maximizing social security

We have all been programed that when we reach age 65, we need to head to the Social Security office and declare ourselves as eligible.  This is vital to accepting the benefits of Medicare as our out-of-pocket (when including health insurance premiums) tend to drop. Even our health insurance premium will tend to drop once we qualify for this valuable program.  The starting dates for certain future retirees have a deferral of retirement commencement ages so please realize that certain milestones mentioned in the article need to be updated for your personal situation.

However, many of us make the most common error in social security benefits by starting our benefits then as well.  Unless you are in poor health, you can earn a substantial premium on your social security checks by waiting until age 70 to start. We are all too familiar with the low interest rates these days, of several percentage points.  Your monthly check from social security will be substantially higher if you can wait these years. That means that if you had a savings account with an annual social security benefit of $20,000, you will earn and additional $1,600, or 8% each year.  Lots of found money.

So, bypass the desire to hold onto your IRA or 401(K) and start tapping in at age 65. But that’s the opposite of what most should do, because waiting until 70 to take benefits can pay off in more ways than one.

Many think they just can’t stand working past age 65 (or 66 or 67).  Assuming you have worked steadily for many years, just a minimal amount of “consulting” is necessary.  Doesn’t your company really need you to consult?  It makes no sense to let all that experience leave at once. The other fear is that they may not live long enough to recapture the lower monthly payments from 65 to 70.  Hate to tell you the basic facts, you are dead when you are dead.  There is no judgement of whether you did it right or wrong, we are afraid of outliving our retirement money more than leaving it to our loved ones. So that extra 8% goes a long way to supporting us until the inevitable.

In addition, people also see that putting off taking Social Security by funding their living expenses with withdrawals from their IRAs or 401(k)s with disdain, because those accounts are 100% taxable upon receipt and they hate “giving money to Uncle Sam.”  For certain taxpayers, social security is 85% taxable.

Whether you are a business, individual, or non-profit – we will outline specific steps you can take to minimize taxes, maximize loan eligibility, or enhance the value of your property. With one call or email we will provide you with a professional, complimentary financial statement evaluation – no obligation. Just visit or contact us at, or call (212) 397-2970 and we will be happy to help you and answer your questions.