Social Security and retirement planning – How to avoid regret
Social Security is an immensely important program for the 63 million Americans who now collect benefits, but also to anyone who contributes payroll taxes with the plan to one day collect retirement benefits themselves. Russ Wiles of The Arizona Republic lists five issues related to retirement and Social Security that can cause second-guessing years from now: 1.) Don’t tap benefits early. Waiting, as long as age 70 if possible, will yield much larger lifetime monthly checks; 2.) Don’t wait too long to start saving, as it is more difficult to make up the difference as one ages; 3.) Don’t be too conservative, as in one should not avoid stocks altogether. A balanced portfolio is best; 4.) Be smart about withdrawing retirement funds, as withdrawing money from 401k plans and IRAs can trigger income tax on Social Security benefits; 5.) Have a financial cushion, as in a rainy day, or emergency, fund. Read the full piece by Wiles here.
The AMAC Foundation offers a free-to-the-public advisory service to all folks ageing into–or already in–Social Security. This service provides guidance in understanding the complexities of Social Security and the myriad rules and regulations associated with the process for claiming benefits, with NSSA-Certified Social Security Advisors available via email or telephone to discuss options. Learn more about this service via the Foundation’s website.