No, Virginia, there is no trust fund

For most people, the whimsical belief in Santa Claus, the Easter Bunny or the Tooth Fairy is a harmless one that passes with maturity. Not so, with government entitlements.

Doubtless there are still people who think the government has a Social Security Trust Fund, with money socked away in Al Gore’s “lockbox” somewhere under Fort Knox. This quaint, childlike faith would be amusing, if it weren’t so dangerous.

You see, the government is already bankrupt. It just doesn’t call it that. And all those Boomers expecting to retire only on what they paid into Social Security are going to be in for a rude shock.

The promise of government largesse completely ruined the foundation of individual planning that made this country free. Instead of working to pay off our houses, we use them as ATMs. Instead of putting money away for old age and healthcare, we depend on an array of programs, from Social Security to the new Medicare prescription benefits. The end result is a zero savings rate while we party like it’s 1999, and expect Uncle Sam to put the blanket over us when we reach the rocking chair.

This isn’t freedom. It’s not even maturity. And when the coming wave of retirees find their government-“guaranteed” stockings are empty, it’ll be far worse than the child who finds out nobody’s home at the North Pole.

Jemison's Checklist for Financial Freedom:

Learn all the skills you can
Live on less than you make
Invest the rest wisely
Stay out of debt
Repeat for 30-40 years
Don’t count on Uncle Sam for a dime