Tax Considerations When Delaying Social Security
Delaying Social Security can potentially contribute to an overall tax strategy for retirement. Every case is different, but generally speaking, when you add taxes to the mix, the case for delaying Social Security becomes even stronger than usual.
Claiming Social Security at 62 or 70
When it comes to claiming Social Security, timing is everything. Should you claim as soon as you’re eligible at age 62, or should you wait until age 70 to maximize your monthly benefit? The decision depends on a variety of factors, including your financial situation, life expectancy, and retirement goals. Understanding Social Security Benefits Social […]
When Are People Claiming Social Security?
One of the hottest topics in retirement income planning over the past several years has been how to help individuals strategize on their Social Security claiming decisions.
Social Security as an “Investment”
The alternative to treating Social Security as insurance is to view it as an investment, or as a gamble on how long one lives. This can be problematic.
Social Security: The Best Annuity Money Can Buy
A final frame for viewing the Social Security claiming decision is as an annuity purchase.
How Time Horizon and Discount Rate Affect Your Social Security Decision
One way to view the decision to delay Social Security as an “investment” is by using a present value calculation to identify which strategy can provide the most lifetime Social Security benefits and which strategy creates the lowest funding needs for your investment portfolio. This calculation requires deciding on a time horizon and a discount rate.
What Is The Retirement Spending Smile?
Our spending desires (and needs) change through time. Blanchett observes a “retirement spending smile” that varies slightly for retirees with different household spending levels.
Reverse Engineering To Desired Retirement Time Horizons
This article is part of a series; click here to read Part 1. Using the portfolio return and volatility assumptions determined in Exhibit 1.1, we then reverse engineer fixed return assumptions and sustainable spending levels for a desired retirement time horizon and targeted probability of success. The investment portfolio is modeled using 100,000 Monte Carlo […]
Determining Sustainable Spending from an Investment Portfolio in Retirement
Determining the sustainable spending rate from a diversified investment portfolio in retirement requires making decisions about longevity and market returns. The final section in this chapter provides an opportunity to integrate this discussion in order to obtain a better sense about sustainable distributions from an investment portfolio in retirement. Rather than blindly applying something like […]
Is Buying an Annuity in a Zero Interest Rate Environment a Good Idea?
The Federal Reserve’s decision to cut its benchmark federal funds rate from 1% to a range of 0% raises significant questions for those reassessing their retirement nest egg—a common occurrence following a dramatic selloff in equities according to research conducted by Indiana University’s Alessandro Previtero —and the value of annuities in providing guaranteed lifetime income.
