Retiring Without Social Security
Social security used to work really well. There were a lot more young people then there were old people and they could afford to pay everyone who was collecting it by taxing those that were working. Unfortunately as time went by people got older. We started living longer and longer, now there are less people at the bottom and more people on the top. Who knows how long it will be around in the future?
This is bad news if you are expecting government programs like social security to take care of you in your old age.
But it is not the only way to retire. In fact you do not even need social security to retire and live a well rounded life if you are smart about your finances. So, how do you do this?
One thing you can do is to start investing money into your 401k. 401k plans are great because they let you avoid taxes while saving up for your future. If you invest as much money as you can into plan like the 401k you will find that you have a nice little nest egg when you retire, just waiting for you.
If you want to know more about the plan your company’s human resources department should have 401k information about your specific plan and what your options are.
If you have been investing into your 401k and still want to have some extra money to invest one thing you can do is to invest into an IRA. IRAs work in much the same way as 401ks, you just have to set them up yourself instead of having your employer set them up for you.
The downside to these plans happens when you take the money out. Both the 401k and IRA distribution rules make it difficult for you to take money out of your plan early. They may also not be enough to support you throughout your entire retirement. So, to combat this you can look for extra sources of income outside of work. Writing your own book for instance is a great way to get money each and every month without having to actually work for it every month.
There you have it. Take the time to prepare your finances and you should be able to retire comfortably whether social security is still there in the future or not.
For some ideas on how to build some extra income outside of work here are some passive income ideas
Popularity: unranked [?]
