Social Security tax admission from millionaire Scott Galloway as finance expert sends strong message

Scott Galloway, New York University professor and author of 'The Algebra of Wealth,' is weighing in on the future of work, retirement, and financial security for Americans. It comes as Donald Trump 'at risk of serious health condition' as photo shows stark change.

The finance expert, who rakes in a cool $16 million a year, believes that Social Security benefits should not be available to the wealthiest Americans, including himself, and advocates for the idea of using means-testing to determine eligibility for monthly payouts.

Scott also provides an alternative way of thinking about retirement in the United States. He writes, "I want you to obtain economic security before you stop working," adding, "The sooner the better." Meanwhile, Barack Obama breaks silence on Trump's wild tariff plan with devastating eight-word comment.

The financier points to the fact that unless legislative action is taken, Social Security trust funds will run out of money around 2033 and recipients will only receive about 80% of their expected monthly payments.

In what may seem like a radical idea for fiscal conservatives, he believes that means-testing, or evaluating one's financial situation before benefits are allocated, could ensure that Social Security paychecks are being sent out to Americans who need them the most.

The professor points to the fact that most beneficiaries withdraw two to three times the mount they contribute through Social Security taxes, and argues that those who are exceptionally wealthy should not be guaranteed benefits simply because they paid their taxes.

On top of that, he believes that the upper class in the US are not taxed at a high enough rate to begin with and that they are not paying their fair share. For example, he admits that he pays a mere $9,000 in Social Security taxes each year, which is the same amount paid by someone with an annual salary of $160,000.

The tax, he claims, should be reserved for Americans who genuinely need it. And despite the Social Security Administration warning that funds may dry up soon, he does not believe it will get to that point.

"Old people keep living longer, and they vote, so we're more likely to get rid of schools, the space program, and half the Navy before we fail to fund Social Security," he explains in his book.

He provides an alternative plan for saving up for retirement: "You could apply the principles of this book and, with some luck and a lot of hard work, be living on a boat in the Caribbean by age 40, never earning another dollar," he writes.

"Once you've achieved economic security, you may decide to continue to focus on work and professional achievement. I have," he explains, "But the stress surrounding work declines dramatically when it becomes a surfboard instead of a life preserver. We perform better when we are confident."

The author says generating passive income is the key to building wealth, and that the amount of money one needs for financial security varies per individual. The key is to generate more passive income than the rate at which you burn money, which he refers to as a person's "burn rate."

"Rough out your projected expenses for a year and add them up. Bump it 20% to cover taxes (30% if you expect to live in California, New York, or another high-tax state). That's your annual burn rate."

"Now multiply that burn rate by 25. That's (roughly) your number — the asset base you need to generate passive income greater than your burn."

With the future of Social Security up in the air, perhaps its time Americans find an alternative route to planning for their futures.

Click here to follow the Mirror US on Google News to stay up to date with all the latest news, sports, and entertainment stories.