Last week in its annual report, the US government reported that Social Security's long-term, unfunded liability now exceeds $50 TRILLION.
Moreover, they state that the Social Security and Medicare trust funds will run out of money in 2034.
This is the government's own calculation.
Bottom line: The younger you are, the less you should count on Social Security in your retirement plans. You must take matters into your own hands and save independently for retirement.
But that's easier said than done, right? The traditional concept of 'saving for retirement' is to set aside some money from your monthly paycheck, and put it in something like an IRA.
That works fine for some people. But what if you simply don't have any more money from your paycheck to save?
Or what if you've already hit the maximum amount you're allowed to contribute to a conventional IRA?
Fortunately, there are great solutions. We've written about SEP IRAs in the past. But there's another structure I'd like to discuss called a Solo 401(k).
A Solo 401(k) is an incredibly flexible, robust retirement structure that allows you to set aside potentially tens of thousands of dollars of income from a 'side-business' each year.