Social Security How I Will Plan for This
Will it be there or will it not be there when I retire? That is the million dollar question. And, by the time that I retire some 30 years from now, the total stream of the social security benefits could total a cool million dollars! Of course, that is assuming that it will still exist in its current form. Quite doubtful!
The president, government and the public have vast opinions on how best to handle the issue. The only solution is to raise taxes and/or reduce benefits. The exact amount of each is a matter of personal opinion. But, no amount of shell game (such as private accounts) is going to solve the problem. It may relieve the symptom. But it would not cure the disease.
Given that retirement is 30 years away, what is the best strategy to plan for this? The old saying, Prepare for the worst and hope for the best applies here. When I do my calculations for retirement, I will make the assumption that there will be no social security benefits. Am I being overly conservative? Yes. Better safe the sorry.
The biggest con is that I may have to save something like an extra $2000 a year to cover the potential income shortfall. I could potentially end up in a situation where I saved an extra $2000 a year for nothing. I am sure that we could all figure out what to do with an extra $2000 a year.
Two words to counter the con, early retirement. Thats right. If I save an extra $2000 per year, I would have the chance to retire a few years earlier than I would otherwise have been able to.
Here is an article from CBS Marketwatch on yet another seasonal investing idea, "Congressional Effect". Congressional Effect The stock market dislikes uncertainty. Whether it is a company about to report earnings, a worldly event about to happen half-way around the world, or the government about ... Read
Ever thought about joining one of those members only credit unions? Well, you just may be able to! If you do not already know, credit union customers enjoy more and better benefits than bank customers. The general reason is that credit unions are non-profit entities ... Read
Well, if you have any children, this may be a great savings vehicle for them. Affinity Bank is offering a 10% APY savings account for children up to 16 years of age. FINE DETAILS. The 10% APY rate is good on the first $500. Anything ... Read
Another way to "prepare for the worst" is to view Social Security deductions as a tax, and, as such, expect never to see them again. Social Security has _no_ place in my retirement plan right now (I'm 33).
