Do you think social security will be around when you are eligible?

“Do you think social security will be around when you are eligible for it and what can you do about it NOW to AVOID running out of money in retirement?”
By Jeffrey Brooks, CPA, CFP, MBA

Reliable sources have predicted that social security will not be around much longer unless the treasury prints more money!

Even if social security is funded, you may not be eligible for full benefits because you have too much in income or assets!!!

So what do you do NOW to protect yourself?

Here a few thoughts:

  • “You need to pay yourself first because the government will not take care of you” Jeffrey Brooks, CPA, CFP, MBA
  • Although setting up a new profit sharing   plan or 401K plan also known as a defined contribution plan as well as what is called a “defined benefit” plan is too late, you still have time to get a deduction for a regular traditional IRA and SEP-IRA.
  • The deadline is not April 15th, 2012 but April 17th, 2012 due to Sunday being April 15th and April 16th, 2012 being Washington D.C. Emancipation Day.

Why, April 17th?  President Abraham Lincoln was assassinated on April 14th, 1865 and on Sunday, April 16th, 1865 the congress decided that the emancipation of the slaves should be celebrated.   IRA contributions remained the same at $6,000 if you are age 50 or older and have earned income over $6,000. If you are under age 50, your 2011 IRA contribution is $5,000.

Many financial experts believe in the long term that the ‘Rule of 72’ works which is that if you believe that an average return of 8% is a reasonable return, then in 9 years your investment will double.  If you believe that 6% is more reasonable then it will take 12 years to double your money.

The bottom line is that diversification is the key!  One of our clients, I will use the name “Bob” to protect his identity, put all of his money in his business and when the business failed he lost his house and eventually his wife and kids because he did not “pay himself first” by investing in investments other than his business.

I wish you the best of financial freedom and security!

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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009