Raleigh, North Carolina (PressExposure) July 10, 2009 -- FOR IMMEDIATE RELEASE
Media Contact: Brian Van Norman 919.232.5008 firstname.lastname@example.org
Individuals Should Take Responsibility for Long-term Finances Social Security and Medicare Could be Gone in Future
With the financial strength of Social Security and Medicare worsening, individuals are worrying about the safety of their long-term finances. Dale Merritt, president of Raleigh-based Merritt Wealth Strategists, believes that Americans of all ages need to stop thinking that Social Security is a financial foothold for retirement and educate themselves on independent ways to provide for their financial future.
In the 2009 Annual Report on Social Security and Medicare, trustees of the government's two largest benefit programs report that Social Security will begin paying out more in benefits than it collects in taxes by 2016. They also note that the trust fund may be depleted as soon as 2037. Medicare is in an even worse situation, as trustees note that the program is already paying out more in expenses than it collects, and that it could be insolvent by 2017. The full report is available at http://www.ssa.gov/OACT/TRSUM/index.html.
"It's unclear if Social Security or Medicare will be around in the next 20 or 30 years," says Merritt. "People need to take control of their financial health and plan accordingly for their pending retirement."
Popular American financial author, Dave Ramsey refers to Social Security as "Social Insecurity" on his Web site (www.daveramsey.com), and Merritt agrees that Americans can no longer feel comfortable that they will have a nest egg awaiting them from the government as they age. Merritt adds that investment education is a critical component to sustained financial wealth, and that people are not being educated properly in regards to money and personal finances.
"There should be mandatory classes on investing and money management in high school and college, maybe as far back as middle school," Merritt notes. "Oftentimes, young people grow up seeing their families living on credit, and that is the wrong example for them to see."
Merritt recommends that individuals will be better off if they begin planning for retirement as early in their careers as they can, to take advantage of the benefits of longevity and dollar cost averaging. More information is available by contacting Merritt directly at 919.782.0033.