Stop Playing The Damn Social Security Game

For the life of me, I don’t understand why we play the Social Security game. It’s been hammered home. Don’t expect to solely live off the government’s retirement benefit. A Northwestern Mutual survey reveals approximately 15% of Americans are attempting to so do. The so-called Social Security “trust fund” contains I.O.U’s., because our trustworthy federal government spends the “trust fund” monies on other worthy (pork) projects. Any plan to keep Social Security afloat after next year, 2020, when there are more pay-outs than pay-ins, spells D-I-S-A-S-T-E-R: either higher taxes, less benefits or some combo of the two.

Why do we let the spin doctors and talking heads point us in the direction of Ponzi-like solutions?  We know better!

According to the Social Security Administration, this

year’s average, monthly retirement pay-out is $1,461. Per capita income for folks in their working sixties is just under $46,000. That an approximate $2,372 per month shortfall. Here’s salt for that financial wound. Most middle class adults find it nearly impossible to function off $46,000 a year. That’s why folks in the sixties and seventies toil as Walmart greeters and burger flippers.

Most department store and fast food employers consider people in their 60’s and 70’s dependable. They hire them. Let’s be very generous. Employer A pays $15/hour and promises thirty hours per week. You’re so excited an ad agency request you become the poster person for adult Depends. Imagine laboring five days a week for all fifty two weeks of the year. Now place the monthly pay stub between your thumb and forefinger. Hold that check up to the light. You’re worth $1,950/month before mandated taxes and other goodies. Thirty hours a week for all fifty two weeks still keeps you drastically short of your monthly financial requirement. Then, you get to do it all over again the following year.

Social Security is a triple whammy losing proposition.

1. The SSA website states the administration has the right to hijack cash benefits if we earn too much money. So, if you’re under age 67 and earn $1,950/month sweeping fast food floors, SSA will reduce their pay-out $1 for every $2 of gross income earned.
2. As mentioned above earning $1,950/month isn’t enough to quench the household sponge.
3. How many folks spring out of bed, jumping for joy, because they’re off to work at Burger King?

There is a viable solution to our Social Security challenge. Many baby boomers are starting their own home-based business. Most do not seek to earn millions. Rather, they choose to remain mentally and socially active, crave schedule flexibility and to earn enough to live a more comfortable and enjoyable life. Yes, there are financial rewards.

Home-based jewelry maker checking Invoice orders. Photo by Brian Thomas, BHBS staff

According to every financial advisor and CPA I speak to, home businesses provide excellent tax advantages. If the business is properly structured not only can your taxable income be greatly reduced, your net income could be smaller, thereby minimizing or eliminating any Social Security pay reduction.

Most home business operators enjoy starting their workday at half past noon, or whenever, especially if the job fulfills one of their passions. Work when/where someone orders you or for yourself. A home-based business helps boomers pave their yellow brick road to time and financial OZ.

Let’s stop playing the damn Social Security game. Get off the government’s rigid ball field. When it comes to a more financially viable and less exhausting option to retirement savings, a home business is a grand slam over FICA dollars.

Social security is my main topic of conversation, Saturday June 15, during the 8 am hour [EDT]. My guest is Geoffrey Sanzenbacher, Associate Director of Research at the Center for Retirement Research at Boston College.

Check out Brian’s Beat with Brian at 1420 WBSM-New Bedford; on-line at wbsm.com; download the free WBSM app; and when available, via WBSM-TV through the station’s You Tube channel.

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