In an earlier post, I asserted that Social Security (or Social Insecurity, as I like to call it) will absolutely fail.
Let’s break it down:
Baby Boomers were born between the years 1946 and 1964. If they intend to retire at age 65, that means the last of the Baby Boomers will retire in 2029 (which is only 16 years away).
We know there are 72-79 million Baby Boomers. For the sake of simplicity, let’s just say there are 75 million.
That means, in 2029, we will have 75 million retirees. Retirees tend to require assistance like Social Security, Medicare, and Medicaid.
Let’s say, on average, the government gives each retired Baby Boomer $1,000 a month. Think about it, that’s only $12,000 a year. Could you live on $12,000 a year? When factoring in inflation and medical expenses…$12,000 a year will be a piddly amount for a retiree in 2029.
I make that point so that you’ll understand how conservative this scenario is.
If every Baby Boomer receives just $1,000 a moth from these entitlement programs, it will cost $75 billion a month.
Don’t forget that this will be funded by your taxes.
If Warren Buffett gave away every single penny he had…it would all be gone in two weeks.
(According to his estimated 2009 net worth.)
The government won’t be able to take care of you.
I’m not trying to preach doom and gloom. I’m not trying to scare you. I’m simply explaining why I’m a Capitalist who values financial literacy and financial independence.
People say it’s too risky to invest in NYC real estate. I say it’s too risky to depend on the government.