April 29, 2012

US Retirement Fund Running Out of Money - Do You Have Plan B?

On Monday, April 23rd, 2012, the trustees of the Social Security made the announcement that retiree funds will run out of money in 2033 and the Medicare funds will run out sooner in 2024.

The main reason given by the trustees for this shortfall is that real earnings by Americans will make slower growth. As a result tax revenues will decrease. Read CNBC report here.

In his website, "Being JR Ridinger - Inside the Mind of an Internet Mogul", JR Ridinger, founder of Market America, wrote about what this means when your Social Security runs out of money. In his April 24th article, "Will Social Security be there for You?", he wrote:

"For years we’ve bought into the concept that if we work hard and contribute to Social Security, it will be there to take care of us when we retire. Coupled with a decent savings strategy, many people have retired comfortably with the help of Social Security. But what if it was no longer here?"

"The truth is - those who plan on using Social Security to help sustain themselves during their retirement are in for a rude awakening."


"Do you think the 45-Year Plan will leave you in good enough shape to ride out retirement without Medicare and Social Security? I think not."


Read the rest of JR's article here.

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