By David Treece
I recently read an article that stated, “Economics is alchemy.” Stated another way it could be said that the financial markets are working on magic. An example of this is a recent CNBC article stating that “Social Security has a looming $11 trillion shortfall.” So what's keeping it going? Magic!
President-elect Trump has campaigned that he will preserve Social Security and will not cut benefits, but how he will do that continues to be alchemy. The CNBC article states that Congressman Sam Johnson has submitted a bill to save Social Security by reducing the benefits, delaying the age to receive full benefits, and excluding high-income earners or capping them.
Depending on Social Security is precarious given the large debt load and the inability to even attempt to balance the federal government’s budget. Like many people you may be thinking “I’ve heard for thirty or forty years that Social Security is broke and won’t be there for me in retirement.” Again, the government’s magic can only work for so long, and that’s why it’s crucial that you preserve any money you have saved up in retirement plans.
Being able to depend on your money being available when you need it or if Social Security changes is important. What’s sad is that many retirees put their savings in the stock market and never know from one day to the next whether they can depend on the money being there. Further, parking money at a bank can be just as risky given that legislation has been passed to use your money if the bank becomes insolvent. This has happened in other countries. Why can’t it happen in America?
Consistently reliable growth is what we specialize in at TreeceCo. We’ve been helping retirees and conservative savers retain their money since 1984. Call today to learn how you can create your back-up plan.