EP 57 - Thoughts on Social Security
Today we are taking a break from equity compensation. If you listen to the Equity Compensation Guidebook podcast regularly, you may be happy about getting off-topic!. In this episode, I'll spend a few minutes talking about Social Security. You may be thinking that Social Security is a complex topic so how in the world can I only spend a few minutes talking about it? Well, I just want to focus on the annual report from the Social Security trustees and what I see every year as a result of that report. For my own disclaimer, and even though I have lots of gray hair, I am decades away from Social Security.
You will want to hear this episode if you are interested in...
- Scary headlines from this year’s Social Security annual report [1:18]
- Taking Social Security early hurts beneficiaries [2:50]
- Will Congress and the President allow Social Security to go insolvent? [5:47]
- This week’s FLASHBACK [7:23]
Headlines and highlights creating SS panic
The annual port always creates lots of headlines, some of which sound scary. I'm talking about articles, reports, and headlines that always send people into a panic when it comes to Social Security. The scarier headlines often lead to nervousness and lots of conversations with clients and some non-clients too. This year seemed to be worse than normal and it's not COVID-related! All due to the word insolvency coming up in the report!
The two highlights I want to mention from this year's report said funds would deplete a year earlier, and Social Security would be able to pay out 76% of current benefits. These two highlights cause lots of articles, conversations, and questions about both insolvency and whether people should plan on taking Social Security as soon as they are eligible, which is normally age 62. Check out the episode for some examples and my take on the whole thing!
Will they allow Social Security to go insolvent?
Let’s talk about whether Congress and the President would allow Social Security to go insolvent. This is a concern, but I have a feeling no elected official will vote against replenishing Social Security. Unless they don't want to be reelected. There's a reason why it's called the third rail. If you're wondering about that expression, I believe it refers to the electric source for subway systems. If you touch it, YOU DIE! As cliche as it is, I recommend you talk with your certified financial plan if you're considering taking Social Security early. Every situation is different. Over the years, I've had clients where it made sense to start Social Security as early as possible and others that waited to get maxed out benefits. Let’s talk and find out the right fit for you!
This week’s FLASHBACK: The best and worst of Halloween treats
The worst treat I used to get as a kid on Halloween was from the guy a block away from my house who used to give us 6 cents every year. Yes, 6 cents. I never knew why, and none of us even asked! Now the best treat was a neighbor up a block on my same street. She owned a local bakery. Her treat was a fresh donut. I honestly don't care for donuts, but these were awesome. She either baked them fresh in her house or had them brought over from the bakery right in time for us beggars! So much better than anything else we received that day!