The Social Security Administration just announced that benefit recipients will get a 3.3% “raise†in 2007. But this cost-of-living adjustment just isn’t going to cut it … not in today’s world.
First off, the average Social Security recipient is getting just $238.25 a week in payments. Can you enjoy life on that amount? I don’t think so. And that 3.3% increase? It translates into a lousy $7.86 a week … or about $31 a month. That’s barely enough to cover the co-payments on some prescriptions!
Don’t get me wrong: I’m glad the government is trying to keep pace with rising costs. I just don’t think it’s doing a very good job. First, I’ll tell you why. Then I’ll tell you about one great place to look for more supplemental income …
Healthcare Costs Rising Much Faster
Than Social Security Payments
Since 2002, Fidelity Investments has been tracking how much retirees spend on medical costs. Here’s what they’ve found:
- Health insurance premiums are growing three times as fast as workers’ earnings and two-and-a-half times as quickly as consumer inflation.
- Retiree healthcare costs have been rising at an average annual rate of 5.8%.
- The typical retired couple will need $200,000 just to cover their out-of-pocket medical costs!
Fidelity doesn’t count on any help from employers when tallying up the numbers – and for good reason. The number of U.S. companies offering retiree health benefits is declining at a double-digit rate. According to the Kaiser Family Foundation, only a third of large employers give their retirees health benefits right now. That’s half the amount in 1988.
If Social Security is bumping up its payments by 3.3%, and your medical costs are soaring much faster, you’re going to end up with quite a shortfall down the line. And we haven’t even factored in other rising costs for everything from food to energy, let alone money you’ll need for leisure activities.
So where can you find the income to make up for the huge difference between your Social Security check and your actual costs? Where can you find the money to actually enjoy retirement?
Consider Investing in
Stocks That Pay Dividends
A lot of people sock away money in certificates of deposit or government bonds. That’s all well and good for your keep-safe funds. But if you want to live comfortably in retirement … with costs for everything from healthcare to energy surging … you’re going to have to do more. That’s why I think you should consider putting at least a portion of your nest-egg into stocks that pay dividends. These investments can both increase in value and provide you with a stream of income along the way.
Never forget: When you get paid a dividend, it’s yours to keep no matter what happens next! Unlike unrealized capital gains, which can vanish in one sharp market decline, dividend payments represent immediate, non-refundable profits.
Many of my favorite companies are household names … their businesses are easy to understand and remarkably profitable … and they’re more than happy to share the wealth with their stockholders through regular dividend payments.
I’m convinced that dividend-paying stocks can be especially helpful for anyone approaching retirement age, so I decided to write a special report called “Double-Dipped Dividends and Incredible Income Stocks.â€
If you’ve never bought a dividend-paying stock before, this report will show you the best ways to get started.
And even if you already have an entire portfolio stuffed with incredible income investments, I’ll give you:
A simple way to supercharge a dividend-paying stocks’ performance.
Off-the-radar places to look for yields.
Almost 60 specific stocks to begin investigating.
The most exciting part: My report also reveals an exciting double-your-income strategy. This little-known approach can produce another stream of steady income from dividend-paying stocks. It’s like dipping into the dividend cookie jar twice!
Sound speculative? It’s not. Sure, there’s the risk of loss with any investment. But when it comes to that second stream of income, here’s your biggest risk: You might be forced to take a modest profit on your stock holdings. That’s right … in the worst case, someone will pay you to book a gain.
Whether you’re worried about making ends meet in retirement or just want some supplemental income for travel and leisure, I think stocks that pay dividends deserve a place in your portfolio.
“Double-Dipped Dividends and Incredible Income Stocks†will be ready this Friday, October 27. And when it comes off the press, it’ll cost $69. However, if you’re interested in buying it right now, you can reserve your copy at the special pre-publication rate of $49 by calling 1-800-291-8545. Not only will you be saving some money, you’ll also be among the first to get the report e-mailed to you as soon as I finish it.
Sincerely,
Nilus
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