Investing and Social Security

On Monday, April 23 the Social Security fund trustees reported on the state of the trust fund. It's not pretty. It's one reasons for anybody facing retirement in the next 40 years to save up our own money and not rely on picking the pockets of the younger generation.

It's a prescription for both class and generational warfare.

Unfortunately, politicians have not gotten across the message to the general public that they should not be counting on Social Security for their retirement under it's current setup. You should hedge your retirement investments so that you don't have to count on either Social Security or selling off the stocks and mutual funds you're now accumulating. You should consider selling off all non-dividend paying stocks and paying stocks and bonds that do pay you interest, and hanging on to them -- forever.

Or you risk selling them without having to pay capital gains tax in the future -- because you're selling them at a loss!

Most people don't realize this is related to money, but you should also protect your health also. Quit smoking. Quit drinking to excess. Go on the Zone diet. Get regular moderate exercise. Take nutritional supplements. Don't go on prescription drugs.

The healthier you are, the longer you're able to keep working, which is going to be important to your financial health. Plus, of course, it should be obvious that the healthier you are, the more you'll enjoy all of your life.

The Medicare Part A trust fund is going to start paying out more than it takes in this year -- 2007. It's going broke faster than the regular RSDI Social Security trust fund. Do what you can to stay out of the hospital because you're going to have to pay more and more of it yourself.



investing and Social Security
investing and Social Security