RE: A Different Approach to Social Security

[Michael Jones <powderfinger99@yahoo.com>]

<<<<
Wealth is defined as assets controlled, not income. 
>>>>

The few posts about the difference between wealth and income
are right on the mark.

I have thought about why the government usually equates wealthy
people with high income earners. The politicians will reflect
the the opinions of the population when it comes to issues,
so I wouldn't blame the politicians.

Since relatively few people have investments outside of their homes,
one could conclude that the average person hasn't fully learned
the concept of wealth building. I believe that everyone can learn
it. I didn't understand it until I read up on it.

This leads me to believe that the average person views money in
a "short term" way. Short term thinkers see money like water.
All the income that comes in immediately goes out to be spent.
(Similar to the government). Under this view, the people with
larger income streams are "wealthier", because the high income
can support a larger level of consumption.

It takes a certain amount of self discipline and understanding 
to become a long term thinker. The rewards of long term thinking
are great. Holding assets which create and compound wealth can 
offer a significantly higher future level of living. If you
are willing to be patient.

Unfortunately, I see many short term thinkers on this board 
and even among so-called experts who testify to Congress. One 
expert who testified to Congress comes to mind. She discredited
equity investments because they might only return about 2% more
than a similar investment in government bonds. A short term thinker
wouldn't see 2% as anything significant. Compound 2% over 40 
years, and it becomes a factor of 2.20. The difference would 
increase a retiree's monthly pension by 120%.

Michael