Daily Dupaco

Wednesday, January 14, 2015

Social Security: 'It's a No-Brainer?'

Michael PoppenThere is a gentleman I know…at least I’ll refer to him as a gentleman. Though retired, he continues to do contracting work on the side. For lunch he’ll often visit a certain convenience store offering a special of two hot dogs and drink for $2.99. He refers to this culinary concession as a “no-brainer!”

Unfortunately, the decision to take Social Security may not be as simple. There are a lot of different illustrations and scenarios being cast out as tools on how to more effectively capture the benefits of our largest welfare program, Social Security. Many questions persist such as, when do we file? Do we file and suspend? Should we wait until full retirement age? When is full retirement age? What is the rate of increase? Are the benefits taxable? What is the breakeven point?

These are very good questions. However, the bottom line is that these benefit illustrations are meant to be used as a guide, not as a rule. As with anything so personal, each situation presents different challenges from a planning perspective. The fact is Social Security should help fill the income void, which could not otherwise be maintained through retirement (i.e. old age), disability or death. In planning for Social Security, the need is obviously going to influence the decision.

One thing is certain, if you can pay off debt and save money prior to retiring, Social Security will feel a lot more secure and you can be a lot more social. Please contact us at (563) 557-7600 / 800-373-7600, ext. 211, with any questions about Social Security planning and how it might impact your retirement.

By Michael Poppen

Securities and Advisory services offered through LPL Financial, a Registered Investments Advisor. Member FINRA/SIPC Insurance products offered through LPL Financial or its licensed affiliates. Dupaco Community Credit Union and Dupaco Financial Services are not registered broker/dealers and are not affiliated with LPL Financial.

The investments products sold through LPL Financial are not insured Dupaco Community Credit Union deposits are not NCUA insured. These products are not obligations of Dupaco Community Credit Union and are not endorsed, recommended or guaranteed by Dupaco Community Credit Union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

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The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: Iowa, Wisconsin and Illinois.

 

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