It is 2014 and things are good. Unless you are talking about social security. Today we are going to hit on some recent numbers that were given by the Social Security Trustees. These Social Security Trustess release every year a report about the long-term outlook for these programs. What came from this report? The following is our long-term outlook for social security:
Social Security Retirement Benefits will be depleted by 2033. Currently Social security provides benefits to 59 million people. On average, about 10,00 baby boomers become eligible each day for social security benefits.
Yikes, everyone needs to run for the hills because social security will be gone by 2033!!! While it really isn't as alarming as my last sentence pretends there is still worry. The thing to remember is that this isn't something we haven't known about. Last year we had the same sentiment about social security. What is the rememdy? While there is a few things that can be done, like: Temporarily reallocate some payroll tax revenue to diasbility benefits from the surplus built up for retirement benefits. This solution, endorsed by Mr. Lew could probably be one of the easiest and most affective way to get the results we want. While this is one option among many ways to help ease the burden Social Security is feeling and will feel my gut tells me to not rely on the government or its programs.
We do have to follow laws and regulations when it comes to retirement and we only have certain accounts that the government has approved as retirement accounts, like an IRA or 401k. We are even told how much money we can contribute to these retirement accounts. While we must follow these regulations and laws the truth is, if you start early enough and max out contributions you should have enough money to provide for your whole retirement. Why worry about the government and if they are going to have enough money for you? Why not rely on yourself? If you rely on others to provide for your retirement the likelihood is that you won't have enough for what you need and want.
My solution to this is to start today and create your own retirement. First things first, if you don't know enough about what you need for retirement then read the following comprehensive retirement guide. Second, follow the steps and recommendations in the guide. If you just do those two steps you will be in a lot better spot for your retirement, especially if you didn't have anything set up in the first place.
How to truly take control of your retirement is to self direct your retirement with a self directed IRA or self directed 401k. These two accounts allow you to invest your retirement how you want. Of course you can still have a regular IRA that is invested into stocks and bonds, but diversifying from those stocks and bonds by investing in real estate, gold or even private placements is done through a self directed IRA or 401k.
While I hope that social security is here for more than 30+ years so that I can benefit from it, I am not going to rely on it. I am going to take control of my own retirement by maximizing my retirement account benefits and diversifying my investments.
What are you doing to ensure you have the best retirement possible?
Author: Nick Barker