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Ideas for Income Investors. High Dividend Stocks, Mutual Funds etc.
4 Dividend Stocks to Avoid The Social Security Blues
Posted by: Dividends4Life (IP Logged)
Date: January 9, 2013 03:46PM
As a fiscal conservative, the direction of our country concerns me. With the current administration's primary focus on fixing the budget deficit with higher taxes on the "wealthy," rather than a combination of higher revenue and meaningful spending cuts, our country is left in a perilous situation. I am reminded of the following quote:
"The problem with Socialism is that eventually you run out of other people's money."
— Margaret Thatcher
If you have followed the U.S. Social Security saga over the last several years, you know it is projected to run out of money soon. As it turns out "soon" just may be much sooner than previously expected. To make matters worse, it has been "broke" for some time, but through creative accounting that would land a private-sector CFO in jail, the government has been able to keep the appearance of solvency.
Here are some important facts about Social Security:
Quote:Do you really want to bet your retirement on a system like this? I certainly don't. When planning for retirement, my underlying assumption is that Social Security will go broke before I ever receive a dime. Like everyone, I will need an income during my retirement years. I am currently planting the seeds for that income with high-quality dividend stocks that have a long track record of increasing their dividends each year. Below are some blue-chip dividend stocks that eventually end up in most income investors' portfolios:
Quote:As for Social Security running out of money, people will be paid what was promised since the government can print all the money it needs. However, what was promised may not be enough after inflation, particularly if a lot of money is printed.
Full Disclosure: Long KO, JNJ, GPC, EMR. See a list of all my dividend growth holdings here.
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Stocks Discussed: KO, JNJ, GPC, EMR,