Tom Meaglia, ChFC®

Chartered Financial Consultant

AEP®, CLU®, MSFS

Investment Advisor Representative

CA Insurance Lic. #0567507


Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750


Toll Free: 800-386-3700

Bus: 909-593-6105

Cell: 818-681-8600

Fax: 909-593-6120


Email: meaglia@earthlink.net

Website: www.meagliafinancialconsulting.com

January/February 2019

Beyond Scary Headlines

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If you read or hear dire predictions about how underfunded Medicare and Social Security are, you would think retirees will soon be in desperate financial shape. The truth is these programs have served retirees for years, and will likely continue to do so in the future. But the reality is that these programs cannot fully fund your retirement, so it’s up to you to ensure your own retirement security by balancing today's needs with saving for tomorrow.


Funding Issues
The Social Security Administration estimates its trust fund — which contains a surplus from which beneficiaries are paid — will run out of money in 2034 unless changes are made. However, continuing payments into Social Security by workers will fund more than three-quarters of payments to recipients after 2034, even without changes. The likelihood is that Congress will eventually make changes, as it has before, to ensure the Social Security trust fund is replenished.


Medicare is also funded by surplus in its trust funds. While you may read headlines about Medicare running out of money by 2026, continuing payments into Medicare’s hospital trust will fund most Part A insurance — hospital insurance — after that date. No such shortfall is predicted for Medicare’s supplemental insurance trust fund, which includes Parts B and D (prescription drug coverage).


For Your Future
While Social Security and Medicare are the safety nets of retirement, your actions will determine how financially secure your retirement will be. Before then, contribute regularly toward your retirement. Contribute at least the amount your employer matches in your 401(k) plan.


When you receive raises, promotions and bonuses, put the newfound money into your retirement accounts — you won’t miss the extra money because you never had it. If you want to save more, investigate traditional and Roth IRAs. And if it’s available through your workplace, consider contributing to a triple tax-free Health Savings Account (HSA).


As you near retirement, compare Medicare insurance policies — they may differ in price. Make sure to avoid penalties and surcharges by purchasing Medicare policies within the allowable timeframe. If you want retirement income you can count on, explore fixed annuities, which may offer you that guarantee. Talk to your financial professional to learn more.


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Investment advisory services offered through Fusion Capital Management, an SEC Registered Investment Advisor. 870 S. Denton Tap Road, Suite 250 Coppell, TX 75019
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