UGH!! I just finished reading an article about Social Security running out a few years earlier than expected. In 2033, Social Security benefits will pay out only 75% of the scheduled amounts.
The article was quick to let those who have already retired know that they don’t need to worry. Their benefits will remain at 100%. But he went on to say, “If you’re under age 40, start worrying.” Really?! The only reason you should be worried about Social InSecurity is if it is your hope and only plan for retirement!
By the way, that’s a horrible plan. Even President Roosevelt felt so. From the SSA website: Social Security was never meant to be the only source of income for people when they retire.
For the love, please have a plan! Don’t put your trust in the government to take care of you when you get older. I can tell you. The government’s way of handling someone I loved wasn’t pretty.
Instead, take some easy steps to “secure” your future:
- Get out of debt – Over and over, I tell people that debt robs them of their options. When you have all of your income and no debt, you can build wealth and build it faster. How do you do this? Get on a budget that works and live on less than you make. That’s pretty simple. The hard part is the accountability.
- Invest already! – Investing isn’t as scary as it sounds. Once you are debt-free but your mortgage, start putting 15% away in a 401K and/or Roth IRA. Don’t invest in single stocks or gold. For right now, only focus on Mutual Funds.
- Insure yourself – What you don’t want to happen is getting to retirement and something catastrophic wipes out all of your investments. Instead, make sure you have Term Life Insurance if someone depends on your income. Also get Long-Term Disability Insurance in case something happens to you and you can’t work, or you have outrageous medical bills. It’s also a good idea to get LTDI on parents over 60. It doesn’t cost that much.
These are just a few of the things you can do to keep from worrying about Social Security, as some would have you do. Now, without making this look like a total promotion instead of me wanting to help, I didn’t advertise all the ways to do it. Instead, you can click on the bullet points to see how. Or just ask a question in the comments.
Question: What are you doing to ensure your future?