When to take social security is an important question. You don’t want to get it wrong. This article answers the question – Should the Wealth Take Social Security ASAP?
Client Questions
Hi Rich, I’d like your thoughts on this article. I know we have discussed this issue many times and have concluded that waiting until full retirement age is the right thing to do.
Thanks, J
The Article
Kiplinger shared an article in their Smart Insights from Professional Advisors section. It is titled Based on History, Why Wealthy Should Take Social Security ASAP!
My Response
Hi J
My initial thought was What a brilliant marketing piece towards high net worth prospects. As I read his rationale he says:
clearly there is some risk for high-income retirees that they could see some reduction in benefits down the road, due to changes Congress might be forced to make to shore up the system
This to me is a fear-based decision on what “might” happen. I’d prefer to stick with the planning decision for one to wait to collect at 70 and the other full retirement age for the following reasons:
- The survivor benefit of $46,656 if something happens to one of you is better than $26,426 you’d get if something happened to one of you and you started at 62.
- Your Plan Probability of Success increases from 77% to 89% by using a social security optimized strategy.
- You can still do Roth Conversion Tax Planning with your IRA rollovers when your income is lower and not elevated by pension AND social security income.
Takeaway
We don’t invest in markets based on fear. We don’t try to time the market. Like investing, these reasons are analysis and not fear-based decisions.
