The Social Security Act was signed into law by President Roosevelt in 1935. At that time it was designed to pay retired workers 65 and older a continuing income for retirement. In the beginning the Act only provided benefits for the worker; in 1939 Amendments were added for benefit payments to the spouse and minor children of the retired worker along with increased benefit amounts. In 1940 Social Security benefits begin being paid out on a monthly basis; prior to that it was a lump sum payment. It wasn't until 1950 that Social Security recipients received their first cost of living increase....let that sink in.... Now, I was not alive during those years, but I would find it hard to believe that prices of things remained level for 1 full years. Let's fast forward a few decades, people are still receiving cost of living increases with their SSI, but is it really enough to cover inflation....Here we are in May 2024 (already!) and yes there was a 3.2% increase for 2024, let's look at what 3.2% is....according to AARP the estimated increase was $59. "This will help millions of people keep up with expenses," Kilolo Kijakazi, Social Security acting commissioner 2021 - 2023. I'm pretty sure if I went out and took a poll most rent prices increased more than $59. Sadly, I see this happening with my own grandparents; being forced to move every 12-24 months because rents are going up and their SSI COLAs are not covering it, they have had to cut down to a 1 bedroom apartment and they had to ask their youngest son to move in just to cover expenses.
Why am I spending so much time talking about this? Well, because if we don't start taking this seriously and planning our own retirement nest egg, then heck we might all be living in cardboard boxes! Social Security was never meant to be the only source of income for retirement, but it has turned into exactly that for many people. So what do we do now?
You might think you'll be fine because you have that great 401K or IRA you have been tucking your hard earned money into, but have you considered the taxes you will be responsible for upon withdraw of those funds? You might also be thinking, that taxes are not a big deal because you plan on being in a lower tax bracket when you retire...well, probably not. Why? Simple answer, deductions. During your younger years when you are stocking all that money away you might have deductions for your children or that mortgage you've been paying on. Upon retirement most people lose those deductions, hence increasing your tax bracket. And we haven't even talked about what happens to your money in that 401K if the stock market takes a dip.....it's much easier when we are younger to stick it out and wait for the money to come back. As we get older, most are more concerned with protecting their retirement nest egg as a dip in the markets could cause a person to have to continue working for another 5-10 years. What if you could be provided with an option that would protect your hard earned money and GUARANTEE that you will not lose any of that if the market declines while still having upside gains, not as high as the actual stock market, but what is that peace of mind worth to you? We would love to show you an example of a scenario based on your personal situation.
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