Prepare Your Clients Now for Social Security Cuts
Financial advisors may want to talk to their clients about not keeping up with the Joneses in light of almost certain reductions in Social Security payments in the coming years, SeekingAlpha writes.
By 2034 Social Security will lack the funds to continue paying benefits in full, according to the Social Security and Medicare Trust Fund’s recent annual report cited by the web publication. Social Security’s disability fund, meanwhile, is estimated to become insolvent by 2028 and Medicare funds by 2029, Seeking Alpha writes.
Advisors will be well-served to prepare their clients for the worst. That means making sure people know the amount of their Social Security benefits while preparing for them to be far less, according to the web publication.
The economy isn’t likely to return to the 3% GDP growth everyone became accustomed to before the last recession, so people must be ready for cuts in benefits around 2034 or a jump in taxes, unless the government figures out another way to fund the Social Security program, Seeking Alpha writes.
And since individuals can’t fix a political system, they need to look at their own spending, according to the web publication. Here, it’s important to make sure that outside factors like Hollywood, advertising and social media don’t dictate how people live their lives, Seeking Alpha writes.
Just because your Facebook “neighbors” are buying boats, taking cruises and throwing lavish parties doesn’t mean that you should, too, according to the publication. Otherwise, people are driven by envy, materialism and covetousness, and making the right choices means filtering such influences out, Seeking Alpha writes.