Michael Kresh CFP® RF™
Dan Kresh FPQP™
Many of our recent newsletters have been a combination of providing short-term market commentary, and a reminder that short-term commentary should mostly be ignored and often is not useful. So, rather than being redundant here, we want to take this opportunity to inform you of a service we can provide for you, your family, or friends that we think can be quite beneficial for the average person or couple approaching retirement.
Michael was interviewed by News 12 Long Island towards the end of last month after a report from United Income, coauthored by the former chief economist of the Social Security Administration[i], stated that retirees are forfeiting over 3 trillion dollars in benefits (that’s right trillion)!
Since most retiring Americans no longer have access to a traditional pension[ii], social security may be the only inflation adjusted retirement benefit available that is guaranteed for both your life and the life of your spouse.
Many Americans do not know where to begin when it comes to optimizing their social security claiming strategies. The decision on when, and how, to tap into that benefit appears to be widely misunderstood. People often elect to begin collecting social security at the earliest possible date (i.e. age 62), which is estimated to cost the average American family over $100,000 in lifetime benefits! If you are nearing retirement, it can be extremely beneficial to have a professional analysis of your social security benefit options.
We are set up in our office to do detailed social security benefits analyses for anyone who wants to come in for a preretirement review. We feel so strongly about this, we will be setting up social security benefit workshops in the fall. If you know anybody who is thinking about when they should start claiming benefits, we would be happy to help them.
[i]The Retirement Solution Hiding in Plain Sight: How Much Retirees Would Gain by Improving Social Security Decisions Matt Fellowes, United Income, former Fellow at the Brookings Institution Jason J. Fichtner, Johns Hopkins University, former Chief Economist at the Social Security Administration Lincoln Plews, United Income Kevin Whitman, former Policy Research Director at the Social Security Administration
[ii]Here, “traditional pension” refers to a defined benefit plan that pays out monthly income for life, though many retirees have access to 401ks or IRAs the prevalence of traditional pensions has decreased dramatically and is expected to continue to decline.
*Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not
necessarily reflect the views of Royal Alliance Associates, Inc. All Investing involves risk including the potential loss of principal.
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