What would you say to the person who has stated these three simple things?
- The Social Security Trust Fund is not only fine, it will actually have a surplus within 15 years.
- The deficit, even if $10 trillion were added to it today, would begin to decrease in under 10 years.
- Those political pundits, members of the press, and even Hollywood stars are correct: You really do want to give the government more of your money.
Well, we are saying all three things, and we are willing to show you exactly how they will all come to pass.
The rules of retirement have changed, and (even though the government has been screaming about them from the rooftops) these changes have fallen on deaf ears. Not only has the financial industry turned a blind eye towards these changes, but even you, the investing public, couldn't seem to care less.
In the end though, by February 2018, there will be an awakening. And things will change because they have to, not because people want them to.
Just like in life, smokers never really quit smoking just because they want to, but because they have to. Those who are overweight, when do they lose those extra pounds? When they have to, or else. And if they still don't, weight loss will begin on its own after that massive coronary.
The same thing will happen in 2018: the financial industry will have to change. Not because it wants to, but because investors demand that it does, or else.
Come 2018, when the eldest Baby Boomers receive their first Social Security benefit check, they will quickly notice through their milky cataracts that the amount they are used to receiving will be significantly less than before. Why? Because of those pesky required minimum distributions (RMD's) they HAD to take when they reached the age of 70.
See, these RMD's are considered to be income by both the IRS and by Medicare. And as you will find out from the "Rules" page, income is not your friend, especially when your health is on the line.
Ultimately, your very own savings will be used against you to increase your premiums for Medicare, and those premiums are paid directly through your Social Security. This means the more income that is generated in retirement, the less Social Security one will receive. And with the trillions of dollars invested in tax deferred accounts, the... Well, you should be able to figure it out by now.
The funny part (or when the "come-to-Jesus" moment happens): When the Baby Boomers ask when this was implemented, just think of what their reaction will be when they are informed that it all went down 15 years ago, back in 2003.
Social Security will then ask one simple question: "Didn't your financial advisor, the expert on the topic of retirement, know about this?
- Social Security is fine.
- The deficit will be paid down.
- You want to give the government more of your money... Well, at least your financial advisor does. They can't wait to give your money to the government.
Welcome to Healthcare in Retirement! Our mission: to educate anyone and everyone on how the financial plans of today will impact the health costs of tomorrow. Think about it: your own financial plan has become toxic to your health!