The State of Social Security
It’s no secret that the Social Security system is facing serious problems. When all the baby boomers start to retire (around 2010), the system will begin to pay out more than it takes in. As an accountant, my clients and friends often ask me what I think is going to happen, so I thought you might benefit knowing where it stands both for yourself and for them.The trouble can be summed up in one word: demographics. The system is designed so that workers pay into the system to pay benefits to retirees. Well, the ratio of workers to retirees has dwindled to an alarming level–from 40 to 1 when the system began in 1937 to 3 to 1 now. Plus, people are living longer, so retirees are collecting for many more years than before.
What Is Being Done to Insure Social Security Will Be There For You?
A special task force appointed by the government urged in 1997 that action must be taken immediately to save the system, but nothing major has been done to date. A few minor adjustments have been made, such as increasing the normal retirement age from 65 to 67. Also, well-heeled retirees must now pay tax on Social Security benefits. But these efforts alone are not enough to rescue the system.This is not to say that Social Security will vanish. It’s simply unclear what level of benefits you can expect to receive down the road.What to do: Call Social Security at (800) 772-1213 and order Form SSA-7004. This form will allow you to check on your expected benefits. It also shows your credited earnings. You may want to do this every few years to make sure you’re being credited for all of your earnings.Since your benefits are based on your earnings, your benefits may be affected if the system hasn’t captured all of your earnings. Keep in mind that Social Security taxes are paid on salaries up to a certain threshold, known as the Social Security wage base, which increases every year. For 2004, the wage base is $87,900. So when you look at your credited earnings for Social Security tax purposes, it will never be higher than the Social Security wage base for the year.It is hoped that the federal government will take care of the problems with Social Security, but even if it does, will Social Security really be enough? It is very common that when one purchases a home that they do not really take stock of when they will pay off their mortgage. For many of us, the reality is that our home will not be paid for when we hit retirement age. Depending on the amount of income that you make, your Social Security benefit may not even cover the amount of your house payment.
Ensure Your Own Retirement
So what CAN you do? Retirement consultants state that if one person starts a retirement fund at age 20 and another starts at 30, even if the 30 year old pays in twice as much per month into their program as the 20 year old, they will never catch up because of the operation of compound interest. But most of us are beyond 20, many beyond 30 already, so have we missed the boat? Not at all!The majority of those that describe themselves as financially independent own small businesses. Even if you are in your 40’s and have not taken part in traditional retirement programs, you can take control of your own financial future. The Professional Bookkeeper (PB) program teaches you how to make $30-$60 Per HOUR doing small-business Accounting and Bookkeeping services. Even without prior experience in Accounting or Bookkeeping, if you have the basic math skills to balance your checkbook, you have all the math ability to do Accounting and Bookkeeping.
Jump Start Your Retirement Now!
The average small-business client will pay you $300 per month to do their books. The real beauty is that it only takes 6-8 hours per month to service a single client! This means that you can service one client per day. If, for example, you build up your client base to 23 clients, that adds up to $6,900 Per Month or $82,800 Per Year in income! And that is not even working full-time! Would $82,800 Per Year in income give you some extra cash to put aside for your retirement? For most of us, that kind of income is exciting at any age.
Sell Your Business to Retire On Later
When you work for an employer, you are making them wealthy. Your success on the job provides for the business owners retirement, but what do you get long-term? The day that you stop earning a paycheck as an employee is the day that you cease to get paid. When you build your own successful Accounting and Bookkeeping service, you are building equity in something that is valuable to investors. One of our graduates recently was excited to report that they had just sold their 3-year old business for over $100,000 and were moving to Australia. Would $100,000 help towards your retirement?As you build your Accounting and Bookkeeping service, you are earning $30-$60 Per Hour now and creating something of value that you can cash in later. If you are anything but certain that Social Security and your current retirement plan will take care of your needs in the future, be assured that there IS something that you can do about it now. Nobody likes to have their future determined by events that they simply cannot control, so take the first step today to make the income that you deserve now and to retire in comfort later. Your Accounting and Bookkeeping service will ensure you the kind of future that thousands of our graduates rave about today.Learn How to Earn $80,000+ Per Year Building a Successful Accounting and Bookkeeping Service