Saturday, February 26, 2011

Invest In Your Future Now ... Will Social Security Be There For You?

Are you relying on Social Security as a source of income in your "golden years"?  Most people are expecting their Social Security to support them or help support them when they are ready to retire. 

I am looking at my Social Security Statement from February 2010 right now and there is a very interesting part of this statement that I am not sure you are aware of.

It states: "Your estimated benefits are based on current law.  Congress has made changes to the law in the past and can do so at any time.  The law governing benefit amounts may change because, by 2037, the payroll taxes collected will be enough to pay only about 76 percent of scheduled benefits"

Well, what does that mean exactly... not sure, but I don't think I can really count on Social Security being there for me.  Gee, congress can make changes to the law any time - that is reassuring. 

So lets say you were suppose to get $1,000 a month, now you are getting $760... hmmm I could have done a lot with that extra $240.

I feel that real estate is a very good investment, if you look at it long term.  If you are renting now, you should buy yourself a little home - just to get your foot in the door.  If you currently own a home you can buy yourself a little house to rent out - over the years it would go up in value and your loan balance will decrease.  When you need some additional income to live on in 25 years, it will be almost paid off.  This could be your nest egg. You can refinance and pull your money out or just sell it. 

I like to think of this type of thing as "the investment that keeps on giving".  If you refinance and take some money out to live on, you still have the property... you can then leave it to your kids when you pass away or you can refinance several times throughout the years.  Hence, the investment that keeps on giving.

This type of small investment is easy to manage.  There are many options.  I have years of experience with property management and can help guide you through the process.  Think about your future, Social Security isn't.

Call me and I can get you started.

Cheryl Malone

Here are some other blogs I wrote:

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