Retirement Planning
Concerning retirement planning, take this short quiz—you cannot afford to get the answer wrong:
Who will fund your retirement? (*see answer key below)
a) the government
b) your company
c) you will
d) do not know
*Answers
a) Doubtful—the Social Security Trust Fund is in danger. Social Security ran a $55 billion deficit in 2012.1 In 2033 the Social Security Trust Fund will be exhausted.1
b) Doubtful—Traditional pensions are disappearing across America. Bankrupt companies are passing their under-funded plans to the Pension Benefit Guaranty Corporation (PBGC) at an alarming rate. "Over the past forty years the Pension Benefit Guaranty Corporation has assumed responsibility for thousands of failed plans. Traditional defined benefit pension plans offered by private employers are rapidly facing extinction and with the PBGC's deficit recently hitting a record $34 billion, the future of private pensions looks grim."2
c) Your personal savings and investments are extremely important. Do not procrastinate. Do not guess. Have a plan for your retirement income. Learn 6 Tips for 401(k)s and How To Make the Most of Your IRA.
d) See answer c.
By planning for retirement, you will protect your future. Financial planning for retirement creates a long-term plan to build and protect your wealth.
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*The initial consultation is at no cost.
Related Information:
1The Heritage Foundation, "Social Security Trust Fund Reports Massive Deficits, Benefit Cuts by 2033," by Romina Boccia and Rachel Greszler, May 31, 2013.
2Forbes, "PBGC Should Investigate Causes of Pension Failures," Edward Siedle, contributor, February 15, 2013.