Blog | CB Investment Management

Social Security And Medicare Horror Stories Need Proactive Action

 Social Security and Medicare are crucial benefits that so many depend on as they go into their most vulnerable time of life. However, there are growing problems with both systems that need urgent proactive attention, even years in advance of retirement.

 What is at stake? Your entire social security check, and even worse. Much depends on how you organize your financial affairs. There are remedies and solutions, but the awareness about these issues is remarkably low, even to most Financial Advisors and CPAs.

The scale of the problem is already substantial, and it will continue to grow. For example, the IRMAA impact, which applies to medicare benefits, is expected to yield 355 billion in tax expense over the next few years. Has anyone told you about the IRMAA tax?

“what’s going on under Social Security’s hood makes a mockery of the system’s title, specifically the word “security.”  Action is the Only Reaction.” Larry Kotlikoff

 Don’t rely on your financial plan to have allowed for these horror stories. There is no guarantee that widely adopted financial planning tools even cover these issues. In fact, clearly many do not. 

Unless you take charge and find reliable professional sources, you may be much more exposed than you realize.

Even aside from the IRMAA tax, “Social Security Horror Stories” lists seven nightmares, ten scams, and six takeaways. Make sure you understand these issues in depth and take the appropriate steps with authentic professional advice to protect yourself.

The IRMAA tax relates to the Schedule B and Schedule D parts of Medicare and it is expected to continue to rise into the future.


The IRMAA tax relates to the Schedule B and Schedule D parts of Medicare and it is expected to continue to rise into the future.

For a deep dive into how this works and the degree to which it is still unknown here is a video description.


Here is the video on 60 minutes about “Social Security Horror Stories”.Larry Kotlikoff and Terry Savage.


This new book reveals invaluable insight into what can happen inside the Social Security system. 

The list below gives great insight about some of the issues that can arise. Fortunately there are a number of remedies and actions you can take to address the problems. It is well worth taking a look at the book and deciding what you need to do, or require from your professional advisor.

Part 1     Social Security Nightmares
·       1 Nightmares by the Numbers
·       2 The Nightmare Claw in Your Mailbox
·       3 Welcome to Clawback Social Security Hell
·       4 Terrorizing Teachers and Other Public Servants
·       5 Impoverishing the Disabled
·       6 The Claw from the Grave
·       7 Ending Social Security’s Financial Abuse
Part 2     Social Security Scams
·       8 Social Security’s Foundational Scam
·       9 The Use-It-or-Lose-It Scam
·       10 The Widows Scam
·       11 The Retirement Trap Scam
·       12 The Contribute-for-Nothing Scam
·       13 The Benefit Taxation Scam
·       14 The Take-Your-Benefits-Early Scam
·       15 The Crazy Calculator Scam
·       16 The Employer Contribution Scam
·       17 Social Security’s Sexism Scam


Across the board, investors have to be vigilant about the level of best practice they are receiving from their financial advisors. This now stretches beyond investing that now has to navigate through increasingly dysfunctional policy and ever more distorted and unstable markets, through best practice financial planning software,  to even tax planning years in advance. 

Unless these issues are spotted quickly and timely remedies implemented, investors may be exposed to a range of significant risks they are not even aware of. Unless you remain vigilant about these kinds of risks, or have an advisor that you are confident will discover, notify, and resolve important developments, your financial situation could be much more at risk than you realize.

Understanding Best Practice across all aspects of Financial Services is becoming more important as the financial system becomes ever more strained and challenging.


Best Practice is a matter of your Best Interest.

Education and a Commitment to Informed Consent is an Obligation.

Chris Belchamber is an IRMAA Certified Planner

Medicare’s IRMAA impacts every retirement plan. Learning how to mitigate it is available via IRMAA Certified Planners designation.

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