Retirement Examined

The weekly email that keeps you up to date on exciting Retirement topics in an enjoyable, entertaining way for free.

The Looming Social Security Crisis: An Urgent Issue

by Eric Seyboldt 

The landscape of American retirement is nearing a significant disturbance. Social Security, the cornerstone of financial security for countless retirees, is on the verge of collapse. For years, this program has served as a vital support system for the elderly, the disabled, and survivors, but now its stability is dangerously eroding. The issue of Social Security's sustainability has transcended academic debate, becoming a pressing concern that could disrupt the retirement expectations of both present and prospective retirees.

The warning signs are unmistakable: Social Security cannot continue as it presently functions. According to the annual report by the Social Security Trustees, the program's trust funds are expected to run out by 2034. If nothing changes, benefits could be reduced by as much as 23%. Such a reduction would severely impact many retirees, leading to significant financial strain.

This crisis is driven primarily by demographic shifts, notably the aging of the baby boomer generation. As these individuals retire in large numbers, the balance of workers contributing to the system versus those receiving benefits has dramatically declined. From a ratio of 16 workers per beneficiary in 1950, the figure has dropped to just 2.7 today. This imbalance underscores the critical need for reforms.

The responsibility for averting this disaster rests heavily with Congress, where political stagnation and division have hindered progress. Efforts to elevate the retirement age, boost payroll taxes, or alter benefits have faced robust opposition, making it challenging to achieve comprehensive reform. Legislative delay, driven by short-term political priorities, only compounds the difficulty of implementing necessary changes.

The consequences of inaction are profound. Without resolution, future retirees might have to significantly reduce their living standards, a change that would not only affect them but also place additional burdens on social services, increase the poverty rate among older adults, and deepen economic disparities.

So, what steps can be taken? A combination of small increases in retirement age, linked to life expectancy, and progressive adjustments to the cap on taxable income could help sustain the system. Implementing means-testing for benefits could ensure that those with greater financial capacity receive lesser benefits, preserving resources for those most in need.

The urgency to act is now. The impending insolvency of Social Security is a critical issue requiring prompt and decisive legislative action. By setting aside partisan conflicts, Congress can pursue sustainable solutions to safeguard the financial security of future generations. Complacency is no longer a viable option—the risk of Social Security's collapse is too great, and the time to defuse this impending crisis is running out.

Reach out to us for a complimentary, 10-minute consultation call. Let's explore together how we can help you protect your assets, ensuring your golden years are as fulfilling and worry-free as you’ve always imagined. Email Eric at [email protected] or give us a call today to schedule your consultation. Let's make your retirement dreams a reality!

Understanding Gold IRAs and the Modern Gold Mining Landscape?

by Eric Seyboldt

A Gold Individual Retirement Account (IRA) presents an appealing option for investing in physical gold, safeguarding against economic instability. While standard IRAs primarily contain paper assets such as stocks and bonds, an IRA supports the acquisition of actual gold along with other valuable metals like silver, platinum, and palladium. This adds an extra layer of security and stability to retirement savings.

Legislative Origins

The framework for Gold IRAs was set with the inception of the Employee Retirement Income Security Act (ERISA) in 1974, which marked the birth of Individual Retirement Accounts (IRAs). The capability to include physical gold and other precious metals in these accounts came with the Taxpayer Relief Act of 1997. This change allowed investors to expand their retirement holdings past the usual paper assets, presenting a strong option for safeguarding wealth over time.

Current Developments in the Gold Mining Industry

Recent shifts in the gold mining sector have been profound, particularly with China’s assertive efforts to dominate this industry. The Chinese strategy includes the outright purchase of gold mines worldwide, ensuring a steady supply for the foreseeable future and enhancing its influence over the global market.

China’s government-supported companies are actively acquiring mining operations in Africa, South America, and Asia. This rapid expansion is strategically aimed at bolstering China's gold reserves necessary for its economic and geopolitical plans. Through this control over the production chain, China can sway gold prices and its availability on the market, which may disrupt the current market stability.

