Costs and Incidence of Long-Term Care
How likely is a person to experience a need for different types of long-term care? This is a challenging question and it is hard to find good answers.
The Importance of Planning for Long-Term Care
Long-term care spending represents one of the most severe spending shocks that can impact retirees.
Potential Directions for Social Security
A common argument for claiming Social Security early is that the program is about to be dramatically overhauled, but it seems rather unlikely that any impending reforms would leave near retirees with significant reductions to benefits.
Losing the Forest for the Trees: The Dangers of Comparative Investing
Some investors measure financial success by comparing their returns against popular benchmarks like the S&P 500 Index. It can be comforting to know how your investments compare to others … but there’s a catch. If you aren’t comparing your investments to similar investments, the results can misinform rather than enlighten your decision-making. This will knock […]
Arguments for Claiming Social Security Early
Believe it or not, legitimate arguments exist for claiming Social Security early.
Justifying a Delayed Claiming Age for Social Security
With an understanding about how benefits are calculated, the important question to consider becomes how to develop a Social Security claiming strategy. When should you apply for benefits?
Philosophy of Social Security Claiming Strategies
Social Security claiming strategies can be extremely complicated. Treaties on this topic, some of which are listed in the table below, provide page after page of details, nuances, and exceptions.
Calculating Social Security Retirement Benefits
I will discuss the philosophy of claiming strategies later, but first, it is meaningful to first consider how retirement benefits are calculated.
The Social Security Administration has now followed the same approach for calculating benefits since 1979.
Introducing the Social Security Claiming Decision
For the vast majority of Americans, Social Security benefits serve as the core of a retirement income strategy. As a government-backed, inflation-adjusted monthly income for life, Social Security benefits help to manage longevity risk, inflation risk, and market risk.
A Brief History of Social Security
Recipients of Social Security benefits today are not just retirees – they’re disabled workers, spouses and young children of deceased or disabled workers, and the spouses and survivors of retirees. This was not always the case.
