Posted March 6, 2023

Most individuals in or near retirement have three financial legs to support them in retirement: Social Security benefits; qualified retirement savings [401(k), IRA, 403(b), etc.] on which taxes have not yet been paid; nonqualified savings and investments on which taxes have been paid on the principal and possibly some or all of the earnings. By carefully coordinating the use of these three sources of money, the typical retirement-minded couple can add up to 20% to their after-tax income and afford a better retirement lifestyle. Unfortunately, most couples in or near retirement overlook the importance of coordinating the uses of their available money. The results are higher tax bills and lower lifestyles in retirement. Both can be avoided.

Social Security benefits are an entitlement promised by the federal government if you or your spouse paid enough into the Social Security fund during your working years to qualify for benefits. While Social Security is not guaranteed by law, it is backed by the promise of the U.S. government and not fulfilling this promise would be political suicide for members of Congress. Contrary to lively debates about the future of Social Security, in all probability lifetime Social Security benefits will continue indefinitely. However, to keep the program solvent there may be measured changes in the taxation of benefits, adjustment for inflation, additional taxes on workers and other changes potentially detrimental to retirees. Click Here  

 Click Here for a 3-Minute Video on Social Security Basics

• A statement of your expected Social Security benefits in retirement can be obtained HERE 
• You can also calculate future benefits HERE .

Social Security benefits are paid until death and in some cases paid to certain dependents after your death; therefore, the decisions made about Social Security will have an impact throughout your lifetime and possibly for the remainder of a loved one’s life.

Financial Freedom Group can help educate people nearing retirement better understand Social Security and create a personalized retirement income plan to maximize their Social Security benefits and receive enough income to continue living comfortable in retirement. We use a co-planning approach with you and your spouse using our world-class proprietary software system to help you decide the best benefit claiming strategy.