Episode #20: Increasing Your Social Security Benefit


The Principle:

A recent Forbes article claims you can increase your Social Security benefits by $200,000. Brian weighs in on whether this is too good to be true.

(Click the featured times below to jump forward in the episode)

Honest Takes:

[00:15]– The Claim. 

  • Forbes Magazine recently published an article suggesting with proper planning you can increase your benefit by $200,000.

[00:49] – The Reality. 

  • Social Security planning is meant to play a role in your comprehensive retirement plan. While it’s true you can withdraw a larger benefit by delaying your first withdrawal, this article takes Social Security planning out of the greater context of your retirement. Determining when to take Social Security isn’t based solely on how large a benefit you can withdraw. It needs to fit into a larger picture that incorporates your other income streams.

[1:38] – An Example.  

  • Let’s say you retire early, and wait until you’re 70 to take Social Security. If you don’t have enough other income, it doesn’t matter how much you can make by waiting to withdraw your benefit. You’re going to run into financial trouble as you draw down on your other assets. That’s why it’s essential to factor Social Security into your comprehensive retirement planning strategy.

[4:05] – The Myth Of Delaying. 

  • Reality suggests that if you live a long time, it might be best to take your benefit early. Doing so increases the amount you’ll withdraw over time. Of course, none of us are guaranteed the promise of tomorrow. It’s impossible to know when we’ll pass on, but we can plan ahead.


Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

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