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.