The End of Social Security? Four Myths Debunked

In this video, we delve into a recent alarming headline from the Washington Post about the grim financial outlook for Social Security and Medicare. The report from the Social Security and Medicare Board of Trustees indicates that both programs are running out of funds at an alarming rate, potentially leading to automatic benefit cuts within the next decade. However, headlines often don't tell the whole story. Join me as I break down four major myths surrounding the future of Social Security and discuss potential government solutions to this looming crisis.

By the end of this video, you will have a clearer understanding of the current state and future outlook of Social Security, enabling you to make more informed decisions about your retirement. Stay informed, plan ahead, and consider working with a financial advisor to navigate these complexities.

00:00:00 - Alarming Headline: Social Security and Medicare Crisis
00:00:45 - The Whole Story: Beyond the Headlines
00:01:25 - The Funding Mechanism
00:03:48 - Myth 1
00:05:43 - Myth 2
00:06:30 - Myth 3
00:05:55 - Myth 4
00:8:50 - Solutions: How the Government Might Fix the Problem
00:11:30 - Conclusion: Staying Informed and Planning Ahead

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*ABOUT ME*

I’ve always been passionate about personal finance, investing, real estate, and helping people find the freedom to live their life with purpose. But when my dad died in 2015, I tried to help my Mom find an advisor to sort out her finances. Instead of a helping hand, I found an industry of financial advisors dominated by glorified salespeople working on commission — pushing products that were not in my mother’s best interest. Or advisors with minimums that shut-out all but the ultra wealthy. Disappointed with the options, I took matters into my own hands and launched Foundry Financial, a wealth management firm with transparent pricing that specializes in helping provide clarity around money — so you have the confidence to make smart decisions.My goal is to help a million people retire without worry!

📅 *THE BASICS OF RETIREMENT PLANNING*

Retirement planning has several steps, with the end goal of having enough money to quit working and do whatever you want. Our goal is to help people master retirement and retire without worry.

Step 1: Know when to start retirement planning. When should you start retirement planning? The earlier you start planning, the more time your money has to grow. That said, it’s never too late to start retirement planning. Even if you haven’t so much as considered retirement, don’t feel like your ship has sailed. Every dollar you can save now will be much appreciated later. Strategically investing could mean you won't be playing catch-up for long.

Step 2: Figure out how much money you need to retire, The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.

Step 3: Prioritize your financial goals. Retirement is probably not your only savings goal. Lots of people have financial goals they feel are more pressing, such as paying down credit card or student loan debt or building up an emergency fund.Generally, you should aim to save for retirement at the same time you're building your emergency fund — especially if you have an employer retirement plan that matches any portion of your contributions.

Step 4: Choose the best retirement plan for youA cornerstone of retirement planning is determining not only how much to save, but also asset allocation. It can make a massive difference in your retirement plan.

Step 5: Select your retirement investments. Retirement accounts provide access to a range of investments, including stocks, bonds and mutual funds. Determining the right mix of investments depends on how long you have until you need the money and how comfortable you are with risk. It’s often helpful to talk with an adviser to discover the right mix of stocks and bonds.

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⚠️ "DISCLAIMER:⚠️This is not financial or investment advice. This Channel is meant for EDUCATIONAL AND ENTERTAINMENT PURPOSE only. None of this is meant to be construed as investment advice, it's for entertainment purposes only. #retirementplanning #retirement #passiveincome

[foundryfinancial]

Are you worried Social Security is going away?

[johnnyretires]

Great video. Despite your very clear explanation of SS and the SS Trust Fund there are people who will not want to believe the facts.

[johnpowell]

Super helpful. Thank you. My brother, who turns 62 next year (and is retired) is planning to withdraw as soon as he can because he keeps reading the doom and gloom stories you mention.

[mdevorah]

I am so glad you did this. I try to read everything on Ss and retirement.
The myths are still coming out of so many financial web sources.

