plan For America is to be established by legislation that authorizes the Federal Government to enter into a three party contract with the 50 states and an independent trust called the For America Security Trust (FAST). This is essential in order to protect the people’s assets from the politicians. With no contract, they might plunder the people’s assets as they did with the Social Security and Medicare Trust funds.
A contract is a legal agreement that has penalties for violating the terms of what each side has promised to live up to. It will be long-lasting only if it benefits all parties. Let’s take a look at what each of the three parties receives (benefits) and has to give up (costs).
“We the People” represented by FAST.
Benefits
1. America will have a retirement and healthcare trust that is independently and fully funded
2. Retirement and disability benefits are guaranteed to be at least equal to what Social Security provides but in most cases will be far greater
3. Healthcare benefits will be comprehensive and far greater for every US citizen than what is being offered under Medicare, Medicaid or Obamacare
4. There are various tax savings:
6. The current 15.3% payroll tax becomes the contribution to FAST retirement – no additional funding would be required
7. PFA will provide a basic financial plan for every American including health, disability and life insurance, retirement benefits, tax benefits and an estate legacy for even the lowest income wage earner.
Costs
1. Zero, nada nothing!
The Federal Government – Uncle Sam
Benefits
1. Being relieved of an estimated $140 trillion of unfunded liabilities. This is the amount of money that will be needed to pay for all of the promised benefits from Social Security and Medicare
2. Being relieved of the yearly Medicaid costs estimated to be around $450 billion per year and increasing about 5.4% annually
3. Between 2059 and 2079 FAST will have paid off all of the unfunded liabilities and will give the Federal Government 50% of its yearly surplus which is expected to be trillions of dollars each year to pay off the national debt
4. After the national debt has been fully repaid then the 50% of annual surplus trillions from FAST would be used to reduce taxation and eventually become the main funding source for Federal Government operations replacing the need for taxation
Costs
1. The Federal Government must allow any citizen that wants to opt out of Social Security, Medicare, Medicaid and Obamacare and join FAST to do so
2. The payroll taxes are repealed for anyone who signs the contract. That 15.3% of earnings which now goes to their account at FAST, along with the optional $100,000 additional contribution is tax-deductible.
3. The other various tax concessions enumerated as benefits to the participants.
4. And finally, FAST can issue bonds to pay for benefits as it builds its powerful revenue stream. The US Government would guarantee and pay the interest on these bonds. However, ultimately FAST pays the principal.
The 50 States
Benefits
1. States would be relieved of their Medicaid obligations equaling roughly 17% of most state budgets.
2. Each state, if it elects to do so, could be relieved of its pension liabilities – both the funded and unfunded portions
3. Between 2059 and 2079, FAST will have paid off the unfunded liabilities and will send 50% of its yearly surplus (trillions of dollars) to the states on a pro rata basis for debt relief. This pro rating is determined by the percentage of total US GDP generated by that state.
4. After the state’s debt is retired, the 50% surplus will used to pay for the state’s operations and once again reducing the need for taxation
Cost
1. Each state’s tax-free municipal bonds would have to compete with the tax-free dividends from US based publicly held corporations. This would likely require that these bonds pay higher rates of interest in order to attract investors.
2. And also, the previously enumerated tax concessions.
In short, PFA’s contract gives the people a sterling retirement and healthcare plan while giving the federal and state governments debt relief and a revenue stream. Ultimately, all parties benefit tremendously.
A contract is a legal agreement that has penalties for violating the terms of what each side has promised to live up to. It will be long-lasting only if it benefits all parties. Let’s take a look at what each of the three parties receives (benefits) and has to give up (costs).
“We the People” represented by FAST.
