May 31, 2019
Social Security is a complex topic, and it's surrounded by
several misconceptions. We want you to avoid mistakes that could
cost you thousands of dollars. On this edition of the podcast,
we'll examine eight crucial questions surrounding Social
Security.
What You'll Learn:
5:55 – When Am I Eligible To Receive My
Benefits?
- Everybody eligible can receive Social Security benefits
starting at age 62.
- Age 70 is the latest you can wait before taking Social
Security.
- The longer you wait to begin withdrawing your benefit, the
larger your benefit will be. However, it's not always best to wait
that long to begin taking your benefit. You have to examine your
circumstances.
- Widows and widowers can begin collecting a benefit at age
60.
6:30 - Am I Eligible For Additional
Benefits?
- There is a disability component to Social Security.
- Don't over look this component. Do the research to see whether
you might be eligible.
7:17 - Will The Social Security Administration Help Me
To Claim My Benefits?
- In short, no. They aren't going to hold your hand and offer
personalized advice on how to maximize your benefits.
- They'll tell you how to fill out the forms, but they can't
tailor advice to you.
- You need an advisor to help determine the best strategy for
your Social Security benefit.
8:10 - Is It Better To Delay Taking My Social Security
Benefits Or Take Them Early?
- This is a classic debate. The longer you wait, the larger your
benefit will be. However, who's to say you'll live long enough to
make waiting worth it?
- The answer to this question depends on so many other factors.
Consider your other assets, your family history, and your needs in
retirement.
14:08 - Do I Have To Pay Taxes On My Social Security
Benefits?
- You might. You might not. You could pay taxes on up to 85
percent of your Social Security benefits.
- Whether your Social Security will be taxed is dependent on the
amount of other income you're generating.
- Making your portfolio more tax efficient can help to alleviate
your tax burden.
15:41 - What Happens To Our Benefits As A Couple When
One Spouse Dies?
- If one spouse dies, the smaller check goes away. Sometimes, we
set up an extra account to replace lost income.
17:03 - If I Continue Working In Retirement, Can I Still
Collect My Benefits?
- If you earn too much, you might incur an earnings penalty. If
you earn more than $16,000 in any given year, you'll end up having
to give back some of those earnings.
- Once you reach the full retirement age, there's no limit on the
amount of money you can make.
18:28 - Is Social Security Going To Go Broke And Leave
Me With Nothing?
- Joel doesn't believe the promise of Social Security will be
broken for anyone over the age of 55. However, he does suggest
younger folks might not be able to count on Social Security
benefits in the future.
- Retirement planning requires you prepare yourself even amidst
financial uncertainty.
Final Thoughts:
“I wouldn't worry about Social Security going broke if you're
older. If you're under age 55 or 50, boy, I would probably make
sure you're saving enough, so that if the nature of Social Security
changes, you have enough to cover yourself in retirement.”
– Joel Johnson
Additional Resources:
ScheduleYour Money Map Review: http://retire.johnsonbrunetti.com/contactjohnsonbrunetti
For further exploration of this topic and additional resources,
check out our blog here: https://johnsonbrunetti.com/8-popular-questions-surrounding-social-security/