Friday, December 17, 2004

The demise of Social Security

Will social security exist after 2004 when it is projected to run out of money? Most say it won't. Those who say that it will are what I like to call dreamers. If it does still exist, it will be radically different and provide far less income than it does in today's world. I can only imagine how different the world will be when i would liekly retire just two years after social security is projected to run out of funds.

To make up for this, I attended a meeting at my former employer 3 years ago when they were just beginning their 401(k) savings plan. It contained no company match funds (due to their oh-so-stellar profit sharing plan which requires 7 years to become fully vested in) but the facts were there. Saving a mere 5% would guarantee at least a mildly comfortable retirement. I like to over-achieve and went for 7%. It may have been a bit much but that money built up so rapidly in the 10 months I contributed.

It was the beginning of a lesson. It continues today as I have my 401(k) (this time with a company match), Roth IRA and Money Market account. The lesson to be learned is that you have to look out for your own well being. If you think that our government with its own motives will be there to watch out for your golden years, you are sorely wrong. Save your money or even better, buy a home. That's what we are doing. We close on our nearly 2100 sq. ft. house on January 14th. Wish us luck on owning our very own piggy bank.

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