CBS News is creating panic:
As it recently reported, the U.S. Social Security system is going bankrupt.
Meanwhile, as we’ve been explaining this month, the markets are in turmoil:
Stocks are dangerously volatile, bond yields are at historic lows — and if the government makes one wrong move, it could cause a crash.
So, if you’ve been counting on Social Security to get you out of this jam, it’s time to rethink your strategy.
Today, I’ll get you up to speed on this mess...
And then I’ll show you a way out of it.
Here’s the Problem…
When I first entered the workforce, I assumed I understood how Social Security worked:
I figured the government took my contributions and invested them for me. Then, once I retired, I’d get all that money back with interest.
But that’s not how it works. Instead, it collects money today from everyone who’s working, and then hands it over to current retirees.
As long as there are more workers than retirees, there’s plenty of money.
But when there are more retirees than workers, things quickly fall apart. And that’s exactly what’s happening right now:
With 76 million “Baby Boomers” starting to retire, too many people are taking money out of the system, and not enough people are contributing.
That’s why, according to the Pew Research Center, in 2010, the Social Security system started losing about $78 billion every year.
That was bad enough already.
But now things are getting really scary…
The U.S. Government Can’t Help You
According to a recent news report from CBS News, the trustees of Social Security forecast the program's reserves “will be depleted by 2034…”
2034 is just years from now. It’s right around the corner.
As CBS puts it, this will “crimp household budgets for seniors and even push some into poverty.”
And the situation for Medicare is just as dire: “Medicare's giant trust fund for inpatient care won't be able to cover projected medical bills starting in 2026…”
So if you were banking on the government to support you during your retirement, unfortunately, it’s time to face facts…
And it’s time to make a new plan.
First of All: Don’t Panic
Many folks are panicking.
And the media isn’t helping:
For example, CBS News quoted a Bankrate analyst saying, "Workers should panic because they aren't saving nearly enough for retirement."
But there’s no reason to panic.
You just need a plan…
Safe, Market-Beating Income
If you’re a member of our Income Unlimited service, in the next few days, you’ll be receiving your August issue.
This issue is about a secure investment that pays nearly 10% per year.
It’s a real estate investment — but I’d bet it’s unlike any other real estate investment you’ve ever made.
These are the types of opportunities we aim to identify for you every month:
Off-market investments that can help you save your retirement — and let you live you the life you deserve to live.
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