PFA SUMMARY
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What is Plan For America (PFA)?
Plan For America is the comprehensive solution to the United States’ three major challenges:
It is a unique proposal that meets the needs of EVERYONE.
Different than any other proposed solution, at Plan For America’s core is an ever-increasing, cash-flow combined with an ever-decreasing liability that enables it to achieve its noble objectives.
Imagine an America where everyone has their own retirement account, a comprehensive healthcare plan, and the government’s debts are paid.
The time for “kicking the can down the road” is over. Let’s build a true and wise solution through Plan For America!
How does it work?
PFA benefits everyone by funding their retirement and providing comprehensive healthcare. These benefits will never be less than what is already promised by Social Security and will likely far exceed! But that costs trillions. How can promises that big be made without busting the bank?
This is where PFA shines. At the center of PFA, is a cash-flow that grows to be the funding source for everything.
“Ok, explain…”
Gladly! First, a trust is established called FAST (For America Security Trust). At FAST, individual accounts are created for everyone.
Now, you know those payroll taxes we all pay? Instead of your hard-earned paycheck going to the Social Security Fund where you DON’T have your own account and politicians frequently raid, your hard-earned money will go into your own personal account at FAST.
FAST pays the benefits by taking 2% of the corpus of the trust every year. This is the source of the cash-flow. Your money flows to your account from your paycheck and the trust pays the expenses.
But what about the “ever-growing” part?
The accounts are invested in a broad-market index of American companies where it grows and generates more capital. The more capital your account holds, the greater your benefits. AND the retirement benefits will NEVER be lower than what Social Security has promised. You can only win even in bad markets!
The Contract
If the last 80+ years of Social Security and then Medicare have taught us anything, it is that equity-type returns are a must to keep up with the benefits promised. The total UNFUNDED liabilities that will come due are north of $120 trillion. That’s right, there are ZERO funding sources for these liabilities. And that doesn’t even include the current federal debt owed plus the interest.
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THIS MUST CHANGE!Therefore, FAST must be kept out of the reach of the politicians. No more deciding some constituencies are more important than others. No more taking money that is promised to us, our kids, our grandkids, etc. for political gain.
It is far too short-sighted to pretend like this problem will just go away. Politicians kept haphazardly taking money out of the Social Security and Medicare trust funds. That’s your money!
That is why PFA is set up as an inviolable contract between the federal government, the 50 states, and you. It is YOUR money!
Now, we still have to remember the people currently receiving Social Security benefits who no longer are paying in as well as the people who need assistance paying for their healthcare. This is where the contract kicks in.
In order for the federal government to be relieved of its out-of-control deficits and liabilities, they must allow the payroll taxes from the people’s paychecks to flow into their own personal accounts at FAST. US-backed bonds (the highest possible credit rating) can be issued by FAST to cover the initial costs. The bonds are the responsibility of and will be paid off by FAST, not the government.
While FAST builds its enormous cash-flow, the US-backed bonds go to cover the benefits in the beginning years. Let me illustrate the scenario.
YEAR 1: The total contributions from everyone’s paychecks (equal to the payroll tax) is approximately $1 trillion. 2% of the corpus of the trust is then taken out to service benefits. That’s $20 billion. That’s not enough but that is where it begins.
YEAR 2: Another $1 trillion is contributed. The corpus of the trust is now roughly $2 trillion which means it now has $40 billion to use for benefits. YEAR 3: Another $1 trillion meaning $60 billion and so on and so forth. The growing cash-flow is catching up to its debts and will eventually be able to pay for itself. By also investing these accounts into an impartial index of American companies, FAST will be able to overcome and pay off its debts much quicker.
Over the last century, the markets have yielded roughly a 10% compounded annual rate of return, which includes the Great Depression! That means that even though the market goes up and down, over the long-term, the market has averaged 10% per year. The PFA model shows that it will be effective even at a 6.2% compounded rate of return! That's about 40% lower than average historic returns.
This powerful generator of cash-flow is what provides us all with our benefits. And the tenacity of American business helps drive these benefits so that every American wins!
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A Call to ActionPlan For America is the comprehensive solution to our greatest challenges and our successful future. And now, you are part of this important next step by learning and being informed. You have taken the time to think about an inclusive America where everyone is considered.
Like and follow us on Facebook! PFA has over 50,000 followers and many more are still needed. This is a great start but every person that joins makes the voice that much stronger.
Share your contact information! For those that are not on Facebook but would still like to remain informed, send your contact information and you will be included in any and all updates or articles.
DONATE at www.planforamerica.us!! Plan For America has been set up as a 501(c3) non-profit organization. This means all donations are tax-deductible!
Thank you for giving your time to learning about PFA. There is plenty more in-depth reading that can be done under our Q&A section, where the inner-workings of every mechanism are explained. Also, feel free to email us with any questions or suggestions! PFA is for all Americans and your input is very important. Let us create a future for all of us in Plan For America!
“What else can I do to help get the word out?”
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