Today’s Hack:
Are you understanding all of the options when it comes to Social Security? Or do you feel like retirement and Social Security always coincide? Today we take a look at this important piece of retirement income.
Other Retirement Facts:
When it comes to Social Security, 65 is the most popular age to begin to claim it. In fact, 40 percent of men and nearly 35 percent of women claim Social Security at 65. Is this the right decision?
Do you have a strategy around claiming Social Security or just assume it will occur the same time you retire? Have you done the math on how much money you could get from Social Security based on what age you begin to take it? Without knowing your life expectancy, it’s hard to predict just how long you should wait or how early you should start claiming Social Security.
Another factor to keep in mind, are you still working and earning income? Consider your current income as that can play into your decision. Do you understand what the rules are if you are still working? It might make sense to hold off on claiming Social Security a bit longer depending on how much you make at your job.
Do you understand how you will be taxed? Social Security is often misunderstood when it comes to taxes. Is your total planning process factoring in the taxes for Social Security vs. the taxes you would pay if you withdrew from other assets first? Determining the best order to withdraw from what asset can make a significant difference over the long-run.
How does Social Security fit into your retirement plan?
0:36 – Let’s reframe your Social Security decision.
3:25 – How much money can you get from Social Security?
5:27 – It’s hard to predict your life expectancy.
7:00 – Are you still working?
9:59 – What are the taxes?
10:58 – What assets should you use first?
Thanks for listening! We’ll be back with another episode next week.
A Quotable Moment:
“Retirement and Social Security claiming aren’t the same. You can retire, but that doesn’t mean you have to turn on Social Security. Maybe there is a better age or option for you that will fit in your scenario.“
-Phil Putney