Intro:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much.
Brandy Auterson-Hurst:
There’s been a lot of talk in Washington lately about social securities finances. What’s going on there?
David Nelson:
Yeah, this is not a pleasant topic to talk about. I don’t know exactly where things are going to go, but it’s becoming very real as far as the discussion on social security and what may take place. I like to use the term that we got to put on our big boy pants and start addressing this issue. The numbers look really bad. Fourth quarter of 2032 is basically projected that the fund at that point won’t have enough money. This is only six years away folks, and so this is a big issue.
This chart that I have today, it’s really looking at payroll intake versus the money that’s going out the door. The bottom line here is looking at the income rate and how much is coming in from payroll taxes. The top line is looking at social security payouts and compared to taxable payroll intake. So you can see the income is higher than the cost, and that started in ’08, and it’s steadily gotten worse since then.
And so, again, we’ve basically been running this problem for 16 years. Something needs to be done. Last year alone, that’s a $200 billion deficit. We’re in the trillions here as far as assets, but sounds like this mass amount of money. But in reality, again, we’re looking at six years and we got a real problem.
Brandy Auterson-Hurst:
Yeah. So, what’s the takeaway for everybody watching at home?
David Nelson:
Well, I think do the best you can to try to prepare yourself. If and when nothing changes in Washington, there’ll be roughly a one-fifth cut as far as in your benefits, as far as looking at the six years down the line. Hope it doesn’t happen, but it could.
Brandy Auterson-Hurst:
All right, David. As always, thanks for joining us.
Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.