“We can’t predict the future, but we can invite it. We can prepare for it. And we can give ourselves a chance to live longer, stronger.” – Cameron Diaz
Elliott got in a bad car wreck a few weeks ago. Fortunately, the airbags helped, and he only had an ankle sprain and a broken toe.
Seatbelts and airbags aren’t important until they are.
The same can be said with Social Security. Too many people take it early. Their reasoning is what if it runs out of money or what if I die early?
Well, what if you don’t?
Social Security offers excellent longevity insurance. Think of airbags for your later years. The idea is to maximize your benefits in case you DO live a long time. Social Security is government income that increases with the cost of living.
Look at this hypothetical example:
The compounding effect of delaying benefits increases as you age. Your benefits are nearly doubled by the time you reach 90. That is some airbag!
What are the chances of living to 90?
A 65 year old male in the US has a life expectancy of 83 years. For women, it is 86 years. A married couple aged 65, there is a 50-50 chance one of them will reach age 90.
Use other assets to live life in your 60s and early 70s. Use Social Security as financial airbags if you are blessed with longevity.
Choosing the right time to claim your Social Security benefits could mean as much as $500,000 over your and your spouse’s lifetime.
Read more about the nuances of Social Security here.
You are unique, and choosing what is best can be complex. Feel free to reach out to us. We are happy to answer any questions and hopefully guide you in the right direction. Click here to setup a call or email me at Jeremy@Riverbendwm.com.
Side note: I am scheduled to give a one-hour talk on Social Security to the South Carolina CPA Association in November.
On the lighter side, we got Elliott moved into the University of South Carolina this past Sunday. He was more nervous than I expected. Guess the anxiety of being on his own, hit him. I talked to him the next day and he was much better. He likes his roommates and is getting settled in. Classes start today. I miss him, but I know he is where he needs to be.
Our bird has flown from the nest…
I hope all is well with you and your family,
Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information. My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions.
Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors, LLC and Riverbend Wealth Management are separate entities.
This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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