Ted Bauman explains that social security is not the only option for retirement. Of course, politicians will always say how much they are going to help social security. This is because many older people who are on social security are potential voters for those politicians. They want to win their votes. Therefore, they will say or do anything to make them happy. They will promise them social security benefits. However, another option that would help people retire comfortably is setting up a retirement account whenever someone is born. Read more articles on ezinearticles.com
If instead of social security, the government would deposit just seven thousand dollars in an account towards a newborn’s retirement when that person is born, then the account would grow every year until it would have a million dollars by the time that baby turns seventy years old. They would be able to live for many years extremely comfortably.
Of course, this is not a foolproof plan. One problem is that things can happen that would disrupt it. Seventy years is a long time, and many things can change. Things can go wrong. Perhaps major changes will occur in the economy that would take away the benefits of the plan. Of course, the plan will not be put into place in any case, simply because politicians do not see any benefit of appealing to babies. Babies can not vote. They want to appeal to older people and will do all sorts of things for them.
However, Ted Bauman explains, that doesn’t mean that the plan is not a good one. It is a sound plan. The truth is that everyone can open a Roth. Young teenagers can do it with their babysitting money. Young people can do it with the money that they are earning from their first job. It is a good idea to do it, because it will help them save for retirement. Yet they do not do it, because they want to use the money now instead of planning ahead.
However, Ted Bauman suggests that as a parent, you can help your kid set up an account. You can be the one that will help them be safe in their retirement, long after you are gone. Your contributions would be considered a gift, but they would be exempt from gift taxes.
Ted Bauman, the editor of The Bauman Letter, has decades of experience in the financial market. He is also an experienced investor.