Social Security Income Planning
“The best way to measure your investing success is not by whether you’re beating the market, but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.”
Benjamin Graham, author of The Intelligent Investor and considered the “father of value investing”
What Is The Best Age To Start Your Social Security Income?
There is no “best age” for everyone. Ultimately, it is your choice. You should make an informed decision about when to apply for benefits based on your personal situation.
Your monthly benefit amount can differ greatly based on the age at which you start receiving benefits. If you decide to start benefits:
Before your full retirement age, your benefit will be smaller, but you will receive it for a longer period. At your full retirement age or later, you will receive a larger monthly benefit for a shorter period.
The benefit amount you first receive sets the base for the amount you will receive the rest of your life.
Social Security Guidance
Planning for Social Security Income involves several strategies to maximize benefits and ensure a stable financial future. Here are some key strategies and considerations:
1. Timing Your Benefits
- Early vs. Delayed: You can start receiving Social Security benefits at age 62, but your monthly benefit amount will be reduced. Delaying benefits until your full retirement age (FRA) or up to age 70 increases your monthly payments.
- Consider Personal Needs: Evaluate your financial situation, health, and retirement plans to determine the best time to start benefits.
2. Spousal Benefits
- Claiming Strategies: If you’re married, you can claim spousal benefits based on your spouse’s work record, which may be higher than your own. If one spouse has a significantly higher earnings history, it may be beneficial for the lower-earning spouse to claim based on the higher earner’s record.
- Survivor Benefits: The surviving spouse can claim the higher benefit after one partner passes away, so planning around this can maximize overall household income.
3. Working While Receiving Benefits
- Earnings Limit: If you claim benefits before your FRA and continue working, your benefits may be reduced if your earnings exceed a certain threshold. Understand how this affects your total income.
- Tax Implications: Be aware of how your benefits may be taxed based on your total income.
4. Social Security and Taxes
- Taxable Benefits: Depending on your total income, up to 85% of your Social Security benefits may be taxable. Plan for this when estimating your retirement income needs.
5. Pension and Retirement Accounts
- Coordination with Other Income Sources: Consider how Social Security fits into your overall retirement income strategy, including pensions, retirement accounts, and investments.
6. Health Care Considerations
- Medicare Enrollment: Be aware of how your Social Security claiming strategy aligns with Medicare enrollment periods to avoid late penalties.
7. Using a Financial Advisor
- Professional Guidance: Consult with a financial advisor to develop a personalized strategy that considers your unique financial situation, goals, and the latest regulations.
8. Stay Informed
- Regulation Changes: Keep up with changes in Social Security laws and policies that may affect your benefits.
Conclusion
Effective Social Security Income planning requires careful consideration of your personal situation and retirement goals. By understanding the nuances of the system and strategically planning your claiming options, you can optimize your benefits for a secure retirement. Would you like more detailed information on any specific strategy?
IRMAA Facts In Retirement Strategies (don’t miss this….)
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Single
- $106,000 or less: Base premium of $185
- $106,001–$133,000: $259 premium, which includes the $185 base premium plus a $74 IRMAA surcharge
- $133,001–$167,000: $370 premium
- $167,001–$200,000: $480.90 premium
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Married filing jointly
- $212,000 or less: Base premium of $185
- $212,001–$266,000: $259 premium
- $266,001–$334,000: $370 premium
- $334,001–$400,000: $480.90 premium
IRMAA is an additional fee added to Medicare Part B and Part D premiums based on your modified adjusted gross income (MAGI) from two years prior. The 2025 IRMAA brackets are based on 2023 income.
We would need to do a ‘risk assessment’ (no charge) and find out how IRMAA will impact your present and future expenses based on ‘income received’ so that there are no surprises as you age and you know exactly what you will need to be prepared to pay, based in single/joint income.
Jeorge Holmes
PERSONAL BUSINESS PHILOSOPHY
I’m dedicated to helping my clients choose the best solutions and products in their unique seasons of life. I place a high value on protecting their financial security as they prepare for retirement. I hold myself to the highest level of personal and professional integrity and promise only to recommend insurance product solutions and retirement strategies that are in my client’s best interests.
PERSONAL BACKGROUND
Born and raised in Elgin, Illinois
Married 40 years to Toni Lynn (from Kankakee, IL)
2 adult children (Austin-son, Jasmin-daughter)
3 grandchildren (Mackenzie Rae, Sonny Auz, Sadie Lynn)
Minister for 40 years
Adjunct Professor – Judson University
Enjoys playing sports (basketball, racquetball), working out
12 Years of experience in the Insurance/Financial Industry
PROFESSIONAL BACKGROUND
Licensed in Illinois (Health/Life/Annuities/LTC)
BA from Judson University / MA from Vanguard University
Professional Vocalist/Performer across Chicagoland Area
