What Obama's Budget Speech Means for Your Retirement
In a speech at George Washington University today, President Obama outlined his proposal to cut the federal deficit by $4 trillion in the next 12 years.
And with $65 trillion in current unfunded liabilities for Medicare, Medicaid and Social Security, it should be no surprise that cuts to these programs are in the works.
Medicare and Medicaid spending alone amount to $12,000 a year per recipient right now. At the current rate, that amount will balloon to $44,000 a year by 2040.
Indeed, according to a study done by Mary Meeker from Kleiner Perkins Caulfield & Byers, the Congressional Budget Office reports that if nothing is done about entitlement and debt, "...entitlement and net interest payments combined will equal all federal revenue by 2025, just 14 years from now."
It's not certain how much the President's plan will reduce Medicare and Medicaid spending. However, it is clear that American's will have to pick up more of the tab for their medical expenses in retirement. And that means Americans must maximize their savings and their investments.
Many investors don't realize it, but dividend payments account for nearly 70% of stock market gains. And dividend investing is a much more reliable way to grow your nest egg.
Right now, top American companies are increasing their dividend payments to shareholders at a record pace. To discover how you can plan for your retirement with top paying dividend stocks, including a telecom paying over 10.8% and a bank paying 8.6%, click HERE.
