Assessing Your Post Retirement Financial Needs

Retirement is a time of great uncertainty for most people, especially if little thought has been put into planning for post retirement life. One of the biggest anxieties is whether your finances will see you through this phase of your life comfortably. Although almost everyone invests in retirement savings plans, the fear of running short of cash at this crucial stage in life still persists. One way to get rid of this fear is by evaluating your post retirement finances and saving up towards expected expenses right now.

Outstanding Debts

The first step is to take stock of your financial situation. Calculate the amount of debt, if any, that you will need to pay after retirement. Ideally, all your debts should be paid off well before your retire. See if you can make additional payments now so that you are debt free when retiring. If not, set up a fund that will take care of any outstanding debts once you retire. [Read more…]

Recession May Actually Help Social Security System

People often wish to retire early in order to enjoy the earnings of their younger times. Many realized during recession that they would not be able to do so any more as their investments had to bite the dust in the bad times. But according to a RAND Corporation study this may actually be a good thing. [Read more…]

Depleting Social Security a Cause of Concern

Social Security benefits are self contributed, which implies that every month you are required to pay some amount to keep the system running. Because of this, the system is likely to face some serious problems as the demographic profile of the country tilts in favor of old people. [Read more…]

Bernanke Calls for Proactive Response to Keep Economy Stable

Although the economy has clearly begun to shake off the effects of the crash, it is only taking small steps forward. Analysts and economists agree that drastic policy changes or interest rate hikes at this point could well trigger another crash, this one worse than before as the fragile economy can not take another hit and bounce back easily. The Federal Reserve Chairman expressed similar views at his address before the Dallas Regional Chamber. [Read more…]

When is it Safe to Give Your Social Security Number Online

Your social security number is an important part of your identity, and if it falls in wrong hands, then you might have to face some serious problems. It can be used to steal your identity and could have financial implications as well. It can be used to commit criminal acts in your name and carry out frauds. [Read more…]

Social Security System to Pay More than Its Revenue

The social security system has reached an important threshold that it was not likely to cross until 2016. The system would pay more than it would earn this year because of the poor economy.

The social security system has suffered in the last 2 years – like every other part of the economy – and the effect will be reflected in its latest accounts, according to the Congressional Budget Office (CBO). The revenues have fallen because the major source for revenue is tax on payrolls. With people losing their jobs, payrolls have dropped significantly, and so have the revenues. On the other hand, expenses have increased. The people who have lost their jobs are now claiming benefits through social security and this has put a huge strain on the system. [Read more…]