Broker Check

Planning With(out) Social Security

| October 23, 2016
Share |
Social Security

With the United States Presidential Election just around the corner, there is one area of concern that both candidates need to address — Social Security.

The first question I commonly hear regarding Social Security (SS) is, "Is it going to last?" The most honest answer is, I don’t know. Politicians and experts speculate as to what can be done to save the system, but they can’t say for certain what can fix it and when it can be implemented.

The two “solutions” that have been proposed are: raising the SS full retirement age and decreasing the monthly benefit. I use quotations around solutions because this is ultimately a speculation. With that being said, these two “solutions” would not affect people in or near retirement. If they were to be implemented, they would be done so in a tiered fashion. This means that the retirement age and the benefit amount would increase and decrease a little bit over a specified period, most likely years.

These “solutions” would most likely not be well received by the majority of the country. Most of these people have paid into the system and they deserve to be given what they have put into it. They have a right to be upset, but something needs to be done. If no plan is put in place, SS will disappear and no one will get anything.

Keeping in mind the unsound status of  Social Security, we must save for our retirement. For those that see retirement as another world away, there are many things that can be done to make the golden years stress-free instead of worrying about every penny spent. The most important of these would be budgeting — spending what is necessary and not living beyond your means. Some other things, in no particular order, include investing in retirement accounts, partaking in employer sponsored plans, buying different kinds of insurance to avoid large losses, etc. Thankfully, we have a lot of different plans, insurances, and investment vehicles at our disposal.

In the next couple months, I will elaborate and explain everything that can be used to help with retirement planning and how those things work. Retirement could be the best years of your life, but with the fate of Social Security hanging in the balance, planning for retirement can seem overwhelming. Keep an eye out for my next blog post that will go into the different kinds of plans and investment vehicles that can be used.

Share |