Americans: Social Security
Social Security was never intended to finance our retirement, only supplement it. As the years went on, it got worse and worse. We'll see something, but don't count on it to fund your retirement for you.
That's one of the reasons that the government keeps increasing the amount that you can put into your IRAs and 401(k)s and have liberalized the laws on these plans. They expect us to plan for our own retirement and give us tax breaks in order to do it so that we are not planning on social security.
Camper, that is an excellent suggestion about not waiting for the tax return. Rather, increase your exemptions and put the money into a tax deferred investment like a 401(k) or IRA if you are eligible. You'll pay less in taxes overall and your money will be working for you instead of you blowing it when you get a refund. Yeah, you have to pay taxes on it when you take it, but at least it's there.
Invest what you can, know your risk tolerance and timeline to retirement, diversify your investments, and use the tools that are available from the provider of whomever you are investing with. Most of the providers I have seen have good tools for helping you choose your investments.
I'll get off my soapbox now.
Social Security was never intended to finance our retirement, only supplement it. As the years went on, it got worse and worse. We'll see something, but don't count on it to fund your retirement for you.
That's one of the reasons that the government keeps increasing the amount that you can put into your IRAs and 401(k)s and have liberalized the laws on these plans. They expect us to plan for our own retirement and give us tax breaks in order to do it so that we are not planning on social security.
Camper, that is an excellent suggestion about not waiting for the tax return. Rather, increase your exemptions and put the money into a tax deferred investment like a 401(k) or IRA if you are eligible. You'll pay less in taxes overall and your money will be working for you instead of you blowing it when you get a refund. Yeah, you have to pay taxes on it when you take it, but at least it's there.
Invest what you can, know your risk tolerance and timeline to retirement, diversify your investments, and use the tools that are available from the provider of whomever you are investing with. Most of the providers I have seen have good tools for helping you choose your investments.
I'll get off my soapbox now.
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