Sequestrations, fiscal cliffs, job losses, lower birth rate . . . all of these contribute to the real concern that Social Security benefits will not be fully funded for the mass of baby boomers heading into retirement, or that Social Security as we know it will even exist in twenty or thirty years. According to Daily Finance the Trust Fund for Social Security benefits could run out as early as 2036.
One thing we do know: It is very important to become more self-reliant and prepare for your retirement needs by funding your own IRA now. Those golden years of retirement can be a wonderful time to enjoy the things you never get to do during your working years. However, this takes some discipline and planning ahead to avoid facing a scary financial future.
As stated in a previous blog post, many Americans are not adequately prepared for retirement. People are afraid that the Social Security check will get smaller, so some people may have to work well into their 70s.
There are plenty of reasons to control your future by building up retirement wealth in a retirement account—and for certain investors who are comfortable controlling their retirement accounts and their investment decisions, a self-directed IRA is a great way to go.
• Long-term unemployment or underemployment since the Great Recession has hurt Americans’ ability to fund Social Security or build up their Social Security credits.
• The current average payout for someone on Social Security is equivalent to a minimum-wage job, which means if any additional income is lost it will be nearly impossible to survive.
• The lower birth rate (post-baby boom) means fewer young people paying into the system to help support the baby boomers, who will pose a record burden on the system due to their numbers.
Due to the increasing concerns with the viability of Social Security benefits for supplemental retirement income, there’s no time like the present to prepare for your retirement and take control of your investments. Next Generation Trust Services offers several options to help Americans retire comfortably through self-direction, which allows for a broader array of traditional and nontraditional investments to build retirement wealth. To find out more about how to control your future with a self-directed retirement plan, or how to include non-publicly traded alternative assets in your retirement account, contact one of our professionals at Info@NextGenerationTrust.com.