John, so good to see you. We're going to dive into the headlines today. A lot of people know this: Social Security benefits will be cut. We're going to talk through how much more you're going to need to save. So, the Social Security trust fund will be insolvent by 2033, and by 2035 they will have to reduce benefits by 23%.

According to a recent study from the National Institute for Retirement Security, just 31% of Gen Xers and 31% of boomers were very or somewhat confident they would have the same benefits as previous generations. Should we be worried?

Yes. Yes. They've told us this for a decade plus. A decade plus. I mean, the fact of the matter is Social Security is very different now than from its inception. We're not going to go into those details, we've done it in the past but they've been telling us, listen, there is going to be a benefit cut. So, should you be worried? Well, yeah. I don't like taking an income cut. Erin, I know you wouldn't take an income cut.

No. Yeah. Well, why would retirees, when they're most dependent on this income stream, want to take an income cut? So, for retirees or pre-retirees, you need to plan for this and you need to take control. Now, for younger people, the Gen Zs and whatnot, Erin, you know, even you and I, we need to prepare that Social Security could be completely different. I'm not saying it's insolvent, but it could be completely different.

Right? The good news, though, that silver lining, is many, many experts have said that Social Security is a fixable problem.

But until they fix that problem, we need to take care of ourselves, right? Need to have a plan. All right. So, let's be clear, as you mentioned, Social Security is not going bankrupt and will not stop paying benefits. But PensionB did crunch the numbers and concluded that workers would need to save an additional $138,000 to generate the same income based on the 4% withdrawal rate. So that means the older you are, the more money you will have to put away now. So those aged 55 only have a 12-year window to save. Explain this math.

Yeah. Well, as you can see, this is not targeting rates of return. So, if you're putting this into your 401(k), this is just the target of what you need to save to get that $138,000.

So, you know, you have to be wise. You can't, especially when you're really near the end of retirement ,if you're near that $138,000, you definitely want to dial down the risk. But again, it's compounding interest, the power of money. You can see the difference that 10 years makes. And, you know, I'm right between 55 and 45, I'm 49. But the more time you have, the less you have to put in. Not saying you should put in less; you can compound more money. But the fact of the matter is, going back to what we talked about, it's the problem, the government has the ability to solve it, but like many of our problems today, they don't.

So I encourage everybody not to depend on the government, do not depend on our politicians, right? And this is the best time to point this out because, as we're filming this, Congress and the Senate are shut down. So, go ahead and start taking care of yourself, right? Start saving that money and take control of your future, because if you don't, relying on this system, which is again drastically different than its inception, could lead to some major issues in retirement.

So let's talk through some of the best ways to save an extra $138,000. Of course, you can start by maxing out your retirement contributions and those catch-up contributions. Leverage all of those employer match programs, don't leave free money on the table. And last, of course, diversify your investments.

Yeah. And, you know, we talked about the $138,000, don't make it that daunting number. Bring it down. Listen, I'm going to put $700 away, start budgeting for it. If you're going to really follow that strict line in the sand, find a way to do the $700. You're going to put it in your 401(k), or maybe your Roth 401(k), depending on your individual situation.

Company money is free money, always take advantage of it. So, if your company is matching, try to max out that match. And then lastly, again, that last slide didn't talk about the earnings, and earnings aren't guaranteed, so you want to be diversified as you get closer to retirement and you're at that target number. You also want to dial down the risk a little bit so your plan can be more accurate, and when you transition into retirement, you actually don't want to be as risky as in your accumulation phase. We've talked about that a lot.

Right. And again, this takes action on your part. Do not rely on the government, that's the overwhelming theme here. And of course, this all underscores why it helps almost everyone to meet with an adviser, right, John? I mean, this is something that you specialize in.

Yeah, and I'm not just saying that because I'm an adviser. Listen, retirement specialists, I have done countless hours of education and conferences over the last 12 years. I've been a member of the National Social Security Association in the past. Social Security claiming- we've talked about this — people do not optimize this powerful benefit, whether it's at its current state or the reduced state of 23%.

It's an income stream that a lot of people depend on more now than ever. So you need to maximize that income stream, and that's what an adviser can help you out with. The other thing an advisor should be helping you out with, obviously, whether they specialize in retirement planning or not — is helping you diversify. I see far too often people with their 401(k)s, or do-it-yourselfers, who don't truly understand the nuances of diversification.

It's very important, especially in the volatile markets we've seen this year, right? We saw a big drop in April, then we saw a big rise in the S&P 500. Now we're kind of sideways, hoping the S&P 500 stays bullish at the end of the year. But diversification helps you get through those moments in time. And then last but not least, a big specialty in my office, aside from taxes, is developing an income stream. You want to have a predictable and sustainable income stream that's going to give you peace of mind no matter what the markets offer. And the good news is, throughout my career, there have been more and more opportunities for my clients to engage in income-producing investments that have just thrilled them in good times and bad times. They've had that paycheck. And you don't pay your bills with assets, you pay them with income, right?

So, being able to take that income stream, develop it, and also correlate that income stream with a good, maximized Social Security plan, that's really the recipe for success. But again, the ball is always going to be in your court. Everything we talk about, you can take action or you can take no action. Change is coming, and absolutely a lot of these reduced benefits are on the table, right, increased retirement age, increase on taxes. We've talked about this many times before, John.

Also, just a good reminder to everybody watching that we have a great video library on your website and on YouTube as well, John, so people can digest this information on their own time. But if somebody has questions about Social Security claiming strategies, reducing their taxes, what's the best way to reach you?

Yeah, you know, you said it, visit our website, www.goscures.com. Erin, the one thing I have absolutely loved about our couple years together is we're spreading the message of education. Yeah.

And we have all the videos there. While you're on the website, if you want to have a 20-minute phone call to talk about any general questions you may have, or if you want to schedule a planning session, a vision and clarity session, just go on to our Contact Us tab. We have a new schedule-help assistant that will help direct you in the right direction, and you can make your appointment on our website directly.

Great. John, thank you so much for your time today.

Thank you, Erin.