The Setup:

Our four-part series on Social Security misunderstandings continues with a discussion on the age you should target for claiming your benefits. Some people will tell you that claiming benefits as early as possible is your best option while others will insist on waiting as long as possible. So which is it? Let’s discuss the factors that go into the decision.

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The Combination and Key Points: 

As you approach retirement, the question that begins creeping into your mind is when should you claim your Social Security benefits?

Many factors weigh into the decision, but it’s an important one because you basically only get one chance to get it right. Should you claim it as soon as possible or should you delay it and receive a larger payment later? These are two of common misunderstandings we see with Social Security and we’ll tackle the question on this episode of Unlocking Your Financial Future. This is part two of a four-part series and it’s one where you’ll hear different opinions.

Ben Schrock, who is NSSA certified, will take us through his beliefs and considerations when helping clients decide what age to claim Social Security benefits. The first misunderstanding on this topic is taking them as soon as you can is your best strategy. This could be the case, but there are plenty of reasons why you wouldn’t want to do this.

[2:23] – The first misunderstanding is starting your Social Security as early as possible is your best option.

The next misunderstanding is on the complete opposite side of the spectrum. Some people will tell you that you want to wait as late as you can to claim because you’ll receive the largest payment possible. While that’s true, you might need the money much earlier than 70-years-old.

[4:04] – Others say waiting as long as possible to take the money is your best bet.

There are many considerations, like whether you plan to go back to work after claiming your benefits. That could impact your monthly payment. But there’s much more to consider and we offer a no-cost, in-depth Social Security analysis for clients that Ben explains on the show.

[5:29] – What does the process look like at B.A. Schrock when you work with a client on this topic?

[6:43] – If you decide to go back to work after claiming, how does that factor into your benefits?

[8:00] – We offer an in-depth Social Security analysis for clients at no cost.

We wrap up this episode by taking two questions from the mailbag. Remember that you can always call us, contact us through this website, or connect with us on Facebook if you have a question for Ben. Today’s two topics deal with investing real estate gains and tax implications for rolling over a 401(k).

[11:16] – Mailbag Question: I’m selling one of my rental properties in a month or two. What’s the best thing to do with the money from that sale?        

[13:08] – Mailbag Question: Are there really no tax implications for rolling over my 401k?

Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!

 



 

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