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Happy 2013!
In one respect, it already IS a great new year since — as I predicted — our dividend tax rates will remain much lower than all the doom-and-gloomers expected.
At the same time, let’s recognize that the fiscal cliff “agreement” was NOT some type of big fix. It merely kept the government’s cash registers running a bit longer.
The headlines are already filling up with some of the next major financial debates that will take place in Washington, including the debt ceiling.
Of course I think the biggest battleground of 2013 is going to be something that most of the media is not yet talking about — the Social Security system.
As I explain in my brand-new video — “The Death of Social Security” — lawmakers have been running the program into the ground with reckless abandon.
They have continually expanded the Social Security’s scope …
They have aggressively “borrowed” from the trust fund …
And for the last few years, they passed new laws that only made Social Security’s annual shortfalls WORSE!
But as with all the other fiscal problems plaguing our country, the bill is coming due. Millions of newly-retiring Americans are expecting to get the money they were promised.
The first little sign that things are hitting a critical wall: During the fiscal cliff negotiations, lawmakers didn’t push to keep the payroll tax cut in place.
I can only shake my head at all the mainstream commentators saying how hard this is going to hit average Americans. Not because they’re wrong, but because this is just a reversion back to the old rate!
Wait until they see what actually has to be done to really get the program back in the black:
- People who are already receiving benefits may see their future cost of living adjustments taken away or even suffer some new means testing system that reduces promised payments …
- Middle-aged folks may watch helplessly as retirement ages are raised across the board …
- And anyone still paying into the system should expect as much as $15 of every $100 earned to go into the program when caps and taxes get jacked up.
In fact, I don’t think you’ll find one single person arguing that Social Security’s problems can be fixed WITHOUT more taxes and/or benefit cuts. It’s basic math.
Unless we abandon the program entirely, these outcomes are inevitable. And the longer it takes for lawmakers to implement them, the more extreme the measures will ultimately have to be.
So if you haven’t yet prepared, please do so now by watching my free video. As you’ll see, while the situation is maddening, there are a lot of simple steps you can take right now to help you continue enjoying the lifestyle you deserve.
Of course, whatever your personal opinion about programs like Social Security, there is absolutely no denying that our elected officials are to blame for the current state of affairs.
And this is just one of the many ways Washington is destroying Americans’ ability to retire comfortably.
It’s no secret that I believe dividend stocks remain one of the best ways to gain financial independence and growing income streams. However, there are plenty of other tools you can use, too. I’ll be doing my best to introduce you to more of them in the coming weeks … so that, despite all the challenges, 2013 can be your most successful year yet.
Best wishes,
Nilus
{ 4 comments }
Hi Nilus;
I am wondering about the split for ABT stock at the beginning of the year. The way you explained it, stockholders should get an equal # of stocks of ABBV of which I have not seen show up in my Scottrade account. Can you advise me on this matter pls?
As is, I took a pretty big hit on my ABT stocks.
thanks
Nilus,
You state that:
“They have aggressively “borrowed†from the trust fund …”
and
“And for the last few years, they passed new laws that only made Social Security’s annual shortfalls WORSE!”
What years of shortfalls are you referring to? And how can there be SS shortfalls when when SS’s annual surpluses are being “aggressively borrowed” to reduce general fund deficits? Moreover, if SS is actually experiencing shortfalls, are you telling us readers that the government is now defaulting on redeeming the special bonds SS holds representing the $$2.7 trillion it has loaned to the general fund? If so, please share when that decision to default was decided and announced?
The amount of debt owed to the Social Security Trust “Fund” seems a mystery. Is there actually such a fund?
I recall Pres Clinton and VP Gore mentioning setting up a “lock box” for SSI funds but nothing came of it.
Is this fund just a paper entry on balance sheet the US Treas tracks. I know taxes paid from wage earners go into and out of(to pay retirees) some account but I also hear Congress can access this “fund” -account” to meet govt expenitures. How do realists describe the system?
HELP!! FOR US, THE LITTLE GUYS AND STILL WORKING WHAT SHOULD WE DO AS THE BUBBLE BURSTS, WITH OUR 401K PUT ALL IN FIXED, SMALL CAPS, CONSERVATIVE MIX ETC I HAVE NOT SEEN THIS ADDRESSED IN MONEY AND MARKETS.
USING YOUR SERVICE HELPED OUR 401K IN 2007, WE DID NOT LOSE AS MUCH AS OTHERS.
THANKS, FOR ANY HELP CAROL AND DALE KALCICH