Are you ready to start taking Social Security benefits? Do you feel knowledgeable on what strategies to put in place to make the most of it or are you falling for some of these common misconceptions when it comes to Social Security?
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People may have preconceived notions when it comes to Social Security, but in today’s episode of Your Financial Mission we will review some of the common misunderstandings surrounding Social Security. Are you caught off-guard by any of these?
Is Social Security going broke? You may have seen headlines that indicate that Social Security benefits will run out by 2035. J’Neanne says Social Security benefits will have to change. Don’t think though that Social Security will suddenly disappear though. It’s a problem that needs to be fixed, but it will likely first be reduced.
When should you take Social Security? There are a lot of factors that affect this decision. Will you continue to work? Do you have other assets? What happens to your spousal benefit if you pass away sooner? Some think you should start taking Social Security as soon as possible while others delay it as long as they can. The best answer will really depend on you and your situation.
Will the Social Security Administration help you figure out when to take Social Security? If this is your plan, you may want to think again (and find a good financial advisor) because the Social Security Administration is not allowed to give you advice. They can only tell you the number you are requesting, such as what the benefit would be if you took it today or what the full retirement benefit is.
Finally, do you really have to pay taxes on Social Security? Don’t overlook this when it comes to calculating your retirement income. Are you in a state that taxes Social Security?
But first, we talk about some of the latest in the news as well as a new segment called “Did you see this?” to discuss what happened when a couple was accidentally credited $120,000 in their bank account.
Listen to the full episode or click on the timestamps below to hear a specific segment.
[2:50] – In the News: When looking at the presidential candidates for 2020, how might they impact the market?
[7:24] – Did you see this: Couple arrested for spending $120,000 accidentally added to their bank account.
[11:44] – Misunderstanding #1: Social Security is going broke.
[14:29] – Misunderstanding #2: You should start Social Security as soon as possible.
[15:40] – Misunderstanding #3: Delaying Social Security as long as possible is usually best.
[16:57] – Misunderstanding #4: The Social Security Administration can help you choose the best strategy.
[17:59] – Misunderstanding #5: You don’t have to pay taxes on Social Security.
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