Mark D. Goldstein, CFP®
Certified Financial Planner
NEW MEXICO OFFICE
Pueblo Plaza Executive Suites
1100 S. Main, Suite 10
Las Cruces, NM 88005
Intelligent Office Complex
7362 Remcon Circle
El Paso, TX 79912
3701 Algonquin, Suite 150
Rolling Meadows, IL 60008
(877) 442-0698 Toll-Free
"Guaranteed SAFE-Money Solutions for a Successful Retirement!"
The writing's on the wall. A majority of Baby Boomers will live at or below the poverty level in retirement.
The numbers say it all...
Back in 1945, there were 42 people working for every person receiving Social Security benefits. We currently have only 2.9 covered workers for every recipient, and by 2030 (just 12 years away!), the ratio will drop 2.1 workers per beneficiary.
In 1975, when I was a young lad starting out in business, it was a seven-to-one ratio... and even that was considered scary!
According to a recent article in The Wall Street Journal, by 2023 (just five years from now!) we’ll reach what’s known as “critical mass” and our national debt… which is quickly approaching an unfathomable $22 trillion, will E-X-P-L-O-D-E under the enormous weight of the huge number of retired Americans dependent upon a dysfunctional retirement system.
Unless something drastic and meaningful is done, it will bankrupt our country.
Over the last 30 years, the number of retired Americans has grown from 18% to 22% of our population. By 2040 (a mere 22 years away) we're looking at around 37%... a jaw-dropping 68% increase!
Clearly, the massive baby boom of the late 40s, 50s and early 60s has turned into a colossal debt explosion.
Houston, we have a problem. A single-income household receives from Social Security about six times what they paid into it. A two-income household takes in about three to four times what they paid in. And, by the way, that doesn’t include the costs of Medicare and Medicaid (they're in much worse shape)!
Friends, I don't care what your political affiliation happens to be (just as long as you're fiscally conservative, like me!), we’re talking about unsustainable numbers here.
So, if you’re still hoping to have anything similar to the lifestyle you enjoy today, you might want to act as soon as possible. Like NOW, for instance.
Regardless of how the market’s been performing since the crash of '08 and whether or not you've finally recovered all the money you lost (that’s a whole other topic for future analysis), you ought to reduce the risk in your portfolio and shift to a more stable investing style... one with guaranteed safety of principal that locks in and protects all previously credited gains, minimizes fluctuations and eliminates the possibility of negative years... allowing your money to grow at a more stable and predictable rate... and GUARANTEES an inflation-protected income that you'll never outlive.
Also, if you've done well, it wouldn’t be a bad idea to take a serious look at how you’re funding your retirement and calculate how much you’ll need if Social Security benefits are cut by 25% to 50%. It may seem unlikely now, but if means testing is implemented on those with real assets… not just your investments or cash, but all your assets… you will almost certainly see a reduction in benefits.
Sorry people, but we've messed up and there just aren’t any other ways to realistically reduce demand on the system.
It is going to happen.