In 2016, the U.S. government collected almost $4 trillion dollars in taxes, with a bit over two-thirds of that money going toward social insurance programs like Medicaid, Medicare, Social Security, unemployment, etc. Social Security alone came in at a huge 24 percent of the fiscal spending, and experts say that this percentage is growing each year. In fact, it’s about to get very large!
Now, to see just how much of an increase GDP-wise has occurred, note that in the World War II era, one percent of the GDP went to social insurances. Today? More than 15.5 percent.
That’s a pretty big increase!
Baby Boomers enter the scene
Each day, 12,000 new baby boomers begin to collect their social insurances, like Social Security, Medicare, and so on. This is the approximate 76 million people that were born just after World War II, between 1946 and 1964. So, this year, in 2017, this includes those that are between 53 and 71.
So, this means that there are at least 76 million baby boomers (plus immigrants) that are looking to collect their social insurance programs!
At age 62, men and women can begin collecting their Social Security benefits. Research indicates that most of those retirees are not really in a financial picture where they are able to retire on Social Security alone. They haven’t been saving for retirement throughout the years, and many are steeped in debt.
Social Security not meant to be your only source of retirement income
If you’re going into retirement thinking that you’ll have it made solely on Social Security, you may be in for financial strain. Why? Social Security was meant to help with your retirement foundation. It was never meant to be your source to retirement economic freedom. In fact, Social Security only replaces about 40 percent of each person’s average salary. That 40 percent isn’t really enough to allow you to have a comfortable retirement.
On top of Social Security benefits
In addition to Social Security benefits, financial experts assert that you should be thinking about other ways to add cash flow during retirement. This could be investing in your 401k, stocks, bonds, and real estate. Just relying on Social Security alone for retirement simply won’t be enough for you to be able to sit back and enjoy your retirement without having to worry about money.
How real estate investments can help
Investing in real estate can certainly help put you in a better financial spot when you retire, but it will take a commitment to learning about investing. You cannot simply purchase property and hope for the best. It takes education, skill, and discipline. Fortunately, there are real estate investment mentors who are able to assist you with your portfolio, so that you don’t have to go at it alone.
It is possible to become financially independent through a real estate portfolio. Many people seeking to be comfortable during retirement aim for the long-term income producing properties. They crunch the numbers and aim for a higher rate of return on their investments than if they were to invest in the market, bonds, and so on.
Are you working toward your retirement? Are you counting solely on Social Security? Don’t discount the possibility of real estate income helping afford you a comfortable and financially stress-free retirement. Need help getting started? Check out my Unlimited Funding Program today.