I hope everyone's having a good evening!
Alright so I thought of something that I think is a crucial issue that is arising, and will continue to be around for a long time now.
The question I ask is, how secure do you feel about retirement? I'd like to point out that this is not a question geared toward senior citizens. It's becoming a pressing issue, and is something that needs to be addressed both financially on a one-on-one basis as well as on a political level. Also, the interest in this topic came from why I want to be doing in the future with my career. As a prospective financial advisor, individuals coming closer to retirement are going to be extremely important clients to me, in regards to creating plans that will allow them to live comfortably upon their retirement and older years.
So really, what is the central issue pertaining to individuals' ability to retire with financial security. It is estimated that an individual should retire with savings equaling around one million dollars if they expect to be living on around a $30,000-$40,000 pension. With a nest egg of one million dollars, other costs must also be associated within the mix. These costs include healthcare, liabilities and other investments.
However, the country stumbles across another issue that will be affecting the ways in which individuals can comfortably retire. This issue comes across with the question, "What is going to happen to the Social Security Administration?" Simple, it is going to be GONE. And again, it is a very simple concept to understand that if one retrieves more money out of a system than is invested into it, it will disappear. Basic math, right? Yes, FICA and other Social Security expenses certainly may used as a tool to help those who are currently retiring. But come several or even less generations down the road, the Social Security net will no longer be able to hold anymore, and will ultimately collapse.
So really, what is something that is important to do now, in order to assure a comfortable retirement, and safe future into senior years? Saving will do it, partially, but there is always more that can be done. No single individual is expected to become the next John Paulson or George Soros, but what they are able to do is allocate their finances into different types of funds (Mutual Funds, ETFs) or IRAs (Individual Retirement Accounts) that will be able to aid in settling financial needs, and hopefully lift the burdens of everyday life when dealing with money. And the best part is, anyone can do it. I've been doing it since I was in the sixth grade. The stock market is definitely a tool I will be using to help myself financially. So my advice now before I become one, is, talk to an advisor, and see what they can do for you. And if not, find a reputable share builder like ETrade or Fidelity: companies equipped with the proper instruments to help any single individual with their financial health so that they can look forward to a brighter retirement.
I hope you enjoyed reading this post! Have a great week!