Nelson Nash: Running Out Of Money! What You MUST Know About Social Security (19 of 30)

But this is a graphical representation of a 1958 commissioner's standard ordinary mortality table. And in a crowd of this size, I'd say at least one person in here is probably buttering under his breath. I wonder why this clown is showing me ancient history.

Don't they have a more modern mortality table?

Yes.

But this will help you think. And that's what this is all about.

Now.

In 1958, out of a thousand born, a thousand died.

I don't know three guys ever got in this world any other way. All the rest of us graduated.

Now, I, by age 45, 10% had died.

Now back in those days, you notice out of the 900 still living, 1/4 died by age 65.

Do you notice that practically all the dying got done past age 65?

Now we go ahead and take a side trip here. Where did this dumb idea of age 65 come from, please?

Do you know, actually, I've read the Bible through and through and I can't find a thing in the world in there about Moses retiring and living happening thereafter.

The word retirement does not appear in the vocabulary of human beings until 1890. Did you know that?

Bismarck, Germany, socialists. The whole idea was to get them old guys out of the workforce, Wayne, to make room for the young guys. Because in the mindset of them, there's only so many jobs to go around.

You see, socialists can't think at all. Bill Gates and Sam Walter would boggle his mind.

He said age 65 is retirement age for German males in 1890. Mark, do you know what life expectancy for German males was in 1890?

I think probably about an average of.

48, 67 or 68. Oh, good Lord, no less than 50. Yeah.

Even then. Yeah. He said age 70 is retirement age.

Never collect.

All right, 1916 comes along, we're halfway in the World War I. Bismarck's dead.

They reduced our retirement age to 65. Well, that's where Franklin D. Roosevelt got age 65 for retirement in the USA. Would you care to guess what, like seconds if American males was in 1937.

No. 61.

What is it now? 61.

82, 83. 83, 81.

Yeah, well, it's on up there. We'll say 79, 80 or thereabouts and we're still talking about 65. Good. Good Lord, there's no way.

It's a screwball crazy idea that should never come up again. From my background as an Austrian economist and as a Christian, that's just man trying to play God in the pagan sense of the word. And I Told you. Book of acts just tells you very plainly, God's a jealous God. He ain't going to put up that stuff. And so they all fail. Without question.

They make monkeys out of people.

All right.

I conjured up this scenario a number of years ago, at least 30. Do you all know who Neil Wartz is? B, double O, R, T, Z. Again, I do know. I found out from you. You do know who Russ Limbaugh is?

The original talk show host was.

Bortz. Neil Boyd. He goes back 34 years from now. He was on the radio for over 30 years. Atlanta, Georgia.

Now, the show was built around Neil Boyce, the principal. His sidekick was Royal Marshall, a black guy in his late or early 30s, I guess it was early 30s.

There was a lady, her name was Belinda. She was the producer of the show. Now you've seen all the three with the show.

I emailed this scenario to Neil three times before he finally did something about it. Now, don't pick on it. Talk shows like this get thousands of emails per day. But he finally got around to it one time, and by the grace of God, I was listening now, talking about love. Wow.

He did not use my name. You don't do that on talk show like this. But I could easily recognize it. Are you ready for it? You ready? Yeah. Brush yourself.

Three guys were born the same day. One was Caucasian, one was Hispanic, one was black.

They all had similar jobs during their entire lifetime.

They all paid maximum in the Social Security.

They all achieve retirement age.

They all drew their first check from retirement. Proceed.

Would you believe it? The next month the black guy died.

Are you aware that black guys do not live as long as Hispanics and white guys? And do you know those Japanese guys outlive us white guys almost 10 years? And you know, you pass all the laws you want to. You can't change that fact. This is not a function of man's laws. Man's not running things the way he thinks he is.

Well, would you believe it, Bob? The next month the black eyed widow dies.

How many times have y' all seen one spouse die? The survivor dies shortly thereafter.

You were talking about Westchester county there a while ago, Mark. I was doing a seminar there years ago in Westchester. And when we got to this point, I was talking about the black guy dying and his widow died shortly thereafter. And one of the guys spoke up and said, well, let me tell you about something that happened in this little village close by. He said they of the. The widow was at the funeral home shopping for coffee. Coffee from her husband. Who died the day before.

Mark? She died at the funeral home that.

Didn't she?

Yeah. Got a two for one deal.

That was all the money the black guy paid to Social Security. Please tell me.

No, it never existed.

