The debt ceiling proposal has passed the House of Representatives as of this writing. The bill must be passed in the Senate before it ends up on the President’s desk to be signed into law. While it may be too soon to breathe the collective sigh of relief, the government has effectively kicked the can down the road to 2025. It’s not exactly what we need, but it is a short-term fix.
What needs to be addressed is what happens to Social Security benefits in the future. According to the Social Security Administration’s calculations, the trust fund will be depleted by 2033, and only 77% of the benefits will be paid. Since most of us count on Social Security to pay at least a third of our income in retirement, taking a 23% pay cut is severe.
Our financial/retirement planning software can model what the cut would look like in the plan. Because of this, we can help our clients plan for that reduction if it comes. We can help with a contingency scenario so that adjustments can be made. I don’t know about you, but I am not interested in returning to work in my seventies.
If you don’t have a plan, now is a great time to consider one, especially if you are near retirement. Give us a call at 256-417-4870; we would love to see if we could help.
Do you know when people in California buy earthquake insurance? After the earthquake.
Mike
Mike Mickels is the President of CochranMickels Retirement Specialists and an avid sporting clay competitor. CochranMickels Retirement Specialists provides personalized planning and investment services to individuals approaching and in retirement. They also provide retirement and benefits training to Federal employees. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc, a Registered Investment Advisor. CochranMickels and Cambridge are not affiliated.