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There's no good news on Social Security.
In fact, the news that recently came out was worse than expected. Retirement in America has a whole new meaning now. And that's not even as bad as it gets…
Here's what's really going on with Social Security, the lie retirees have no idea they're facing, and the only way to prepare for your own retirement.
$3 Trillion Worth of Lies
Last week, the trustees of the Social Security Trust Fund came out with revised statements about the trust backstopping the so-called "entitlement" program known as Social Security.
You know Social Security – the retirement program we pay into and our employers pay into that our generous politicians call an entitlement, as if we're entitled to our money eventually, thanks to them.
That entitlement program, which we pay into in the form of payroll taxes, goes out to beneficiaries collecting payouts now, and if there's more money collected than paid out, that gets "invested" in the trust fund.
That trust fund supposedly has $3 trillion in it.
Well, last week, the trustees said that they're going to have to dip into the fund to pay benefits because there's not enough income flowing in to offset payments to current beneficiaries.
That's not good, because in last year's annual report by the trustees on the health of the trust fund, they said they wouldn't have to dip into the piggy bank for another four years.
Today, over 61.5 million Americans (and apparently others, too) get Social Security benefits.
What's happening is there are fewer workers getting their paychecks tapped by payroll taxes to pay beneficiaries. In 2007, there were 3.3 workers contributing money for every one beneficiary. In 2017, there were 2.8 workers working to help pay benefits to retirees.
Either the trustees are idiots and can't do simple math, or they're liars.
Start the Countdown: In just five days, you could have a fat check for $23,441 in your mailbox. The best part is, it's just one short phone call away. Over 80% of eligible seniors may be entitled to this cash. Are you one of them?
Technically, they're not complete liars, in that the trustees of the Social Security Trust Fund are actively lying to us. But there isn't $3 trillion in the Social Security Trust Fund.
There isn't a single penny it.
One way to explain how you'll know it's a lie is by looking back at what happened in the summer of 2011.
With the threat of the government shutting down because a debt ceiling vote was being kicked around, President Barack Obama answered CBS's Scott Pelley's question about whether the president could guarantee that Social Security checks would go out on Aug. 3, the day after the government was supposed to reach its debt limit.
President Obama answered, "I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it."
What the budget crisis that summer exposed was the lie about the solvency of the Social Security Trust Fund.
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains.Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.