American Retirees Want to Know Whether They Will Outlive Their Money

The question remains whether retirees have done enough to ensure that their money won’t run out. Americans are living longer, and with the volatile economy, and world economic woes, there are many unseen factors that can affect retirement planning.

Shreveport, LA – August 24, 2015 /MM-LC/ —

Just as the Social Security program is turning 80 years old, many financial experts across the nation are questioning new changes made by the House. According to the executive director of The Alliance for Retired Americans, Rich Fiesta, the House is arbitrarily changing rules that have been in effect for many years. One of the most alarming is that those who manage the Social Security program can now move funds around between disability trust funds and retirement trust funds. Experts believe this could place the entire program in jeopardy by potentially cutting benefits over the next few years.

New reports point out that, under the current conditions, the Social Security program will be unable to pay 100% of retirement benefits to retirees and these changes could come within the next 18 years. By the year 2033, seniors will only be able to collect 77% of their benefits, unless something is done immediately. New studies show that a massive one-third of all retirees now rely solely upon that monthly social security check to pay their bills and live. Without the full amount of their social security check to rely on, seniors might be forced to return to the workplace.

The obvious answer is for Americans to make other plans. These include investing in stocks, bonds, and mutual funds and of course, simply placing money in a savings account regularly. With the right approach and a savvy financial advisor, anyone nowadays can grow their assets substantially over a period of time. Investing and financial markets have traditionally been an area where the average American feels uncomfortable due to their lack of understanding. Those who work with a financial planner can be assured of staying on top of changes and trends in the markets. Of course, no plan is foolproof, but experts agree that those who take retirement planning seriously usually have the edge over those who don’t.

Colin Evans of Evans Financial Group in Shreveport, Louisiana reminds clients that though the market always corrects itself, those already in retirement may not have time for the correction. “This is a significant time of volatility for the stock market,” Evans says. “Greece and Puerto Rico have both recently defaulted on their bonds. We all remember the stock market crash of 2008, but most folks don’t realize that it took about 10 years for the market to fully recover. If an individual is 70 years old counting on retirement funds, and another crash occurs as severe as 2008, he or she may not have 10 years to wait for the market to fully correct itself.”

According to statistics, big crashes do often require a full 10 years to recover. On the positive side, the S&P 500 has tripled since March of 2009. Even if investors lost big during the October 2008 crash, they’ve more than regained their losses by now. Evans says that he sees many people in his region who are fearful of another crash and holding onto their cash reserves instead of investing. They take the safe money approach due to the volatility of current stock market, which sounds like a good idea until realizing that earnings are only 1 or 2 % per year.

The solution most often chosen by Washington politicians is simply to raise taxes. History has shown that this avenue rarely works. The facts are clear: the social security program has not kept up with the dramatic changes that have occurred in the 80 years since its inception. When it was first signed into office by FDR in 1935, the payroll tax was a mere 2%, which was split equally between employer and employee. Today, that same tax is at 12.4%. Originally, only the first $3,000 was taxed, but today that number is $118,500.

Though the importance of Social Security cannot be minimized, most experts agree that Americans must take a more proactive approach. They cannot simply do nothing and count on their monthly retirement check to take care of the majority of their needs.

Evans Financial Group is owned and run by Colin Evans and his father, David Evans. The two men have over 50 years of combined experience and have dedicated their lives to helping individuals and companies prepare for the future through wise investing and sound financial planning. Their new book, Retirement at Risk goes into greater detail about the many ways older Americans can ensure a happy retirement where there’s no shortfall of funds. Retirement at Risk is currently being sold on Amazon.

For more information about us, please visit http://www.evansfinancial.com

Contact Info:
Name: Colin Evans
Email: colin_evans@evansfinancial.com
Organization: Evans Financial Group
Phone: 318-629-4852

Video URL: https://youtu.be/yAsQxvYuTwE

Source: http://councilofeliteadvisors.com/liftmedia

Release ID: 89672