Is there a problem with Social Security in the USA? Here’s a little bit of advice :

By now you’ve probably already heard that Social Security is in a little bit of trouble. There’s probably no need to panic, but you should understand that the younger you are, the more different it will probably be. Who knows exactly what will happen?

Hopefully, you’ve also taken the time to figure out what you’ll do to pay for things in retirement. Because Social Security may not be there, here are a few alternatives:

1. Win the lottery
2. Inherit from your rich aunt who only loves you
3. Marry rich
4. Save a little money for yourself

Of all these options, marrying rich is probably the best choice. However, if you want to play the odds (and stay on your current spouse’s good side), you should probably start saving money.

Nobody is going to do it for you. All it takes is for you to make the decision to start saving and investing. This is not rocket science, so keep it simple. Here’s the secret formula:

1. Figure out how much you’ll need to save
2. Save that much
3. Invest it adequately — you don’t have to knock the cover off the ball
4. Enjoy the present — don’t stress to much about the future

Now, you have to do it yourself, but you don’t have to do it by yourself. What’s the difference? You have to actually decide to take action, and take the money out of your budget each month. However, you can get help on steps 1, 3, and 4 (you might even get help on step 2 from your employer!). The Web is full of financial calculators and financial advice — some of it is even good advice. You can also get help from financial advisors and folks who’ve been down the road before you.

You should be careful about who you listen to, because there is some bad advice out there. I heard a great way to help weed out bad economists (but I can’t remember who said it), and I think it’s relevant to financial advice as well. She said something along the lines of: The more famous a person is, and the more certain they seem to be, the more likely it is that they’re wrong. Avoid anybody who makes broad general statements on what you always or never need, and watch out for financial hype.