It never existed.

It never existed. Did you know that.

You live in the usa? You live in the usa. Do you know when you make.

Payments? I didn't say contribution. They call it contributions. See, they change the meaning word confiscation. I go along with.

They. They change the meaning of what they call it contributions to Social Security. The check does not go to Social Security. Did you know that? Yes. That's part of huh. Operating budget. It goes to the U.S. treasury.

Steve. The money is spent immediately.

Worthless IOU or putting a file in a cave in West Virginia. Say we're going to collect it from you young guys. Welcome to the world.

There's no way they can work.

Scary.

Is this digestion. It's not money. It's a number. It's a number, that's all. It's a line number, that's all. It's an unfunded line, but people put in there. And here's the thing.

Paola.

I'm not picking on you guys in the home office. I love you.

We love you too.

He's worked his way down the deed.

Please believe me. But here at Mutual Trust in Chicago they always give me a copy of their magazine, Muddly Vanguard, right.

I had a fit of rage here just a few days ago.

Here's an agent that writes an article in their magazine explaining that Social Security is just another retirement plan.

Like a mature find. He said.

That guy is dangerous. Now you're giving financial advice.

If we caught one guy doing that, he wouldn't be part of it. Him and I. He'd get all his money back.

That's how this nonsense, this is how this noise proliferates out there.

All right, back to the story.

Would you believe it? The next month the Hispanic guy dies, Nate.

And the next month?

The next month the Pedro's widow dies. What happened to money Pedro paid in? Same thing. Well, I was so proud of old Neil Mortz. He had an element to it, Kevin, that I hadn't thought of.

He turns to his black compadre and he says raw. Do you know under the system we got going on in the USA today, the money you are paying into Social Security is going to prolong the system a few more years for the benefit of that little blue haired white lady.

That's true.

Royal with ballistic. And rightly so.

Now tell me that These guys like Bismarck and FDR and whoever.

Do you think they follow this possibility.

But yet they come up with these grandiose ideas that they can't possibly work. And you just stand there and take it. Who's the food? Them. Are you?

Be honest.

So I guess you didn't like Bernie Sanders. Big ideas, eh?

How did you know?

I didn't see all the Vote for Bernie signs when I came in.

Bad jokes. Bad jokes. Yeah, well, that's the sort of thing that goes on like that in this world. But again, you'll see with illustrations and so forth that you can preclude all this stuff by seceding from the system. Just simply don't play their game. Contract with other free people with great life insurance companies and you in this horrible environment, you could care less.

But you can't do it thinking the way they think and listening to them.

All right.

Where and when did the idea of insurance begin? Will, I didn't say life insurance.

Where and when did the idea of insurance begin?

Lloyd's of London.

Yeah, coffee shop in London, about 400 years ago.

Actually earlier than that.

I heard that. So the Roman soldiers. Yeah.

Mutual company where they funded it ahead of time. They kept the funds separate until one of them passed away and then they had a big celebration.

Yeah, but the general idea of insurance was property insurance. The general idea as we know it today was a coffee shop in London, England called Lloyd's. Businessmen sitting there drinking coffee day in, day out. It overlooked the harbor, saw ships coming and going. The high seas is a treacherous place. The loss of the ship and the cargo was a tragedy to the owners thereof. Businessmen had to put an idea. Curtis, you're one of the guys at the coffee shop. Mark, you one of them.

Richard, you're one of them. Okay.

You'Ve been plotting the going and coming these ships. You developed tables of probability whether the ship is going to make it back or not, right?

Sounds like something I do.

Yeah. Yeah, I figured you're that kind.

Is that a paralysis. Paralysis bridge or what?

Yeah, I'm desperate for something to do.

Okay.

Now, you knew the value of the cargo. Amar, you knew the value of the ship. Curtis.

The owners told you. You did a little third grade arithmetic with these probabilities and you came up with a premium.

Now you put a margin of profit that you expect to earn and then that fetch back to jic.

Just in case you were wrong. Little good place back, you charged a premium. Ship made it to a destination. What happened?

Got to keep the money in the kitty.

Yeah. Deal's over, deals over. The bargain was for the duration of that voyage. Now, term insurance, term insurance.

Okay, ship didn't make it, what happens?

Gotta pay some money.

Y' all gotta come up with how much. Okay, term insurance. All other forms of insurance that we know out there today is term insurance. If something happens during the time frame.

