A Social Security bridging strategy involves spending from your assets after you stop working instead of taking your retirement benefit immediately.
There are pros and cons of this approach, but the benefits can be substantial. In particular, you might:
☑️ Maximize your retirement income
☑️ Reduce risk over the long term
☑️ Open the door to tax strategies
☑️ Possibly help improve things for a surviving spouse
☑️ And more
But there are no guarantees in life, and there are always tradeoffs. That’s true with a Social Security bridge, as well. For instance, you might be hesitant to spend down your assets while you wait. That’s understandable. And delaying benefits isn’t right for everybody. Whether you have health issues or you just want the income sooner than later, it could be appropriate to take benefits early.
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In this video, we explore how the strategy works, we cover some pros and cons, and we review a few tips for anybody who wants to use it.
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CHAPTERS:
00:00 Why Use a Social Security Bridge?
02:03 What Is a Bridge Strategy?
04:22 Unique Features of Social Security
04:47 Inflation Adjusted Payments
05:27 Lifetime Income
07:03 Benefits of the Bridge Strategy
08:30 Reduce Your Risk
09:29 Provide for a Surviving Spouse
10:38 Enable Tax Strategies
12:53 Potential Drawbacks
15:55 Tips for Using the Strategy
IMPORTANT:
It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration....(read more)
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Social Security Bridge: Maximize Income Social Security is a critical component of financial security for retired individuals in the United States. It provides a steady stream of income to millions of Americans who have worked and paid into the system throughout their careers. However, navigating the complexities of Social Security can be challenging, especially when it comes to deciding the optimal time to start receiving benefits. This is where the Social Security Bridge strategy comes into play. The Social Security Bridge strategy is designed to help retirees maximize their Social Security income by bridging the gap between their retirement and the age at which they can receive the maximum benefit amount. By implementing this strategy, individuals can take advantage of delayed retirement credits, which increase the benefit amount for each year that retirement is delayed beyond the full retirement age (FRA). To understand how the Social Security Bridge strategy works, let's consider an example. Suppose an individual's FRA is 66, but instead of retiring at this age, they decide to postpone their retirement until the age of 70. By doing so, they can accumulate delayed retirement credits, which will increase their Social Security benefits by 8% each year. In this scenario, the individual may wish to bridge the income gap between their FRA and the age of 70 to maintain their standard of living. They can achieve this by leveraging other sources of income, such as their retirement savings, investments, or even part-time work. During the bridging period, the retiree can tap into their savings or investments to cover their living expenses. By doing so, they can delay claiming Social Security benefits until the age of 70, allowing their benefits to grow significantly through delayed retirement credits. In effect, the retiree uses their savings as a bridge until they reach the point where they can maximize their Social Security income. The benefits of the Social Security Bridge strategy are twofold. Firstly, by postponing Social Security benefits, retirees can significantly increase the income they will receive during their retirement years. Secondly, depending on the retiree's financial situation, they may be able to minimize the need to tap into their savings in the early years of retirement, preserving those assets for future needs. It is important to note that the Social Security Bridge strategy may not be suitable for everyone. Factors such as the retiree's health, financial stability, and other sources of income should be considered when deciding to implement this strategy. Additionally, the Social Security Bridge strategy is just one of many approaches to optimizing Social Security benefits. Each individual's circumstances are unique, and seeking professional advice from a financial planner or Social Security specialist is highly recommended before making any decisions. In conclusion, the Social Security Bridge strategy offers a way for retirees to maximize their Social Security income by bridging the income gap between their full retirement age and the age at which they can claim the maximum benefit. By leveraging other sources of income during this bridging period, retirees can delay claiming Social Security benefits and take advantage of delayed retirement credits. However, it is crucial to consider personal circumstances and seek professional advice to determine if this strategy is suitable for individual financial goals and needs. https://inflationprotection.org/how-to-maximize-income-with-the-social-security-bridge/?feed_id=139385&_unique_id=65107b4fcfda0 #Inflation #Retirement #GoldIRA #Wealth #Investing #bridgingstrategy #CFP #filltaxbracket #fra #retirementincome #retirementplanning #retirementrisk #rothconversions #socialsecurity #socialsecuritybridge #socialsecuritystrategy #taxesinretirement #whatageforsocialsecurity #whentotakesocialsecurity #SpousalIRA #bridgingstrategy #CFP #filltaxbracket #fra #retirementincome #retirementplanning #retirementrisk #rothconversions #socialsecurity #socialsecuritybridge #socialsecuritystrategy #taxesinretirement #whatageforsocialsecurity #whentotakesocialsecurity
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