Debunking Social Security Myths: How to Maximize Your Retirement Benefits
When planning for retirement, Social Security is often top of mind. However, there are a lot of misconceptions out there about how to maximize your benefits. In my latest YouTube video, I break down the most common myths and offer strategies to help you make the most out of your Social Security benefits.
Myth 1: Paying Yourself a Higher Salary to Max Out Social Security
A common belief is that by paying yourself a higher salary, you’ll end up receiving more in Social Security benefits. While increasing your income can impact your benefits, it may not be the best approach for everyone. In some cases, the taxes you pay on that higher salary may outweigh the benefits you’ll receive down the line. Instead, consider focusing on smart investments, like contributing to a Roth IRA, which can provide more tax-advantaged growth over time.
Myth 2: Paying Your Spouse for Social Security Benefits
Another myth is that paying your spouse a salary to build their Social Security credits will ensure a higher benefit for them. However, there are specific rules and limits on spousal benefits that may make this strategy less effective than it seems. It’s important to fully understand how spousal benefits work before taking this approach.
The Cost of Taking Social Security Early
Did you know that if you start claiming Social Security benefits before your full retirement age, you could see a permanent reduction of up to 30%? This is one of the biggest decisions retirees face, and starting too early can lead to a significant financial shortfall during retirement.
The Benefit of Waiting Until Age 70
For every year you delay taking Social Security after reaching full retirement age, your benefit increases by 8%—up until age 70. That’s a powerful incentive to wait, especially if you have other income sources to draw from in the meantime.
Consider a Roth IRA for Long-Term Growth
Instead of relying solely on Social Security, investing in a Roth IRA could be a better option for your financial future. Roth IRAs grow tax-free, and withdrawals are tax-free as well, giving you more flexibility and control over your retirement income.
Watch My Full Video on Social Security Planning
If you want to dive deeper into these strategies and learn how to secure your retirement, check out my latest video on Social Security myths and planning: Watch the Video Here
Ready to Maximize Your Retirement Strategy?
Don’t let Social Security myths dictate your future. Book a discovery call with me today, and let’s create a personalized retirement strategy that works for you! Book a Discovery Call
For more expert insights, visit my website: www.gundersonsbookkeeping.com