I’ve included just key non-political excerpts that apply to you and I and our kids. Bold emphasis = mine
The End of Social Security as We Know ItBy Ian Mathias Baltimore, Maryland for The Daily Reckoning 09.20.10
On September 30, America will quietly begin a generational shift. This will be the final day of the government’s fiscal year 2010, and consequentially, a very notable day for Social Security…..Though there will be some debate over when SS started losing money in 2010….and moved a future Social Security crisis into the present tense.
76 million Americans were born between 1946-1964, the so-called baby boomers. On January 1, 2011, the oldest member of this demographic – the largest America has ever known – will turn 65. At present they make up about a third of the entire US workforce. Taking their place will be Generation X, about 46 million people strong. ….that’s 30 million fewer contributors to the Social Security fund and tens of millions of new beneficiaries.
And there’s a whole other “problem” with current or soon-to-be Social Security beneficiaries: They’ll likely live much longer (and expensive) lives than their parents.
In 1935 the average life expectancy was 65…Today, the average American will live to around 77… and we are on the verge of generational medical breakthroughs that could expand our life expectancies into the triple digits. Think “ageLOC”
So what happens when the largest demographic America has ever known taps into a fund already in deficit? And lives longer than expected?…..this is cold hard, simple, math…..the reality of the moment is this: You and I must…
* Prepare to pay more Social Security taxes
* Prepare to receive less Social Security benefits
What’s your exit strategy? Can you “reasonably” expect any of these – or even any combination of these – to provide for you and your family? Depends upon if you’re planning to live to 77… or longer?
Social Security – NOT
IRA – NOT – just ask anybody who had one prior to the market melt down what their account value is today. For the people I personally know – it’s about half.
Savings – even if you have them…at what interest rate?
Work Longer – at what job, for what amount and at what cost to you, your health and family?
Take 2/3 of your current monthly bills and divide that number into your savings and IRA accts combined. How many months or years will that last you? Again, are you planning to live to age 77 or longer? Now that’s just considering you and your spouse. What about college, weddings and an occasional emergency?
Drove me crazy thinking about it too….for many years. Most ignore it until it’s too late.
Now what if you were to overcome any fear, or better yet use your fear as fuel, Find a coach or mentor that will assist you in developing additional income streams, either from starting your own business, acquiring rental properties, etc, and focus 1 or more hours per day over the next 2-5 years, and create a true residual, ongoing income stream of $1,2,3 thousand …or more… per month? How would that impact your savings, IRA and retirement years??