187 What Should We Do When We Run Out of Other People’s Money?

bad math

“The problem with socialism is that you eventually run out of other people's money.”

Margaret Thatcher

Not much that needs to be added to that quote. We are seeing what happens when the government devises plans that use flawed logic and a lack of mathematical fact.

Is it really a big surprise that the health care exchanges organized under the CO-OP program are failing? I'm pretty sure that every insurance expert or semi-expert in the known universe said it wouldn't work.

Turns out that you can't put a bunch of sick people together in a plan and have it remain solvent. There have to be healthy people in there too (paying premiums) to balance the risk. This is insurance 101.

But that's not the only thing we're discussing today, here's a complete rundown:

Another Co-Op set to shutdown

Brokercheck links get approved

What's best way to get true financial planning services?

A brief reminder…the Financial Procast will be on hiatus for the next two weeks. We plan to make an announcement about the future of the show when we come back in a few weeks.

In the meantime, you can go back and listen to some shows in the archives if you just can't imagine life without listening to us. Here are some of the most popular episodes:

Episode 40: Why Whole Life Insurance Sucks

Episode 157: What it Takes to Become a 401k Millionaire

Episode 25: An Equal Opportunity Delusion

Episode 174: Predictions with Exactitude

And if you'd like to speak with us directly, use the contact form. We're always happy to help.


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