Controversies and Implications

China’s approach to expanding its mining capabilities has sparked notable worldwide concerns. Issues such as poor labor conditions, environmental harm, and neglect for local communities associated with these mining projects have led to international uproar. Critics contend that China’s investment strategies are geared more towards profit rather than sustainable and ethical mining operations, potentially causing lasting harm to environments and communities.

The geopolitical effects of China's supremacy in the gold mining realm are also significant. With control over a major portion of the global supply, China can manipulate gold prices and use this advantage in economic and political discussions. This concentration of power leads to anxieties about possible market manipulation and economic pressure tactics.

Additionally, the secrecy surrounding these mining deals raises doubts about their transparency and fairness, contributing to a decline in trust in the international gold market.

Conclusion

Investing in a Gold IRA offers a secure and varied method for enhancing retirement funds, with legislative support dating back several decades. Yet, the evolving scenario in the gold mining industry, especially concerning China's assertive purchase tactics, introduces challenges and contentious issues. Investors need to consider these global dynamics and ethical concerns as they weigh the potential benefits of gold investments against the implications of market consolidation.

Fixed annuities can be an essential component of a well-rounded retirement strategy, offering security, predictability, and efficiency in financial planning.

Here are current fixed annuity rates and their durations from Top A-rated carriers (subject to change at any time, not FDIC insured):

Rates Are Holding Steady!

3-year: 5.70% (under $100k Deposited)

3-year: 5.85% (over $100k Deposited)

5-year: 5.70% (under $100k Deposited)

5-year: 6.10% (over $100k Deposited)

Please feel free to email Eric at [email protected] if you’d like to ask any questions or request information on these fixed annuities or other retirement topics that are on your mind.

REAL ASSETS, Invest Like the Ultra-Wealthy 

We Make it Easy to Add Gold or Bourbon to Your Portfolio

In light of current economic instability, an increasing number of astute investors are pivoting towards tangible assets to protect their retirement funds. Assets like physical gold and even unconventional ones such as barrels of bourbon are gaining prominence. These investments offer a robust buffer against the repercussions of rampant currency printing and inflation, and they also serve to diversify an investment portfolio in times of economic stability.

Historically, in periods of financial downtrends and market instability, tangible assets have outperformed other investment types. They offer a reliable barrier against potential economic downturns. Integrating tangible assets into your investment strategy is not only prudent but can also be lucrative.

Given the present economic uncertainties, allocating resources to tangible assets could be a strategic move to preserve the stability of your financial outlook. Curious about how investing in these tangible assets can enhance your portfolio? Join me in delving into the possibilities of Real Assets and laying the groundwork for a prosperous and secure retirement.

Allocating funds into the asset class known as “Real Assets” may be a strategy that you should consider.

Ask us how to Rollover a portion of Your IRA or 401k To A BOURBON IRA (www.bourbon.fund/how-it-works/) or a GOLD IRA (see link below) and:

• Safeguard your assets from the collapsing dollar

• Incorporate the ‘REAL ASSET’ class into your portfolio like the ultra-wealthy

• Hedge against the current high-inflation conditions

• Protect your retirement assets against economic crises

Just get in touch. We make it easier than ever.

Feedback or Questions?

You’re invited to get in touch with us if you’d like to find out how the Novus Financial Group can help you on your journey to a happy, fulfilling life in Retirement. 

We have a lot of great information, as well as podcasts from our radio show ‘The Financial Insider’, and tools on our website - www.novusfg.com.

[email protected] www.novusfg.com [email protected]

Office: 614-943-2265

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Investment advisory services are offered by duly registered individuals on behalf of CreativeOne Wealth, LLC a Registered Investment Adviser. CreativeOne Wealth, LLC and Novus Financial Group are unaffiliated entities.

The content we provide here isn’t financial advice and cannot be taken as such. Please speak to your financial advisor before making any investment decision. Also, note that every investment comes with its risks and drawbacks. Lastly, we would like to remind you that past results cannot guarantee future returns.

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