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Social Security and Medicare Crisis: What It Means for Your Financial Future · Earn Your Leisure

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  Speaker 2: Bloomberg projects that Social Security will run out of money
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  Speaker 2: to pay full benefits by twenty thirty three and Medicare
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  Speaker 2: by twenty thirty six. What steps can be taken to
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  Speaker 2: mitigate this impending shortfall.
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  Speaker 3: We're gonna get to the lighter conversations later. These first two.
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  Speaker 3: It goes back into the nothing. I just want to
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  Speaker 3: be very honest. I think that those benefits have been
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  Speaker 3: run out. Social Security is done for. I know people
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  Speaker 3: keep saying that that it's not true. Once again, go
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  Speaker 3: reference Chicago. That was the canary in the cold mine
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  Speaker 3: to tell you that the money wasn't there Medicare by
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  Speaker 3: twenty thirty six. That is scary. And because we don't
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  Speaker 3: have enough checks and balances to know where the money
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  Speaker 3: is going, where it's being spent, how it is being allocated,
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  Speaker 3: how it's being deployed properly. So I think in our
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  Speaker 3: lifetime we were going to have to just rest and
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  Speaker 3: realize that Social Security or Medicare will not be there.
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  Speaker 3: And if we continue to run into debt, other pension
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  Speaker 3: plans are going to go away. I remember as a
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  Speaker 3: kid when certain adults retired they were guaranteed a pension,
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  Speaker 3: then that went away, then came into four one K.
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  Speaker 3: That's some four to one ks maybe going away in
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  Speaker 3: the next ten to fifteen years. So there's nothing that
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  Speaker 3: we can do.
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  Speaker 1: What is a solution.
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  Speaker 3: We got to invest in and take care of your
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  Speaker 3: own financial house, because nobody cares about your money the
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  Speaker 3: way that you do. But but it's sad and it's
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  Speaker 3: too late. I've been beating this drum for about two years,
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  Speaker 3: and everyone said I was a conspiracy theorist, but Bloomberg
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  Speaker 3: says it sos official. Shout to Michael Bloomberg.
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  Speaker 1: I feel like We've heard this for the past couple
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  Speaker 1: of years, and it felt like we're the direct descendants
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  Speaker 1: of this, right, like eighties babies, right, they were like
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  Speaker 1: as you were growing up, as you were starting to
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  Speaker 1: work for us, they would tell you, don't worry. Social
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  Speaker 1: surity is not going to be there when you when
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  Speaker 1: it's time for you all to retire, and that we're
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  Speaker 1: looking at the numbers right within the next week are
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  Speaker 1: years a lot of us will probably be at that point.
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  Speaker 1: We've done twenty five to thirty years in the career
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  Speaker 1: and we're at the retirement age from a career work standpoint,
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  Speaker 1: not from the social security standpoint. But this is yeah,
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  Speaker 1: this is not one of those things. Again, I'm not
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  Speaker 1: sure what we do other than continue to educate ourselves,
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  Speaker 1: continue to find other ways than to rely on these benefits, right,
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  Speaker 1: whether it's open or Brokensh accounts of finding other pension plans.
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  Speaker 1: Like you said, but this is a long especially for medicare.
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  Speaker 1: When you talk about the cost of health care in
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  Speaker 1: this country, I mean, I don't even know how you
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  Speaker 1: can pay for it, Like if you don't have that,
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  Speaker 1: if you don't have health care, yeah, astronomical and even
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  Speaker 1: medicare is still an expensive course.
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  Speaker 2: I don't.
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  Speaker 1: I mean, I think it's just start planning to having
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  Speaker 1: not even discretionary outcome. But this becomes now that emergency fund.
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  Speaker 1: I know early on you used to say it was
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  Speaker 1: like sixty months, and I'm like, that seems like a lot.
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  Speaker 1: But I mean, based on these numbers, if this might
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  Speaker 1: be something that's needed, do we now adjust what the
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  Speaker 1: savings is. I don't from a financial advisorce standpoint, what do.
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  Speaker 2: You say to that? Well, I mean, at first, you know,
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  Speaker 2: this is not something that's new information. When I was
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  Speaker 2: a financial advisor, I used to tell my clients this
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  Speaker 2: because actually, if you look on your Social Security statement,
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  Speaker 2: it says it on your Sociality statement. It's been stated
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  Speaker 2: on your Social Security statement for years, but nobody really
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  Speaker 2: reads fine print. But so this, yeah, this is something
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  Speaker 2: that has been documented by the Social Security Office themselves
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  Speaker 2: for over a decade. So it's not surprising. And it
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  Speaker 2: doesn't necessarily mean that at twenty twenty three, twenty thirty three,
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  Speaker 2: that is going to be over. It's just staying at
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  Speaker 2: this pace. It will be over, but they'll probably pump
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  Speaker 2: more money into it. They'll they'll you know, I have
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  Speaker 2: very strong doubt that Social Security will end in twenty
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  Speaker 2: thirty three. That's almost almost impossible. They will put more
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  Speaker 2: money into it, and they will make it, but that
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  Speaker 2: leads to more issues because it's like, Okay, we keep
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  Speaker 2: funding and putting ourselves more into debt. But that goes
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  Speaker 2: back to the thing as far as the debt is
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  Speaker 2: already out of control. So it's a political gain that
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  Speaker 2: you know, really the politicians are the only ones that
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  Speaker 2: can kind of figure this out because they're the ones
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  Speaker 2: that control the budget. This goes back to our visit
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  Speaker 2: in Washington when we met with you know, members of
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  Speaker 2: Congress and we talk about you know, the Appropriations Committee,
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  Speaker 2: Ways and Means Committee, different things of that. These type
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  Speaker 2: of committees control the budget, where the money goes, and
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  Speaker 2: how it's allocated. And that's why it's important to be
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  Speaker 2: politically aware and take part in the political process because
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  Speaker 2: the members of Congress have the power to make the
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  Speaker 2: decisions on this, and they're the only ones that have
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  Speaker 2: the power to make the decisions on this. So I'm
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  Speaker 2: pretty sure they'll they'll kick the can down the road
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  Speaker 2: as long as they possibly can. But yeah, it's not
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  Speaker 2: it's not encouraging that, you know, financially we're on a
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  Speaker 2: path way of insolvency. That's never that's never good, right.
