BY: Bill and Cindi Porter
Amazingly, the laws affecting Social Security are even more numerous and complex than those for income tax. The 2,728 rules also have more than 100,000 explanatory rules. Within a few years of retirement, most Americans are aware of the necessity to project their income needs for the day when their paychecks will cease, and measure those income needs against the combined income potential of their nest egg, pension (if applicable), and Social Security. Most people begin to focus on their investments, pension, and risk tolerance. However, the Social Security component of the plan is often given little thought. That can be a huge mistake. It is one of the few retirement items that can truly offer choice, flexibility, guarantees – and predictability. A wise choice – based upon personal circumstances – can result in tens of thousands of extra retirement dollars for both you and your family. Yet few Americans assess all of their Social Security options. Not taking the time to understand the many Social Security choices is like being too busy to check if your portfolio is invested well, if there is enough oil in your car, or if there is enough money in your checking account. The consequences of not paying attention may be significant. When Social Security was first introduced the average American was lucky to live a few years after reaching age 65. Now the average retiree may live a few decades beyond the age of 65. Retirement income that is guaranteed for life is the foundation of any retirement plan. Social Security, pensions, annuities and other forms of “lifetime-guaranteed-payments” must each be maximized and coordinated. With so many variables to consider in determining your best options, obtaining professional advice is highly recommended. ■
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* The views expressed in this article are not necessarily that of Suwanee Magazine
