Friday, March 25, 2011

Personal Protected Pension Plan

The Personal Protected Pension Plan is a proven, safe money solution for your retirement income needs.  In this unique plan design, you particpate in the up-side of the market but never lose money to the down-side of the market.  Click the link below to watch this short video to see why Debbie, one of our clients, decided to stop giving her gains back to the market and never lose principle again.

Personal Protected Pension Plan

Wednesday, March 23, 2011

Can Social Security Survive the Coming Economic Storm?

2012 will be the year that the first members of the “Baby Boomers” generation become eligible for full Social Security benefits. Starting last month, there has been an average of over 11,000 new Medicare-eligible applicants each day… a trend that will continue for the next 19 years as the Baby Boom generation reaches retirement age. In addition, 2010 and 2011 are expected to be the first consecutive years in which Social Security pays out more in benefits than it takes in through payroll taxes. Social Security has paid out more than it took in once previously, during the “dot com” crash, but that was a one year blip—whereas the current shortfall is expected to persist into the future. As this deficit continues to grow, will the government be able to deliver the benefits that many retirees depend on? What other effects will this crisis have on the larger economy?

Before we continue, a brief review of the concept of Social Security: as citizens work, a portion of their earnings are diverted into a Social Security fund. These funds are in theory used to repay contributors once they’ve reached retirement age, providing a reliable source of income to aid them in their retirement. In practice, the payroll taxes being paid right now are being used to provide the benefits for current retirees. That system works fine, as long as the workforce is large enough to support retirees. That has also been the case—until last year. 2010 and 2011 are expected to be the first consecutive years that Social Security ran a deficit—a trend expected to worsen in the future.

In other words, if changes aren’t made, Social Security is going to run out of money. That doesn’t mean retirees will stop receiving benefits, of course, because the federal government can print money to cover their obligations. But as you probably know, printing money often leads to deadly inflation and soon higher taxes will be needed. And inflation is the greatest initial concern of most experts as we evaluate the state of Social Security. Combine the Social Security crisis with the current unprecedented federal deficits that the government is running (at present trying to pass a higher credit card limit to continue trying to out-spend our economic crisis), and high inflation seems unavoidable, even if corrective action is taken.

So the question for you is this: how are you planning to manage these coming risks? Do you have a plan? Inflation, though it can potentially wipe away your savings, can be managed with proper planning. If you don’t have a plan, it’s time to get started. The coming Social Security crisis, combined with current government debt levels, mean that inflation and higher taxes are surely lurking around the corner. Don’t be caught by surprise! Take action now and learn what you can do to make sure you protect your retirement. Simply call (407) 478-1599 and let’s get started