Could a Vote Help Your Retirement?
In the U.S., people went out to vote in the midterm elections yesterday on Tuesday, November 6th. Being registered to vote and actually exercising your right to vote is a privilege. And it's a privilege that some of us don't take advantage of because we somehow feel our "vote doesn't matter."
Well, it does. And your vote not only matters, but it could also greatly affect your future. An important part of most Americans' futures is being able to retire. And that's not only being able to retire at a reasonable age but also being able to support at least yourself throughout your retirement.
This year's midterm elections already broke some records. That included early voter turnout in a non-presidential election, the number of female candidates elected, and the number of candidates running. A lot of Americans came out to vote to make a difference in their futures. After all, this is the country we live in. And if we have even the slightest influence on how our government is run, we should take advantage of that opportunity.
Your future and your retirement are important. So, it's time to start paying attention to how politics and policies are shaping your future. Retirees and soon-to-be retirees should be paying a lot of attention. They'll be the ones who will soon be affected by what their retirement has to offer them.
And some of those voters wanted to make sure that their retirements would be secured...
Your Retirement Isn't Secure
According to a survey by GOBankingRates, the number of people who expect to retire "broke," which means that they have less than $10,000 saved for retirement, was at 42%. But could you live your life for the next 20 to 30 years with $10,000 or less in your savings? To be honest, it would be cutting it really close. And no one wants to live like that and wonder if they'll have enough money to survive or if they'll have to go back to work.
Based on trustees' projections of the U.S.' current demographic trends, and with the assumption that there will be no changes to current rules for who, when, and the extent of payments and reimbursements, Medicare will only be able to pay around $0.90 of every $1 of obligations in 2026. Not only that but also, beginning in 2031, Social Security will only be able to pay $0.77 of every $1 of scheduled benefits.
If you're planning to depend on Medicare and Social Security as your bread and butter for your retirement, you'll need to come up with a new plan. And you'll need to fight for the government to put more assistance into those programs to rebuild them.
Americans need to at least double their retirement savings. And they need to fight for legislation that'll rebuild Medicare and Social Security. After all, the money that you're earning while you're still working at your job is going toward Medicare and Social Security. So, wouldn't you want to see it later on when you're ready to retire? I know I would.
Like it or not, we're gonna need some taxes in order to allocate more resources to Social Security and Medicare. President Donald Trump has a "10% middle-class tax cut" on his agenda. But if that tax cut were to go into effect, it would mean that the government would become even less likely to deliver enough resources to maintain Social Security and Medicare. Politicians who offer tax cuts seem like a great idea now. But shouldn't you also be making sure your future is secure?
Even if the government puts resources toward Medicare and Social Security, you should still put a bigger emphasis on saving for your retirement. Most financial planners suggest that you save 10% to 15% of your income for retirement. That's if you're starting in your 20s. If you're older, it's time to start saving a little more. And one way to get more income without doing too much is investing.
Investing gives you the chance to take your money and double, and maybe even triple, the amount that you invested. You've got nothing to lose… only to gain!
Until next time,
Pro Trader Today