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Maximize Your Social Security!

by Eric Seyboldt

As retirement nears, the choices you make regarding Social Security can profoundly affect your stability. Understanding recent updates and available options is essential for maximizing your benefits and ensuring a steady income during retirement. This guide aims to assist you in making informed Social Security decisions.

Understanding Full Retirement Age and Recent Adjustments

Full retirement age (FRA) is when can receive 100 of your Social Security benefits, and it varies based on your birth year. For those born between 1943 and 1954, FRA is 66, increasing to 67 for individuals born in 1960 or later. Recent legislative debates have raised the possibility of further adjustments in response to longer life expectancies and Social Security’s financial challenges, so it's important to stay informed about potential changes that may affect your planning.

Deciding When to Claim Benefits: Early or Delayed?

While you can start receiving Social Security at age 62, doing so will permanently reduce your monthly benefit. On the other hand, delaying benefits past your FRA boosts your monthly payment by about 8% per year until age 70. For example, if your FRA is 67 and your full benefit is $1,000 per month, delaying until age 70 could increase your monthly benefit to $1,240—a 24% rise. However, claiming early might be beneficial if you have health issues or immediate financial needs. Your choice should balance your present circumstances with your expected longevity.

Longevity and Its Impact on Your Benefits

Longevity significantly influences your decision on when to claim Social Security. With the average life expectancy for a 65-year-old man at 84.1 years and 86.8 years for a woman, delaying benefits can be attractive if you anticipate a long retirement. Delaying can maximize your lifetime benefits, especially if you expect to live into your late 80s or beyond. Nonetheless, this strategy requires evaluating your overall health, family history, and retirement savings to ensure you have enough income from other sources during the deferral period. You also need to consider the option of spousal benefits so that your spouse continues to receive benefits if you pass away. A quick meeting with a Social Security representative will provide the values of the options available to you.

Addressing the Income Gap

It's crucial to recognize that Social Security was never meant to completely replace your pre-retirement income. On average, Social Security replaces about 40% of the pre-retirement earnings for the average worker, with a lower percentage for high earners. To address this potential income gap, consider incorporating other guaranteed income sources into your retirement plan, such as annuities. An annuity can offer a steady income stream that complements your Social Security benefits, providing features like principal protection, tax-deferred growth, and guaranteed lifetime income.

Exploring Annuities to Complement Your Social Security

Annuities can effectively bridge the income gap left by Social Security. These contracts with insurance companies offer dual benefits: protecting your assets while growing your retirement savings. Annuities provide principal protection, potential for tax-deferred growth, and the option for lifetime income guarantees, ensuring your financial needs are met throughout retirement. Furthermore, income from annuities is exempt from the Social Security earnings test, which can reduce benefits if you claim before reaching FRA.

Final Thoughts

As you prepare for retirement, making well-informed Social Security decisions is critical. Understanding your full retirement age, weighing the benefits of early or delayed claims, and considering complementary income sources like annuities can help you develop a comprehensive retirement plan. Staying updated on legislative changes and evaluating your personal situation will empower you to maximize your Social Security benefits and enjoy a comfortable retirement.

Reach out to us for a complimentary, 10-minute consultation call. Let's explore together how we can help you protect your assets, ensuring your golden years are as fulfilling and worry-free as you’ve always imagined. Email Eric at [email protected] or give us a call today to schedule your consultation. Let's make your retirement dreams a reality!

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Client: Eric, I keep hearing about declining birth rates in the U.S. How could this possibly impact the national debt, future tax rates, and inflation? What does this mean for me in retirement?

Eric: Wow, that’s a lot to unpack! The declining birth rate is a serious concern for the U.S economy and could directly impact your financial future. Since 2007, the U.S. birth rate has dropped by 17%, levels not seen since the Great Depression. Fewer births mean fewer workers in the future, which is bad news for those nearing or already in retirement. This will affect national debt, tax rates, and inflation, potentially harming many retirement plans.

Let’s start with the national debt. With fewer people working, the tax base gets smaller. This means fewer contributions to Social Security and Medicare, crucial programs for retirees. As these funding gaps increase, the government will need to borrow more, adding to the already huge national debt. With a shrinking workforce, there’s no help on the horizon. This could lead to a debt spiral, requiring deep cuts to benefits or pushing the country into unsustainable borrowing levels.

