The “Social Security Workshop”

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One of the important pieces of money management after a spouse dies is the coordination of both the husband’s and wife’s benefits.  I signed up for a workshop last Saturday that I hoped was going to explain (so that I could understand) how the coordination would work to the surviving spouse’s best advantage. The person offering the workshop was quite knowledgeable, but had a preprinted “booklet” and was using slides that had different material on them, so I was having a hard time keeping up with the details. After about an hour and a half I had pretty much decided that this was just another presentation that did not take the audience’s comprehension into consideration when presenting the material. Because I have some experience teaching adults, I find this especially frustrating.

But with thirty minutes to go, the presenter turned to the true topic of the entire two-hour presentation: A simplistic, extremely pessimistic financial model which shows the “baby boom” bankrupting the treasury resulting in the eventual loss of the Social Security System. His solution to this challenge is to invest in annuities! (ALL of your money in annuities that would survive the collapse of the Social Security System and a stock market major adjustment).

Now, I have to admit that this is one possible scenario with the tsunami of graying baby-boomers, but I was truly incensed that his ONLY offered solution was to purchase annuities which – wait for it – he happened to sell, and he would be glad to schedule an appointment before you left that day, adding “The appointments are going fast since the classes have been so well attended.”

This very topic is one that I have been reading about for a while, especially the Social Security portion since it will be an important part of my financial stability for the coming years (and I will write about it later when I feel I can present a balanced view of facts).

BUT I can ASSURE you that investing ONLY in annuities is NOT the answer.

There are many knowledgeable people providing excellent information to assist those of us who are retiring.  There are fewer people addressing the specific needs of widows, which is the reason I have entered on this project. But PLEASE be careful when someone offers “the only solution” to a complex problem.  Buyer Beware!!