Maximizing Benefits via a Bridging Strategy - Smart Money Minute
Many folks looking ahead to the decision on when to begin drawing Social Security benefits often seek ways to make their eventual monthly payment as high as possible, and most financial advisors tell them it’s simple: wait until age 70. For some, that’s easier said than done though, since there’s an eight-year gap between age 62 and completion of the delayed retirement credit cycle. If leaving the workforce is the objective, then alternative income sources obviously need to be realized to make it work.
Here’s where a “bridging” strategy comes into play, and an article by certified financial planner Brandon Renfro appearing today on the Smart Money Minute website illustrates how this approach can work. In this analysis, Renfro explains how a conservative rate of withdrawal from a deferred compensation account can fill the gap while, depending on the balance available at the start, minimizing the risk of fully depleting reserves. The trick, of course, is to build the bridge first with a balance high enough to allow for withdrawals of a size that fits the need after the paycheck stops.
Since Renfro presents the details in his analysis, it’s fairly simple to plug one’s own numbers into the equation in order to see if a bridging strategy would be viable for you. Check out his article here.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.