STRATEGIES FOR DEALING WITH SOCIAL SECURITY REDUCTIONS Secure Your Future for Peak 65
• DIVIDEND STOCKS OVER BONDS: Dividend equities are more tenacious in the face of inflation than bonds, as some companies adjust their dividends to compensate for it. • ANNUITIES: Annuities, generally paid by life insurance companies, can bolster your income during the impending retirement crisis. There are many types of annuities, so it’s best to speak to a professional before investing. • MAKE A TAX PLAN: Tax breaks from 2017 expire in 2024 and 2025, so planning ahead is essential. These benefits may be extended but now is the best time to start saving. While retirees may face uncertain monthly payments from Social Security, it’s possible to supplement income through other avenues. Even in a volatile market, you can make wise investment choices to help weather Social Security issues. The best thing to do is speak with a professional about your retirement goals and options.
More people have reached 65 this year than ever before. And by 2030, 1 in 5 Americans will be at retirement age. This large influx of retirees will substantially impact many Americans, not just boomers and Gen Xers. When Social Security was first implemented, the average life expectancy was 20 years lower than it is now, and Social Security simply doesn’t have enough funding to cover the “silver tsunami” of baby boomers now retiring. The Social Security Administration estimates that the fund will pay 100% of benefits until 2033. Anything beyond 2033 is uncertain, as policymakers have yet to introduce a comprehensive plan. Moreover, the number of contributors to the program — younger workers — isn’t keeping up with the increasing numbers of new Social Security beneficiaries. No matter how Congress proposes to shore up the system, it will have challenges. With this situation in mind, retirees need long-term financial strategies going forward. The best way to surmount these challenges is through clever investment.
Never Too Old to Learn Something New
PROFOUND STATEMENT
I talk to a lot of people, and I love listening to people talk because I was taught that God gave you two ears and one mouth for a reason, and that is because you can’t learn anything with your mouth open. Now rest assured I am a talker, too. That’s probably why I am in sales and enjoy people. And the great thing about talking with a lot of people is you never know what is going to come out of their mouths. I have learned as time has passed and I have gotten older that the filter between my brain and my mouth has almost completely disappeared. You know when you are thinking something, and you know you should keep the thought to yourself, but instead your mouth opens and out comes the thing you were thinking that you were not supposed to say? That is what I am talking about: The filter between your brain and mouth has disintegrated to almost nothing. I have also learned that just when I don’t think I can be shocked by something someone has done or said, I end up being shocked. It is like I never thought of that, and that is about the dumbest thing I have ever heard or seen — which proves we are never too old to learn something. But I was talking with one of my clients the other day, and he said something I would qualify as “profound.” Because when something is profound, it is considered to be of deep thought and insightful. It also made me stop and think.
Not to digress, but Albert Einstein made a profound statement about people and thinking. He said there are three kinds of people who think: those who think, those who think they think, and those who would rather die than think. The profound statement my friend shared with me was, “It is better to want what you don’t have than to have what you don’t want.” It makes you think, doesn’t it? I would be curious to hear what you think of this profound statement. Let me know at Terry@TerryMonroe.com .
–Terry Monroe
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