Down through all of history, mankind has indulged in some pretty stupid ideas and it seems to take quite a number of years before one of them finally runs its course and collapses.
One that has the world in its grip at present is the idea of “retirement” or more precisely “The Pension Idea.” Read the Bible carefully and you will find no such reference to “…and so, Moses retired and lived happily after.” I can find no reference to the concept throughout history until the time of Germany’s Bismarck in the 1890s.
The whole idea was to get the older folks out of the work force in order to make room for the younger folks — because “there are not all that many jobs that are available.” The idea of creativity was seemingly beyond their comprehension. Bill Gates and Sam Walton would have boggled their minds!
Pensions in America as we know them today began during World War II. Before that time the idea was practically non-existent. Everything was “frozen” during the war. When you went to buy gasoline it didn’t matter how much money you had. The limiting factor was the A, B, or C sticker on the windshield of your car. Some government bureaucrat determined how much you “needed.” When the housewife went to buy groceries, there were “ration points” that determined how much meat she could buy, how much of the other staples of life, etc, etc.” A Socialist’s paradise!
The same idea applied to wages — they were “frozen”. Under such an environment, how can you give someone a pay raise without “giving a pay raise”? Benefits, of course!! This was also a function of the IRS Code, which began in 1913.
The monster has accelerated and now the inevitable results are beginning to manifest themselves. Pension plans and all other such “IRS qualified plans” are self-destructing.
Not long after WWII, in 1950, Paul Poirot of the Foundation for Economic Education wrote a little book, THE PENSION IDEA, in which he demonstrated that the idea would never work. His prophecy is now apparent. The publication has been out of print for many years. I think it is so important for everyone to understand that Infinite Banking Concepts got permission from FEE to re-publish the booklet and we now offer it for sale on this website.
I urge financial services agents to buy this book in quantity and see that your clients read it. They need to know its message.
One caveat — when you get to the matter of life insurance in Paul’s book, please bear in mind that he had limited knowledge of how dividend-paying life insurance works, nor was there any knowledge of The Infinite Banking Concept in 1950!