Social Security is the primary or sole source of income for over 90% of America's elderly. When FDR signed Social Security into law in the mid 1930s there were roughly seven workers for every person drawing from the fund. That has been turned upside down and will only get worse, dramatically worse, when the bulk of the Baby Boomer generation (those born in the roughly two decades after WWII) begin to collect their Social Security benefits. The plan was initially conceived to be a safety net for seniors to avoid the financial destitution of the Great Depression. It was never intended to meet all the financial needs of America's elderly.
Congress has consistently failed to enact any kind of meaningful, long-term reform that will preserve Social Security for future generations. Private economists, and a few honest public officials, have been blunt in telling Americans the days of Social Security are numbered. Exactly when it will go bust is the subject of many varied opinions. But bust it will surely go. Even the government's own projections call for insolvency by mid-century. Analysts are calling for either huge and immediate reductions in benefits paid out, or large increases in contributions - or both. Fed Chairman Alan Greenspan warned us back in 2004. Long story short, Social Security is not going to be there for us like it was for our parents.
The resources that we, as a nation, are spending on military operations in Iraq and Afghanistan plus the recent stimulus package and corporate bailouts are putting a huge strain on the federal budget. Add to this the fact that nearly 80 million Americans will soon be looking to collect both Social Security and Medicare benefits. What do you think is going to happen? Will we have the resources necessary to meet those obligations? We're already running record budget deficits. We've become the world's largest debtor nation. We import far more than we export: our trade deficit is enormous. Many Americans are up to their eyeballs in consumer debt. Mortgage foreclosures are at record highs and increasing because home buyers got into adjustable rate mortgages that they can no longer afford to pay. Over the long haul -the next few decades - the value of the US dollar can only be headed in one direction: down.
At the risk of painting a doomsday scenario...the point is simply this: We are all going to have to assume a greater degree of responsibility for our own retirement income..because we can no longer count on the government to do it for us. Even though most of us have paid into these funds - Soc Sec and Medicare - during most of our working lives we need to face up to the reality that these benefits are not going to be there for us as they were for earlier generations.
So what's the solution? If you could put in two to four years effort, just part-time, and develop an income that would pay you several thousand dollars a month...for decades...would that be worth it? If you were going to begin such an endeavor, when would be the best time to start? With so many people on the verge of retirement what are the growth industries in the years ahead? Do you think health care might be one of them?
Friday, March 27, 2009
Social Security: What Happens When It Goes Bust?
by:
yestom
time:
12:32 PM
label: others
Subscribe to:
Post Comments (Atom)
Subscribe
Labels
- banking (1)
- Financial ETFs (8)
- Gold buffalo coin (12)
- Gold investment (44)
- Gold Investment Guide (17)
- Investment News (6)
- mexico gold coin (10)
- others (47)
- Retirement Planning (30)
- South African Gold Krugerrand (13)
- Stocks and Bonds (40)
- Trading Results (1)
- Wealth Building (35)
Followers
Blog Archive
-
▼
2009
(207)
-
▼
March
(180)
- 1930s Volatility is Here
- 5 Stock Tips to becoming a Successful Trader
- What is an ETF?
- 3 x ETFs, the Latest hit
- Inverse ETFs, Should You?
- What are ETFs
- What is a good investment
- Reasons For Selling Options
- Signs of a bottom
- Zacks Beats The Major Brokers
- Are Chipmakers Finally Stabilizing
- Real Estate Investing - The Benefits from an Exper...
- TOP 10 INVESTMENT SCAMS IN WASHINGTON
- Current Economic Recession Strategies
- Rules for Investing During Volatile Times
- Gold vs. Stocks: Worst Yet to Come
- Inflation? Deflation? Buy Gold
- Gold: Reality vs. Liquidity
- Inflationary Fire Insurance
- Euro Collapse, Gold Surge
- Can China Rescue the World
- 5-Figure Gold & Central Bank Sales
- Gold vs. Mervyn King's "Queasing"
- Japan Inflates, Gold Jumps
- India's Latest Gold ETF
- Saving & Spending
- The Long-Run Value of Gold
- What are the best ways to buy gold
- Gold Bullion
- Gold Bullion Investment: Why buy gold today
- Krugerrand Gold Coins
- Mexico 50 Peso Gold Coin
- Tips for Gold Investment
- Investing in Bullion and Collectible Gold Coins
- Guidelines to Buy Your First Ounce of Gold
- Buy Mexican 50 Peso Gold Coin as Safe Investment
- Mexican Gold Coins for Gold Investors
- Types of Mexico Gold Coin
- What You Need to Know Before Buying the Gold 50 Pe...
- A Brief History of Mexican Coins
- How to Buy Cheap Gold 50 Pesos Mexico Coin
- Why Buy Mexican 50 Peso Gold Coin Now?
- Tips of Collecting Mexican Old Coins
- Mexican Coin Collecting Guide
- Tips of Collecting Silver Buffalo Coin
- American Buffalo Coin Buying Guide
- What’s Buffalo Nickel Value Today?
- Why You Should Buy Proof Gold Buffalo Now
- History of American Gold Buffalo Coin
- Types of American Buffalo Gold Coin
- Why You Should Buy American Gold Buffalo Coins
- Buy $50 Gold Buffalo as A Safe Investment
- What You Need to Know Before Buying Buffalo 2006 G...
- 2001 Silver Buffalo Buying Guide
- How to Buy Gold American Buffalo Coin Online Safely
- United States Mint Updates Pricing for American Bu...
- Retiring For Fun And Profit
- With Retirement Comes a Financial "Risk Zone"
- Pensions- what can you expect at retirement
- 4 Easy Ways to Reduce College Costs and Supercharg...
- Different Types of Investments
- Invest In Your Retirement With A Internet Home Bus...
- What Makes the FOREX Market Different From the Sto...
- FOREX - Foreign Exchange Market
- Forex Trading - Should You Invest
- Stock Day Trading Tips 2009 > How to Pick Good Sto...
- A look at Elliott Wave Theory
- Learn the Best Solution for Retiring Wealthy
- Put options Vs Short ETFs
- How to Use Covered Call Options For Additional Saf...
- Cutting losses on Stock Options
- How To Invest In This Economy
- 3 Easy Ways to Go Short with Call Options
- The Media's Effect on the Stock Market
- Buying Options With a Plan
- Stock Market Trading: What You Need To Know
- Timing the Market for Profitable Stock Investment
- Bullet Advisory Indian Stocks- DOW NASDAQ U.S.Mark...
- Monthly Compounding Better Than Annual? Not Always
- Successfully Trading Silver Futures
- Your Financial Future Is In Your Hands
- Preparing For One's Retirement
- Enjoy and Make Money at the Same Time
- Cash Earning Strategies
- Profit From Dividends
- Picking the Right Wealth Consultant
- Be Wary of "Blue Chip" Penny Stocks
- Creating a Life After Retirement
- Retirement and Business Opportunities
- Home Business for Retirees
- Make Money Even If You Have Retired
- Clearing Debts before Retirement
- Working From Home: A Simple Way to Stay a Producti...
- Earning Opportunities For Retirees
- LOOKING FOR THE BEST PENSION PLAN
- Buying a Business
- What Businesses Can You Buy
- Government announcement on pension minimums
- Secrets Real Estate Provides Hope in the Economic ...
- Can I afford to retire
-
▼
March
(180)
0 commets:
Post a Comment