Benefits
1. America will have a retirement and healthcare trust that is independently and fully funded
2. Retirement and disability benefits are guaranteed to be at least equal to what Social Security provides but in most cases will be far greater
3. Healthcare benefits will be comprehensive and far greater for every US citizen than what is being offered under Medicare, Medicaid or Obamacare
4. There are various tax savings:
- a. All FAST insurance premiums (life, disability and health) will be tax-deductible and all benefits will be received tax-free
- b. All FAST retirement contributions are 100% tax-deductible and all payouts will be tax-free and will pass to heirs income and estate tax-free
- c. Dividends on common stock of publicly traded US based corporations will be tax-deductible to the corporation and tax-free to the recipient
6. The current 15.3% payroll tax becomes the contribution to FAST retirement – no additional funding would be required
7. PFA will provide a basic financial plan for every American including health, disability and life insurance, retirement benefits, tax benefits and an estate legacy for even the lowest income wage earner.
Costs
1. Zero, nada nothing!
The Federal Government – Uncle Sam
Benefits
1. Being relieved of an estimated $140 trillion of unfunded liabilities. This is the amount of money that will be needed to pay for all of the promised benefits from Social Security and Medicare
2. Being relieved of the yearly Medicaid costs estimated to be around $450 billion per year and increasing about 5.4% annually
3. Between 2059 and 2079 FAST will have paid off all of the unfunded liabilities and will give the Federal Government 50% of its yearly surplus which is expected to be trillions of dollars each year to pay off the national debt
4. After the national debt has been fully repaid then the 50% of annual surplus trillions from FAST would be used to reduce taxation and eventually become the main funding source for Federal Government operations replacing the need for taxation
Costs
1. The Federal Government must allow any citizen that wants to opt out of Social Security, Medicare, Medicaid and Obamacare and join FAST to do so
2. The payroll taxes are repealed for anyone who signs the contract. That 15.3% of earnings which now goes to their account at FAST, along with the optional $100,000 additional contribution is tax-deductible.
3. The other various tax concessions enumerated as benefits to the participants.
4. And finally, FAST can issue bonds to pay for benefits as it builds its powerful revenue stream. The US Government would guarantee and pay the interest on these bonds. However, ultimately FAST pays the principal.
The 50 States
Benefits
1. States would be relieved of their Medicaid obligations equaling roughly 17% of most state budgets.
2. Each state, if it elects to do so, could be relieved of its pension liabilities – both the funded and unfunded portions
3. Between 2059 and 2079, FAST will have paid off the unfunded liabilities and will send 50% of its yearly surplus (trillions of dollars) to the states on a pro rata basis for debt relief. This pro rating is determined by the percentage of total US GDP generated by that state.
4. After the state’s debt is retired, the 50% surplus will used to pay for the state’s operations and once again reducing the need for taxation
Cost
1. Each state’s tax-free municipal bonds would have to compete with the tax-free dividends from US based publicly held corporations. This would likely require that these bonds pay higher rates of interest in order to attract investors.
2. And also, the previously enumerated tax concessions.
In short, PFA’s contract gives the people a sterling retirement and healthcare plan while giving the federal and state governments debt relief and a revenue stream. Ultimately, all parties benefit tremendously.
PFA Social Safety Net Tutorial
READ MORE
PFA will provide US citizens with the best social safety net in the world. Everyone (especially those with very modest means) who enroll in PFA will have a basic financial plan provided for them. The five key elements covered in PFA’s financial plan are: Insurance, investment, tax, retirement, and estate.
1. Insurance planning
a. PFA participants will have high quality health insurance that covers pre-existing conditions, has $1 million cap [see healthcare tutorial]
b. Long-term care insurance (nursing home) covered under health insurance
c. It includes disability insurance plus if the participant elected to do so they could have additional coverage on a guaranteed issue basis regardless of health status or occupational status.
d. Life insurance –
1. The life insurance is uni-sex, uni-age and guaranteed-issue basis (regardless of health status) – This insurance is available at the participant’s option for personal or family needs [see Q&A for more details]
2. This life insurance is mandatory in the amount of any loan from the For America Security Trust (or FAST) to the participant in an equivalent amount to the loan. The amount of the premium is therefore added to the loan annually. But let me remind, the loans made for the health insurance are never paid out of pocket. They are paid from the excess earnings on the participant’s FAST account.