Now, if you study the archives of life insurance, you can find out that life insurance companies did not invent the idea of whole life insurance. Consumers did. Ralph Nader didn't invent consumerism. Good Lord.

Consumerism's always been there. Consumers, in effect, said, you guys don't have a duck and duck comparison. All these other things. If something happens, life is not if, it's when.

Cut that out.

Now in response, okay, we forgot something here. When life expectancy was only 50 years old, we'd say something like that. You got to take that pattern in which people die and squish it down like so. But the pattern remains the same just over that period of time. Now, we got 121 years in USA. Now you just stretch it out. But the pattern remains the same.

Over that period of time. Well, if you can in your mind blank out these numbers here, just look at the pattern. Now, let's say back there when life insurance first came along and it was term insurance. Let's say guy was right along in here and he wanted to buy life insurance, term insurance, pass the physical, pay the premium, didn't die, deal's over. You want to be insured next year, gotta pass this one.

Gotta pay a higher premium. Because this is probably gonna be the year compared with last year.

The premium got higher and higher. He quit.

Shortly thereafter. He died. Now, that does not take a rocket scientist figure out that would rip off.

The life insurance company says, well, you know, if we collect about six times as much premium as term insurance, put it to work in those places I showed you a while ago, that'll provide a level of premium all the way through here. And it'll pay a death benefit no matter when the guy dies. And of all things, they named it whole life insurance. I submit as a forester that is a gross misclassification of a product. You see, in forestry school we had all kind of courses in classification.

Dendrology, study of classification trees. It lasted all year long.

There were at least six other courses that involve classification. You learn that you classify things on the basis of the major characteristics, not incidentals.

Got that? Major characteristic. Any of you ever take an apple sitting on its bottom stems up here and cut that apple in half? In the equator. Y' all ever done that? Now, when you did that, Tyler, what did you see in the middle start? Why? Do you know?

It's where the core is.

Yeah, yeah. But do you know what else?

Why, it's a rose.

It's a rose family. Everything in the rose family has five petals. Five pistols, five stamens in the flower or multiples thereof.

That's what made it a rose. Get your hardwoods in North America manually, it's going to be about this thick. That much is rose family. Biggest one in them. Every one of them have that characteristic. You see, that's in the reproductive system of the plant family.

Well, isn't that a good place to start classifying things?

You ladies are different from us men. Have y' all noticed that.

Difference?

Isn't that a good place to start classifying?

But, you know, I learned that in California. Now, when you're applying for a job, applying for anything, and you have to fill all that paperwork, you know, name, rank, zero, number, that instead of male and female, they have five boxes you can choose from. Now.

Sad as it is.

Did you believe that?

Hey, listen, we just added the third box in our soul.

So it's like somebody looked up on the Internet here seminar not too long ago and said there's something like 46 different categories out there. Now.

That didn't make you feel proud to be alive.

Okay, where were we? Yeah. All right. Now, Stephen, when they collected much more premium and put it to work in those places I showed you, didn't that take upon itself much more characteristics of banking system than it did insurance? I rest my case. If they gave me the job of naming this new product correctly, I'd have called it a personal monetary system with a death benefit thrown in on the side just for the heck of it.

I demonstrated.

Yeah.

We'd have to have an acronym, wouldn't we?

In every illustration in my book, you notice I provide income at age 65 or 70, whatever. And in every one of them, I demonstrate that the death benefit at age 65 or 70 is the same thing at age 85, although you had all that income. Does Dave Ramsey notice this? Yeah.

Yeah. What a world we have.

Does this make sense to you?

Okay.

Yeah. All right. All my work life insurance. Life, life. I keep hearing this word, retirement, retirement, retirement. Everybody wants to talk about retirement.

Retirement plans and so forth, right?

Crucial investment information, retirement plans compared.

If you purchase $1,000 worth of Nortel stock one year ago, now it'll be worth $49.

And that's why it's old.

It doesn't exist anymore. Yeah.

If you bought Enron stock, you'd have $16 and a half left.

If you bought WorldCom, you'd have $5 left.

If you purchased Delta Airlines stock you at $49. Do you know what Delta stock stands for?

Didn't even leave the airport.

Doesn't even leave the airport. Yeah.

Others say don't expect luggage to arrive.

But if you got untied airlines.

You'd have nothing left.

Yeah, but if you'd purchased a thousand dollars beer one year ago, drank all the beer, turned your can into recycling, you'd have $214.

So based on the above, the best current investment advice, drink heavily in recycling.