[bpaul]

Great video that needs to be heard to help counter the fear from all the noise out there - thank you

[learning.finances]

Great video Kevin. I have watched and even commented on other websites about social security myths and solutions. You did a great job. I feel too often people just regurgitate what others say without understanding a topic. For example, I still hear people say, "I am not counting on social security being there when I retire." I often will followup with the question to that person "Can you explain how social security works and the possible solutions to fix it?" 99% of these people will answer with something like this, "Well, I don't know how it works or any solutions to fix it, I just KNOW that it won't be there when I retire." It makes me laugh and baffles me because how can a person say that without first understanding it? It reminds me in my field of exercise science, how people will say they need to eat more protein without first understanding it. Just simply understanding how much protein one currently consumes (most have no clue), then understanding how much they need based on their weight and activity level (again most have no clue) is a great start to determine if one needs to consume more protein or not. But the media, especially protein companies will say eat more protein and they market it as a "super nutrient". Why? Lack of knowledge about protein, but mainly because the companies profit from selling protein supplements. Not to get too far off topic, education on a topic like social security or protein is vital in answering simple questions like will social security be around when I retire or do I need to consume "extra" potein. I heard this saying once that has motivated me to understand a topic before commenting or moving forward and it is this, "Ignorance is expensive financially, emotionally, socially, and physically."

[smileystevie]

Thanks, Kevin, for an insightful video on social security.

[roberthodge]

Great video! Thank you. What age do you consider close to retirement?

[PorscheSpeedster-kznc]

We need to eliminate the $168600 cap on SS to cover the deficit. It would also be nice if this could eliminate the tax on social security benefits at 50% & 85% or at least raise the taxable threshold indexed for inflation which they currently do not.

[JackF]

What is the difference between raising taxes on Social Security income and cutting Social Security benefits? Sounds like a shell game.

[PeachSharon]

Very good explanation of SS. Better than other videos in yourube

[mutantryeff]

The trust fund gets no money, as it has all been going into the general fund and the govt just providing the SSA IOUs. Where have you been?

[ApexPrepperStories]

So they (the US Gov) have been paying the money back to the trust fund with interest??? I’d heard they have not paid back anything. ❓

[chrisforker]

All my retirement planning has ignored SSI. I have no idea if anything will be around in 10 years when I turn 70, but not counting on it.

With the lunatic extremists on both sides, will drive the country into the ground.

[johnurban]

People in their 70’s and 80’s will be working the jobs the Influencers don’t want to do so they will be fine. Nothing to worry about

[keywestjoe]

What will AI do to the workforce. What impact will AI 10:19 have on the economy. Hopefully the U.S. government taxes the heck out of corporate America when their workforce is cut 50% and profits increase considerably.

[cat]

Let me just say I think it is wrong to raise the age again, because if the average lifespan of an American is 76-77 years and if you can't retire until your 72 or 73 then you have been cheated out of many years of benefits. Not too mention many people at that age can no longer work, and most people won't hire them at that age anyway. In addition, cutting the benefits isn't the answer, either because people could be pushed into poverty if that happens.
Social security will never go bankrupt so long as there are employed people paying the payroll taxes into the trust fund. What is being depleted is the surplus that will run out in about 10 to 12 years. Once the surplus runs out then people will get about 20% less in benefit payments. All they need to do is raise the damn tax cap substantially or get rid of it. Raising the social security taxes is also a good idea. My fear is that the Trump administration will follow through with getting rid of those taxes, as he has pledged to do, to purposefully sabotage the trust fund, and then we will see it definitely go bankrupt. I would not trust ANY politician to convince you that putting all that money into the big banks hands and the stock market is a good idea either. Just look at what the big banks did back in 2007-08, many retirees who had their life savings invested into stocks lost all their life savings. One big crash or mismanagement by the banks is all it takes to see all that money go bye bye.

[lisaselby-brood]

I can't get past the concept of the inverted Pyramid. It's been around for years and so many people don't talk about it. You picture a Pyramid and the boomers are on the bottom. For years they've been paying into this system and the tiny point on top were drawing benefits. that Pyramid is inverted. Now all of the boomers are on the top and we all want our money. On the bottom is who is paying into that system? That's that little point balancing and it's going to tip over. Because there aren't enough people to pay into the system, and nobody wants to work. You can't get around that concept. The boomers were the largest generation paying into that system for years. And when we all start asking for our money, the system will collapse.

[jamesbryant]

There is no "trust fund". Stop perpetuating that lie. Any extra is spent in the general treasury and bonds(IOU'S) are issued. And guess where the money to pay those bonds come from.... So stop trying to pass it off as a trust fund.

[Noneofyourdambusssiness]

We need to make SS changes - remove $168k cap - maybe raise in increments over decade to $500k, then stagger at 10% increments to $1mil. Additionally- we shd look at ways to truly make this program about need not about need. The more you have and are well off, maybe you receive a slightly less benefit while those in true need get a regular rate. We can't avoid changes and leave our kids and grandkids with trillions and trillions of debt. We shd not screw with our Vets and their benefits like Tepubs want. Politicians are chicken shit ass kissers and that's why they don't fix this.