I thought that I would go on a rant, but it can be difficult to find the right words. Finance can be a tough topic to discuss because there are so many opinions and viewpoints. To add to this, there are so many different types of finance—debt, equity, debt-to-income, credit card, savings, personal, corporate, mutual, pension, etc.
While I think we often have the wrong idea about finance, there is actually a fairly solid middle ground between the extremes. This is probably what many of you are thinking. If you’re trying to be a “financial” expert, you probably need to start with the basics. The basics are, if you want to do it well, you need to know what a pension is, what a mutual fund is, and what a bond is.
Basically, a pension is an insurance policy that guarantees a certain amount of income going forward. This is usually in the form of a savings account or a loan. A mutual fund is basically a group of investment funds that pool and sell off shares of common property, like a company. A bond is basically a promise to pay a fixed amount of money in the future.
That’s all fine and dandy, but there are some things that you just can’t do well just by looking at the basics. Like, say, getting a pension. There are no guarantees of getting anything from the pension. In fact, in the long run it’s more likely that you’ll end up worse off than if you had not had a pension.
In the US, the government is responsible for paying the pensions of retired workers. The government gets a fixed amount per year based on the total amount of wealth in the country. So, say you have $100,000. The government will give you $10,000 per year. But, the government gets nothing if you die before reaching that year’s pension age. So, you’re left without a pension.
This is the same problem with pensions in the UK. The government taxes the wealth of people in the UK to pay their pensions. The government gets a fixed amount of money per year for every worker who dies. But, the tax collected is distributed to every citizen, regardless of how much wealth they have. So, if youre retired and you die before reaching your pension age, your money is gone.
In UK pensions, the government is doing well but the citizens are not. You know you have a pension because you get taxed to pay it. And this is bad for the taxpayers because it allows the government to collect taxes to pay for its pensioners.
The system is similar in the US, but the taxes collected are distributed among every citizen, regardless of how much wealth they have. So if youre retired and you die before reaching your pension age, your money is gone because you have no money in your bank account.
The government is not doing so well because government can spend more, but the people are not. The government is more of the same with the two most powerful people in the country collecting more taxes. The citizens are not being taxed at all because they have not earned any money. In fact, they may not even have any money in the bank. We are being taxed and taxed, and this doesn’t make sense and is bad for the people who are taxed.
There’s a problem with this thinking. Taxes are collected by the government for a variety of purposes, including military spending, social welfare, education, and so on. Taxes are also collected and spent to pay for things that everyone is required to live by, like roads and hospitals and prisons and other public services. People who are unemployed should not be forced to support the rest of us.