2. Investment planning
a. 15.3% of earnings will be invested into participants’ FAST accounts and will earn the stock market rate of return minus the trust’s 2% charge with a minimum of 4% compounded annually
b. Optionally up to $100,000 could be invested in the same manner
c. Investments in common stock of US based publicly traded corporations that pay dividends will be tax-free.
3. Tax planning
a. All types of insurance (health, disability and life) purchased through FAST will be tax-deductible and all benefits, tax-free.
b. The Health Savings Account ($1200 annually) is tax-deductible and any portion that is unused at the end of the year can be withdrawn tax-free.
c. All contributions to FAST retirement account are tax-deductible and upon retirement all proceeds paid out are tax-free
d. After the participant passes away, the account’s cash flow is paid out to their heirs estate and income tax-free
e. All dividends on the common stock of US based publicly traded corporations are again tax-free
4. Retirement planning
a. Upon retirement the participant will receive the greatest of three calculations
1. The amount that Social Security would pay if they were in the Social Security program
2. The total of all contributions to the FAST with a 4% compounded rate of return and paying out 4% of that amount
3. 4% of the total value of the participant’s account at the end of the previous year
5. Estate planning
a. Upon the participant’s death and once all FAST loans have been repaid out of the account, the heirs now receive this cash flow income and estate tax free
PFA’s social safety net is unique because it is based on individually owned and individually-funded insurance policies and retirement accounts. This enables PFA’s participants to pass their retirement account’s wealth on to their heirs in the form of tax-free cash flow because the account is not with the government and is not ceded to the government upon death.
1. Insurance planning
a. PFA participants will have high quality health insurance that covers pre-existing conditions, has $1 million cap [see healthcare tutorial]
b. Long-term care insurance (nursing home) covered under health insurance
c. It includes disability insurance plus if the participant elected to do so they could have additional coverage on a guaranteed issue basis regardless of health status or occupational status.
d. Life insurance –
1. The life insurance is uni-sex, uni-age and guaranteed-issue basis (regardless of health status) – This insurance is available at the participant’s option for personal or family needs [see Q&A for more details]
2. This life insurance is mandatory in the amount of any loan from the For America Security Trust (or FAST) to the participant in an equivalent amount to the loan. The amount of the premium is therefore added to the loan annually. But let me remind, the loans made for the health insurance are never paid out of pocket. They are paid from the excess earnings on the participant’s FAST account.
2. Investment planning
a. 15.3% of earnings will be invested into participants’ FAST accounts and will earn the stock market rate of return minus the trust’s 2% charge with a minimum of 4% compounded annually
b. Optionally up to $100,000 could be invested in the same manner
c. Investments in common stock of US based publicly traded corporations that pay dividends will be tax-free.
3. Tax planning
a. All types of insurance (health, disability and life) purchased through FAST will be tax-deductible and all benefits, tax-free.
b. The Health Savings Account ($1200 annually) is tax-deductible and any portion that is unused at the end of the year can be withdrawn tax-free.
c. All contributions to FAST retirement account are tax-deductible and upon retirement all proceeds paid out are tax-free
d. After the participant passes away, the account’s cash flow is paid out to their heirs estate and income tax-free
e. All dividends on the common stock of US based publicly traded corporations are again tax-free
4. Retirement planning
a. Upon retirement the participant will receive the greatest of three calculations
1. The amount that Social Security would pay if they were in the Social Security program
2. The total of all contributions to the FAST with a 4% compounded rate of return and paying out 4% of that amount
3. 4% of the total value of the participant’s account at the end of the previous year
5. Estate planning
a. Upon the participant’s death and once all FAST loans have been repaid out of the account, the heirs now receive this cash flow income and estate tax free
PFA’s social safety net is unique because it is based on individually owned and individually-funded insurance policies and retirement accounts. This enables PFA’s participants to pass their retirement account’s wealth on to their heirs in the form of tax-free cash flow because the account is not with the government and is not ceded to the government upon death.