New Social Security Update from Riedmiller Wealth Management
In year 2034, Social Security will have to cut benefits by 21% if nothing is done regarding the program’s long-term funding shortfall which the Social Security and Medicare trustees projected in their 2018 annual report released earlier this month.
They estimated that the combined trust funds for Social Security will run out of money in 16 years. Then Social Security will be able to pay only 79% in benefits.
Social Security was always supposed to be just part of a retired person’s income. Unfortunately many people rely on it for the majority or all of their income needs in retirement. Having only one source of income can be risky.
Thankfully, there are strategies that can help to put you in a better position. I enjoy helping people that are getting ready to retire or who are already retired to have a financial plan in order to help them accomplish their important life goals. Generally these are people in their 50’s, 60’s and 70’s in age. Many of my clients enjoy traveling, having fun, being with family and friends, and helping others.
There are a number of different ways to generate retirement income in addition to Social Security which can include:
– Annuites which can offer many different options. This is why working with a financial professional can help you sort through everything to find the best for your situation.
– Dividends from stock investments which can provide an income stream.
– Systematic withdrawals from your account. 4% used to be known as the safe withdrawal rate. Many now consider this percentage to be lower.
– Rental income from real estate or apartments.
– Part time business (use your knowledge from your working years)
– Part time job (think of working on a golf course or in a craft shop for a few days each week or month)
The list can go on and on. The point is that in retirement, it can be important to have a plan in place and to work with a financial professional. The future of Social Security might be a bit uncertain, but your financial future does not have to be this way.
About Mike Riedmiller
Mike Riedmiller is the President of Riedmiller Wealth Management, an independent ﬁnancial ﬁrm that is free from the product-focused, sales-driven environment that can be prevalent at large ﬁnancial institutions.