If it ain’t broke don’t fix it? We baby boomers, gen x, millennials, seniors and retirees alike have all heard for decades that our beloved tried and true social security system is insolvent… virtually bankrupt. At nearly any local watering hole in Dallas or Ft. Worth, often a conversation about the nearing political races (and the debates between Donald Trump versus the world…); a discussion about the viability of social security inevitably erupts. And rightfully so; we 78 million baby boomers have paid the most into social security and now face the question of;
Will social security be able to pay us what was promised?
Up to now, our government has always come through and figured out a way to keep all the mouths at their proverbial trough fat and happy. But at a cost that now threatens our lifestyles and potentially kills the eternal “American Dream,” especially for generation x. and millennials.
We now have a staggering $18.4 trillion and growing in outstanding US Government debt and a looming unavoidable increase in our national debt ceiling. Thus, our debt is going even higher! And when adding to that debt, the amount that has already been promised and allegedly committed to social security recipients for their retirement, (which is approximately $24 trillion), well… “Houston we have a problem…”
$43 trillion owed to Americans and foreign nations. Hmmm, the writer Michael Ham, wonders who will be paid first? Let’s tackle the national debt issue before we deal with social security’s shortfall.
Without increasing the debt ceiling, as of today the amount that each and every US Citizen would be asked to pay to payoff our debt is $57,225. Since many of our citizens are children, or people who have no means to pay, lets only ask each taxpayer to foot their portion of this debt. In this example, each of us who file a tax return would be asked to pay just $154,512.
Well, that is not likely happen so let’s table that and get back to social security’s dilemma. The concept of social security in America was born in the desperate years of the Great Depression. President Franklin D. Roosevelt saw the concept of government-administered “social security” as a financial safety net for the elderly, widows, and orphans, groups that suffered great financial and societal upheaval at that time.
Also, in 1935 when the Federal Insurance Contribution Act (FICA) was enacted, the average life expectancy of an American was 63 years. And so, full retirement benefits from social security would begin two years later, at age 65.
Lastly in 1935, there were nearly 46 workers contributing to social security for each social security recipient. After World War II and the baby boomers were born, there were about 42 workers per social security recipient. But then we experienced and “birth dearth” along with dramatically increased lifespans.
Fast forward to 2010 and we had less than 3 workers per each social security recipient and each of those recipients are living well into their 80’s on average. The experts who calculate such things estimate that by 2030, there will be only 2 workers per each social security benefit recipient. Yet social security still pays full benefits at age 66 or 67, three years earlier than life expectancy averages.
Thus, the system got squeezed hard from both ends.
Ironically, the very first recipient of monthly social security retirement benefits was one Ida May Fuller. She was born on a farm in Ludlow, Vermont in 1874. She worked as a legal secretary in Ludlow for most of her career, and after three years of paying Social Security payroll taxes, she retired in 1939 at the age of sixty-five. According to the Ida May Fuller’ Social Security Windfall (SSA)’s website, the total amount of Ida May’s contribution to Social Security was $24.75. Ida May lived a long life and when she passed away in 1975 at the ripe old age of 100 years, she had received a total of $22,888.92 in monthly payments from Social Security. The was definitely her best investment!
This should have been an immediate red flag for the administration…
first Social Security recipient out of the box pays in $24 and gets back nearly $23,000?!
Our U.S. government may not be able to solve this problem with smoke and mirrors this time. It might actually “be different” this time. There is no time like the present to start investigating alternative methods of insuring (literally) your financial security. Learn how to take advantage of your 401k max contributions and the value of using an annuity as a pension for retirement. Baby Boomers and seniors don’t deserve procrastination and partisan gotcha fraud politics. We need and we demand real action and real results.
Social security is nothing more than a life annuity. Annuities have literally been around since the Roman Empire and Annuities. Common sense should lead us to believe that any investment plan that can last as long as annuities have, must be a dang good idea.
Why do we save and invest on hard-earned money in the first place?
Ideally we aim to build a pile of cash and then at some point create an income stream from that investment pile and use the cash flow to pay our expenses when we can’t or choose to no longer work. We had the opportunity to invest in a financial plan and stuff our IRA and make 401k max contributions up to the legal limit as instructed by the best local investment advisor money could buy. But life happened. Kids and their education cost a fortune… earning a pension in corporate America today is impossible for most. My Money Track has the help and advice you really need.
The answer is not amassing wealth it is ensuring maximum monthly cash flow that will last for your entire life.
There is a much simpler and easily obtainable way to get your best maximum lifetime monthly income checks by wisely utilizing index annuities, fixed annuities, hybrid annuities, immediate annuities and max cash value life insurance. You don not need $1.5 million dollars saved to receive $60,000 per year for life. (Using the rule of thumb 4% withdrawal rate on $1.5 million = $60,000)
You can structure maximum monthly cash flow for yourself and your spouse and still leave your children and grandchildren with a sizable and tax-free inheritance, if you so desire. Do not sell yourself short.
Fact is, social security is bankrupt and it’s just a matter of time before they cannot and will not be able to fulfill their promise of full payment.
They clearly admit this on the front page, second column of your annual social security benefit statement. We recommend you not be the last in line to board the life raft of the sinking social security ship. At the very least try on your financial life jacket. You owe it to yourself and family to research sound legal and viable alternatives that will contractually guarantee your lifetime monthly income; with your home State’s full faith and credit standing behind that guarantee, up to $250,000 per contract.
Look, insurance and modern annuities today are not your fathers “Buick”. They have become one of the most sophisticated, wise and widely implemented investment vehicle. (see what we did there.. Buick, vehicle?) Wall Street and its fat cats want to continue to pour you the Kool-Aid and rely upon uninsured guaranteed retirement plans because that is how they carve out their pound of fee flesh. Wise up. You do not need to be a member in your local MENSA chapter to figure this one out. We provide education and information on the best annuities and how to set up your own tax free retirement. You’ll be ecstatic that you took the time to contact Michael Ham and My Money Track or the local best advice in your area. You do not need to be wealthy to get the best advice and best investment advisor. Even if you reside outside our local Dallas Fort Worth area, Get your Money straight, Get your Budget set and Get your Life back on Track. This is exactly what we do.