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  Speaker 2: But ultimately, there's only a few ways that you can
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  Speaker 2: solve these type of issues. You either, you know, increase revenue,
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  Speaker 2: which most of the time that's by increasing taxes, or
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  Speaker 2: you cut spending. So Democrats want to raise taxes, Republicans
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  Speaker 2: want to cut spending. I think you got to do
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  Speaker 2: a combination of both. Yeah, and military spending definitely something
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  Speaker 2: that I think there's spend way too much money on,
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  Speaker 2: especially overseas, over and overseas military practices, overseas financial aid
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  Speaker 2: to other countries. There's definitely something that could potentially, you know,
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  Speaker 2: be cut down on as a line item for sure.
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  Speaker 2: But it's all in the hands of the politicians. It's
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  Speaker 2: a political it's a political game. But as far as
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  Speaker 2: how much money you should have in savings, I mean,
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  Speaker 2: you should definitely have at least six months in savings,
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  Speaker 2: but you know, a year for sure if you can
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  Speaker 2: to be on the safe side, that's something that's helpful
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  Speaker 2: and beneficial. But savings is relative. I mean, if you
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  Speaker 2: have money in the stock market, technically that's a form
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  Speaker 2: of savings as well, right, like, so you should you
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  Speaker 2: should have as much money as you possibly can quote
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  Speaker 2: unquote saved. I mean just in a regular bank account
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  Speaker 2: a year, probably no more than a year. But after that,
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  Speaker 2: you know, you put money into a brokerag account, you
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  Speaker 2: put money into stocks. In an emergency situation, if you
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  Speaker 2: need to take then you can. You can take from
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  Speaker 2: that as well. So you want to have as much
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  Speaker 2: money you know, liquid, I would use that as a
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  Speaker 2: better word than savings. You want to have as much
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  Speaker 2: money liquid as you possibly can because it just gives
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  Speaker 2: you flexibility when anything, anything can happen, and you know,
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  Speaker 2: if you're not liquid, then you're going to be in
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  Speaker 2: a very difficult space.
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  Speaker 3: And the truth is even when you get to a
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  Speaker 3: different level, even sixty months, like five years ago, is
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  Speaker 3: by fast. There's companies that have hit a route for
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  Speaker 3: run for ten years. But if you look at how
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  Speaker 3: much money they have two point seven trillion in social
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  Speaker 3: security left, that's the value. That's the market cap of video.
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  Speaker 3: What in video's at two point nine So everyone's paid
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  Speaker 3: in all this time and in the course of ten years,
• 9:21
  Speaker 3: and videos has had more value than security. That money
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  Speaker 3: probably won't be there by twenty forty. What do I know?
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  Speaker 3: And every year we do the show makes a case
• 9:31
  Speaker 3: for why you need this much money stored away. Inflation
• 9:35
  Speaker 3: is getting higher. We won't talk about the corruption, the
• 9:40
  Speaker 3: reallocation of money. It's a lot of tricky stuff going
• 9:43
  Speaker 3: on investing yourself, to my thinking. On top of that,
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  Speaker 3: you have to have your money work for you. There's
• 9:52
  Speaker 3: no more like. The disparity between rich and poor is
• 9:55
  Speaker 3: getting higher than ever. We'll talk about it later, but
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  Speaker 3: now we have a poor per since recession. We're gonna
• 10:01
  Speaker 3: put all the debt on those that make less than
• 10:04
  Speaker 3: sixty grand a year, and then everyone who's doing well
• 10:07
  Speaker 3: get elevated higher. I know I sound like Bernie Sanders,
• 10:09
  Speaker 3: but it is getting tricky. And as an entrepreneur you
• 10:13
  Speaker 3: have to be able to weather a lot of storms,
• 10:15
  Speaker 3: and sometimes the storm may lasts longer than the year. Sure, yep, yeah,
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  Speaker 3: I'm looking at this start.
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  Speaker 1: For the US government spending fiscal year to day twenty
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  Speaker 1: twenty four, the number one category is Social Security nine
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  Speaker 1: hundred and sixty billion. Medicare is number two six hundred
• 10:32
  Speaker 1: and seven billion. We had interests six hundred and one billion,
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  Speaker 1: Health five hundred and ninety five billion, and the National
• 10:38
  Speaker 1: Defense five hundred and seventy six billion. Interesting. Interesting, I'm
• 10:44
  Speaker 1: trying for that. Where education is here? Oh here it
• 10:46
  Speaker 1: is down here Number eight Education, Training, Employment, and Social
• 10:50
  Speaker 1: services one hundred and forty one billion.
• 10:53
  Speaker 3: Yeah, a lot of key gonna get their money no
• 10:55
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