Now, think about future tax rates. With fewer workers, the government will need to get more money from those still employed. This means higher taxes for everyone, including retirees who rely on investment income like dividends and capital gains. The logic is simple: fewer taxpayers means each person has to contribute more. For retirees on fixed incomes, this could be disastrous. Higher taxes could eat away at your savings faster than expected, forcing many to rethink their retirement plans and budgets.

Lastly, there's inflation. A smaller workforce means less productivity and economic growth, leading to rising prices for goods and services. Imagine dealing with both higher taxes and inflation on your retirement savings. Your money buys less, but you owe more in taxes. This combination could turn a comfortable retirement into a financial struggle.

Client: Is there anything that can be done to protect against this?

Eric: Given this looming crisis, financial planning is more critical than ever. Diversifying income sources, considering inflation-protected investments, and planning for higher taxes are vital steps for pre-retirees and retirees. The government might address this with policies to boost birth rates, like better parental leave or childcare support, but these are long-term solutions with no immediate guarantees.

The declining birth rate is more than a demographic trend—it’s a direct threat to the financial stability of retirees. Without changes, pre-retirees and retirees could face rising taxes, increasing debt, and constant inflation. The clock is ticking, and this silent crisis could become a major challenge in your retirement years. Stay alert, plan ahead, and prepare for a future where every dollar counts more than ever.

Contact us for a free, brief 10-minute consultation. Together, we can discuss ways to safeguard your wealth and ensure your retirement years are as enjoyable and stress-free as you've envisioned. To arrange your consultation, send an email to Eric at [email protected] or call us today. We're here to help turn your retirement aspirations into reality.

Fixed annuities can be an essential component of a well-rounded retirement strategy, offering security, predictability, and efficiency in financial planning.

Here are current fixed annuity rates and their durations from Top A-rated carriers (subject to change at any time, not FDIC insured):

Rates Are Starting To Drop! Don’t Wait To Lock Them In!

3-year: 5.70% (under $100k Deposited)

3-year: 5.85% (over $100k Deposited)

5-year: 5.70% (under $100k Deposited)

5-year: 6.10% (over $100k Deposited)

Please feel free to email Eric at [email protected] if you’d like to ask any questions or request information on these fixed annuities or other retirement topics that are on your mind.

REAL ASSETS, Invest Like the Ultra-Wealthy

Have You Considered Adding Gold or Bourbon to Your Investment Portfolio?

Given the current economic uncertainties, many savvy investors are turning to physical assets, known in the investment world as “Real Assets”, to safeguard their savings. Tangible investments like gold and bourbon barrels are becoming more popular. These real assets act as a strong defense against the negative effects of excessive money printing and inflation. They also provide excellent diversification options during times of economic stability.

Historically, physical assets have consistently outpaced other investment types during economic downturns and periods of market instability. They offer a dependable shield against potential financial turbulence. Adding tangible assets to your investment strategy can be both wise and rewarding.

Considering today's economic volatility, investing in physical assets could be a practical way to maintain the strength of your financial plans. Are you interested in learning how these tangible investments might enhance your portfolio?

Allocating funds into the asset class known as “Real Assets” may be a strategy that you should consider.

Ask us how to Rollover a portion of Your IRA or 401k To A BOURBON IRA (www.bourbon.fund/how-it-works/) or a GOLD IRA (see link below) and:

• Safeguard your assets from the collapsing dollar

• Incorporate the ‘REAL ASSET’ class into your portfolio like the ultra-wealthy

• Hedge against the current high-inflation conditions

• Protect your retirement assets against economic crises

Just get in touch. We make it easier than ever.

Feedback or Questions?

You’re invited to get in touch with us if you’d like to find out how the Novus Financial Group can help you on your journey to a happy, fulfilling life in Retirement. 

We have a lot of great information, as well as podcasts from our radio show ‘The Financial Insider’, and tools on our website - www.novusfg.com.

[email protected] www.novusfg.com [email protected]

Office: 614-943-2265

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Investment advisory services are offered by duly registered individuals on behalf of CreativeOne Wealth, LLC a Registered Investment Adviser. CreativeOne Wealth, LLC and Novus Financial Group are unaffiliated entities.

The content we provide here isn’t financial advice and cannot be taken as such. Please speak to your financial advisor before making any investment decision. Also, note that every investment comes with its risks and drawbacks. Lastly, we would like to remind you that past results cannot guarantee future returns.

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