Podcast Episode 295: Is the End of Social Security Near? (Mailbag)

Is the end of social security near? Evidence suggests that, while it is not likely to disappear soon, its long-term outlook is uncertain. Social security benefits have been decreasing over time and are inadequately funded. So what will the future hold for this important piece of retirement income? We’ll address that along with two questions from the mailbag on travel expenses and dividing an estate.

Social Security is a critical part of the American safety net, providing benefits to millions of people who rely on it as their main source of income. Despite its importance in the economy, there are some misconceptions about Social Security’s sustainability that can lead to fears about it going insolvent. Fortunately, Social Security is designed to be self-funding and likely won’t go insolvent in the immediate future.

While the debate continues at the federal level and the uncertainty seems real, most feel that politicians will make the decisions necessary to keep the program funded. Before you rush to make any decisions about claiming your benefits early, make sure you work with your advisor to determine what option is best to get the most out of Social Security.

Now let’s talk about two questions that were sent into our podcast recently. The first came from someone who has been wanting to travel to Europe for a number of years but the trip keeps getting put off. Now they’re wondering if it’s still worth going as they approach retirement because that money might be needed for nursing home care.

This is something that Eric can relate to and tells a story about on the podcast. He had planned a big trip to Disney with the family in 2020 that continued to get rescheduled until they finally took in two years later. They had such a great time and were happy they actually stuck to the plans to take the trip because you just don’t know what life will allow down the road.

That balance of living for today and making sure you’re prepared for tomorrow is why you plan. We meet people all the time that did a great job saving but didn’t do as much as they wanted to because they were busy saving. If you’re apprehensive about spending money, sit down with our team or another financial professional to find out where you stand.

The second question we tackle is about estate planning. No one wants their children to argue or fight over who gets what, so what’s the best way to divide your estate? From our experience, dividing your assets up equally is the best way to prevent arguments between siblings, but that might not be the path you want to take with your estate plan.

Some people like to involve their children in the planning process but others would rather not. What you have to figure out is what makes the most sense for your family. Because at the core, it’s your money and your life and you should do with it exactly like you want.

If you want to discuss these planning items or any others, take advantage of our complimentary Money Map review and we’ll get the process started.

Here are a few of the things we discuss in this episode:

0:17 – I put off a trip to Europe for many years and now I wonder if it’s a wise use of money. What if I end up needing nursing home care later?

2:47 – What’s the best way to keep your children from having disputes over your estate?

4:32 – Is it fake Jake? The looming depletion of Social Security and Medicare.

6:40 – How do politicians manage the future of Social Security?