The Key to Developing a Social Security Strategy

By: Guy Leman

   In our practice as financial planners, we get the privilege to walk alongside many individuals and couples as they plan for, and travel into and through, retirement. One of the most vexing things couples face is the decision about when to take their Social Security benefit. We hear all sorts of ideas about how people plan to maximize their Social Security benefit, often with complicated schemes and strategies. There is no doubt that the Social Security system presents all sorts of options, but it is also lined with rules and incentives that change the equation. The theme for most couples is that they want to make the “right” choice.

    We often start the Social Security discussion by saying, “If you can tell me how long you will live, we can really nail this Social Security strategy for you!” This statement often elicits a smile and a bit of nervous laughter, because of course, nobody knows the answer to that question. So in lieu of knowing what the “right” choice will be, we endeavor to make a WISE decision. Which Social Security strategy is going to help you to achieve your goal of retiring with what you need? 

    When we flip the question about Social Security away from just maximizing the benefit and towards the idea that it is just another tool to create the retirement you have been dreaming of, it takes a lot of the pressure off. The reality is that nobody knows what the “right” Social Security strategy is for you because nobody knows the future. But with good planning and broad thinking, it can be used as a tool to help you pursue the future you desire. 

    The great fear of those looking to maximize their Social Security benefit is that they will leave a few dollars on the table. But I say, “So what!” If you can use Social Security to make your plan work and retire when you want to, isn’t that WISE? 

Do you have questions? Compass Financial Services can help.