Today’s Hack:
Myths, rumors, and misunderstandings are pervasive in the world of Social Security. How do you know what to believe and what to ignore? On this show, we’ll clear up the top 5 misunderstandings about Social Security.
Other Retirement Facts:
Social Security is an important piece of many retirement plans, but plenty of people have trouble understanding everything about the program. Much of that can be blamed on myths and rumors that are floating around.
On this episode of Phil’s Tax Hacks, we want to help clear up five of the biggest misunderstandings we hear from clients when it comes to Social Security. Here’s what we’ll discuss:
- Is it going broke?
- What age is best to begin?
- Can the Social Security Administration office help?
- Taxes
Like other aspects of your retirement, Social Security requires a plan. You need to know when you want to claim your benefit because you really only get one chance, and there are a number of factors that affect that decision. An advisor can walk you through everything, and we’ll try to help you with some of that today.
This show will also feature two questions from listeners. The first deals with real estate properties and how to re-invest the proceeds from a sale. The second is about whole life insurance and how long you’ll need that policy for a child.
0:52 – Is Phil ready for Christmas?
2:26 – On to our main topic on Social Security Misunderstandings
2:39 – No. 1: Social Security is going broke
6:42 – No. 2 and 3: Starting early is best. Waiting as long as possible is your best strategy.
8:53 – No. 4: The folks at the SSA office can help you choose the best claiming strategy or yourself.
10:42 – No. 5: You don’t have to pay taxes on Social Security.
12:36 – Mailbag question: I’m selling one of my rental properties soon and don’t have plans to buy another one. What’s the best thing to do with the money from that sale?
14:12 – Mailbag question: My parents bought a whole life insurance policy when she was born and we’ve been paying for it since they passed away. Now she’s about to graduate college. Should we keep paying for this because it’s not cheap?