How ‘Secure’ Is Your Retirement?
Jul 22, 2019
Social Security and Medicare trustees expect the programs’ costs to surpass income next year. This means the programs will have to rely on a trust fund to cover benefits – and officials anticipate that fund will run out by 2035, according to an April 22, Wall Street Journal report.
While Social Security specialists theorize the government will more than likely find a way to save the programs, they also predict it may mean raising taxes and lowering benefits to make it work.
This predicament reinforces the significance of financial planning and creating an income stream for yourself in retirement. Different investment programs, such as managed investment portfolios with an emphasis on generating income, can help you create an income stream in retirement.
Even if Social Security would remain unchanged, it’s important to remember that the program isn’t designed to replace your full income. Social Security retirement benefits will replace only about 40 percent of average earnings.
People who live on Social Security benefits alone can typically only take care of very basic living expenses. It does not provide for amenities such as a new car, vacations, visiting family or giving gifts.
When we help you plan for retirement, we take a look at your budget and what you need for your fixed expenses. We also talk about what age you plan to retire and when you expect to start collecting Social Security benefits.
Our goal is to work toward building enough personal assets to take care of your fixed expenses and leave you with some extra money left over. For example, if you need $2,000 a month to live on and you have a Social Security benefit of $1,500, we work toward trying to generate a consistent income stream to at least pay the rest of those expenses every month.
To make sure you’re on the right track toward retirement, give me a call today!
John Kuhn | Wealth Advisor
Main: 701-298-2240
Direct: 701-451-3056
john.kuhn@lpl.com
Securities and advisory services offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Bell Bank and Bell Investments are not registered broker/dealers and are not affiliated with LPL Financial. The investment products sold through LPL
Financial are not insured Bell Bank deposits and are not FDIC insured. These products are not obligations of Bell Bank and are not endorsed, recommended or guaranteed by Bell Bank or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.
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