medicare today

medicare today

Newman: Saving for Medicare today is like wearing a sweater in August to save warmth for January

3w ago
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"In Washington, there is this great focus on the cumulative deficit over ten years, people talk about because they are afraid of building up the national debt. And they say 'Well, we've got this program and how much it is going to cost over ten years.' And they are missing the point. They are trying to get prepared for the future when Medicare for example is going to be a much higher expense. But that's a little bit like saying 'Well, we expect it's going to be cold in January and in order to be prepared for that we are going to start wearing our sweaters now.' Okay? Wearing them in August. It doesn't make any sense because it's not your average body warmth that matters. What matters is your body warmth at the time when things go on. To plan ahead for ten years to use the cumulative amount of money over that period of time is simply the wrong measure and people are just focused on the wrong thing." - Frank Newman, 27:35 http://www.livestream.com/clsit/video?clipId=pla_ca112caf-5338-4f55-bd9c-1dd717a9c3db http://www.modernmoneynetwork.org/frank-newman-conversation.html