Should you count on social security?
I’m officially part of Generation X and with my expected retirement timetable it seems unlikely that Social security will probably be around for me the way it is for grandparents, or even my parents. If the program still exists (a big IF) then it will almost certainly be in a reduced form.
Smart financial managers in my generation don’t even count Social Security in their retirement equations. Why would you? It’s a promise from a government that loves to break its promises. Yes, its our cash and we deserve to get it back, but when is life ever fair?
When I do my retirement spreadsheet calculations the box for social security is always just considered fun funds. I will invest now as though that box are going to be forever blank. If I happen to get some thing from Uncle Sam then it’s a bonus, cash that can be utilized for travel, gifts for my future grandkids, or extra nights out on the town. It’s not a thing that I will pay the mortgage with. It’s never smart to count on a thing before you actually have it. Nothing is guaranteed except death and taxes. Social security is basically a tax the government owes us, so I guess even taxes aren’t fully guaranteed for everyone.
Investment brokers love to give you sample calculations for what your retirement fund could look like with so significantly invested and so much return. I remember when mine told me to expect 10% return and I forced him to decrease it to 7% for his calculations. Even that might be too high. They don’t like to tell you about market crashes such as what 2008-09 saw. The world is a scary place and you must start early to safeguard your own future. It’s not the government’s responsibility to be sure you have a cushy retirement.
Probably the only way to save social security is to raise taxes. No one genuinely wants that, but without it the program would collapse and there’ll be a riot in this country. Millions of men and women are forced to count on that dollars due to the fact they were in no way taught any differently and trusted that it would be there. Just like thousands of individuals counted on huge perks and pensions from the auto manufacturers and now all that dollars is gone. Nothing is forever. If you’re in your 20s and 30s your greatest bet is to forget about the government checks and do what you can to safeguard yourself on your own terms. Everything else must be a bonus.
In regards to the Author
The writer is multi-interested in a variety of things including double umbrella jogging strollers since she has kids and also diaper bag essentials and fireplace screens.
This entry was posted on Friday, February 19th, 2010 at 4:53 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.