Increasing your Social Security benefit is one of the easiest things you can do to make sure you are squared away in retirement.
Not only does Social Security grow each year with inflation, guaranteed, but because it’s taxed more favorably than other accounts, having more Social Security will reduce your taxes too.
Plus, if you strategically plan your Social Security benefits you will also leave your surviving spouse in a much better place financially.
So, given all these benefits, why, oh why, do MOST people take it at 62?
For some, it’s because they have no choice. They need the cash.
For others though, well, I believe it’s ignorance.
Hopefully, this podcast will shine some light on ways you can increase your benefit, reduce your taxes AND leave your surviving spouse much better off.
If you are using a simple Monte Carlo analysis to analyze your retirement projections, you could be setting yourself up for a HUGE disaster. Worst off, is that this disaster may occur when it’s just too late to change anything!
Why is this? Because Monte Carlo analysis doesn’t include investment fees or taxes.
As I stated repeatedly, investment fees and taxes are the biggest detriments to your portfolio strength.
So, consider using this FREE tool at Firecalc.com. While it won’t give us insight into taxes you may pay, it most certainly can allow you to adjust your portfolio for the fees you pay.
In this example I show what a retirement portfolio with a .18% looks like as compared to a more typical portfolio with a fee of 1.50%.
It’s not a pretty comparison. Not in the least.
Factor in taxes and it’s going to get even uglier. When it comes to retirement planning, ugly is not your friend; we want the prom queen. The easiest way to dance with her? Reduce fees and taxes!
For the video on this topic click here.