When Should You Claim Social Security?

Be one of a kind with Mike's Plan.

Welcome to the One of a Kind Financial Show Daily. It's Tuesday, January 13th, and, uh, we're gonna take you back in time again on today's, uh, mini podcast to talk about, uh, January 31st, 1947.

86 years ago.

Uh, see, it was January of 1940 that the very first monthly Social Security retirement benefit check was issued to Ida Mae Fuller.

Social Security is one of the biggest financial decisions many retirees will ever make.

We're going to go back to that beginning and talk about how to approach it thoughtfully, thoughtfully, almost 86 years later. Enjoy this segment, this history lesson, as it can help guide you into a retirement that's fulfilled, that's unique, that's one of a kind.

And Welcome back to the One of a Kind Financial Show. I'm Gary Nolan here with Mike Milligan from One Oak Financial. Today we're going way back, January 31st, 1940, when the very first Social Security retirement check was issued to Ida Mae Fuller. You know how much that check was, Mike? $22.54. And it changed retirement in America, didn't it?

It really did. Uh, Social Security created a foundation of retirement income for millions of Americans. But, but what a lot of people didn't realize is that Social Security was never designed to be someone's entire retirement plan. It was created as a safety net, right? And an income support system for those who had worked their full life, but whose retirement had been decimated as a result of the Great Depression.

Absolutely. Grew out of the Great Depression. Exactly. Now, for a lot of people listening right now, Social Security is going to be one of the biggest financial decisions they make in retirement, Mike.

Yes, because when you claim, that really matters. Filing at 62 or full retirement age, or even waiting until the last possible age 70, it makes a meaningful impact in lifetime benefits.

Here's the key.

The right time depends on the individual who's making the decision. Health, longevity expectations, other income, employment status, financial resources, These are all things that matter when it's time to make the decision on when to turn on the Social Security check. We always encourage people to look at Social Security in the context of their overall plan, not as a standalone decision. Nothing we say is advice to listeners. Everyone should evaluate what fits their personal situation. We can help guide you into make a mathematical decision when it comes to Social Security. See, most people think that maximizing Social Security has everything to do about the date you claim. But one maximization factor that people leave out all the time is about minimizing the taxes you pay on Social Security.

Longevity come into play when you're planning on Social Security, Mike?

It does. Because, you know, your past, the people in your genetic history, how you live your life and what your expected life, what your personal expected life expectancy plays a real big role into it. We, in the Social Security world, we often talk about these things called crossover points. That's where if you start Social Security at different dates with different amounts, when does the sum of those numbers cross over each other? to tell you which decision was right. Well, I always tell people, if you could tell me the day you're going to die, I could give you the perfect Social Security strategy.

Of course you could. Yes.

But nobody knows that. And so what we have to do is make the best decision based off of the facts in front of us. How long did your parents live? How have you lived your life? What is your health? prognosis going forward? And then what is the need? How much will that Social Security actually be as a percentage of your total retirement income?

So let's clarify something. Social Security is important, but it can't carry retirement alone. I mean, it's pretty difficult to do that, Mike.

That's correct. Most retirees, Social Security provides a baseline of income, but people still need withdrawals from savings accounts or investments and other planned income sources, maybe like a guaranteed income annuity, a pension, or maybe even a part-time job. Without those, retirement can feel restrictive and stressful.

What do Social Security make up? Maybe 30% to 40% of people's retirement income should be— it depends on the person, right?

It does. Because on the individual person, the higher your working income was, the higher your Social Security number will be, but the smaller of a percentage of what your need will be. And so for somebody who is a lower income worker of their life, the percentage of retirement income that will come from Social Security is going to be higher.

The show is the One of a Kind Financial Show with Mike Milligan. I'm Gary Nolan, your consumer advocate. Want to thank you for joining us, spending some time with us. We certainly appreciate you being here. Let's get you on Mike's calendar and maybe you have a question or two about today's show. That number is 800-748-1838, 800-748-1838, or text the word ideas to 600-700. All right. So here's another surprise people don't expect is taxes when it comes to Social Security, Mike.

Yeah. Many retirees don't realize Social Security benefits can be taxed depending on your total income. This is where planning ahead matters. Coordinating withdrawals, managing income levels, and being thoughtful about where retirement income comes from can help people reduce surprise tax bills in retirement. Every situation is different, and there's no one-size-fits-all approach, but understanding the rules helps.

Yeah, and I love this story that Social Security gives Americans hope and structure. But today, retirement success really comes from, from strategy, Mike.

Exactly. Strategy matters. Having multiple income sources means something. Understanding timing is everything in planning for longevity. That's so important. But we also have to be aware of those tax implications. And then we want to review that plan as often as life changes. See, the more intentional we are, the more prepared you will be, and it will help you feel less anxious. And while nothing is guaranteed in markets or life, Having a structured plan can make a meaningful difference in how confident someone feels navigating retirement.

Yeah. So if you're approaching Social Security or wondering whether your timing strategy makes sense, that's where a conversation with a professional can help. Mike and his team at One Oak Financial can help evaluate options in an educational and thoughtful way, Mike.

Yeah, we love helping people understand what Social Security means and how it fits into the bigger picture and what choices they may want to consider. Whether people work with us or someone else, just make sure you're making decisions based the full picture, not assumptions.

All right, Mike, we got about a minute or 2 left. Tell us about the one-of-a-kind financial plan.

It's, uh, the Social Security planning is one of the key components of a one-of-a-kind financial plan because the second pillar of that one-of-a-kind financial plan is retirement income. And Social Security is a component that builds the solid foundation for retirement income. Social Security also offers something that a lot of other retirement income doesn't offer— cost of living adjustments. But we understand how to create an optimal Social Security strategy inside of a one, one-of-a-kind financial plan. As opposed to saying everybody should take Social Security at this age or that age, or under these circumstances, we believe that a thoughtful discussion together that's based off of your facts, our expertise, could put this custom-built-for-you, one-of-a-kind financial plan in place. And I will tell you folks, if you don't have a Social Security strategy and you, you need help, uh, just taking away the fear and anxiety of when to build that, math doesn't lie. And when you see the math we can do for you, the math equation we can put together, the solutions we can put in front of you, it'll make it a whole lot easier. So give us a call so that we can build the one-of-a-kind financial plan. We want you to live a one-of-a-kind life.

Folks, advice like this shows you how important it is to meet with a financial coach, to meet with Mike and the team. They understand the ins and outs of the financial world. Take advantage of this opportunity. No cost, no obligation. 800-748-1838. 800-748-1838. Or text the word IDEAS to 600-700.

Thank you for joining us for the One of a Kind Financial Show Daily. This has been Mike Milligan. As a reminder, We do this podcast for educational content purposes only. You should seek professional financial advice either by reaching out to us in the in how we offered. We offered many different ways to do that in the segment of the radio show that you just listened to. Mike is an investment advisor representative with Advisory Alpha LLC out of Holland, Michigan. Ideas by Mike doing business as One O Financial is an unaffiliated entity of Advisory Alpha.

LLC.

The opinions expressed in the One of a Kind Financial Show and the One of a Kind Financial Show Daily are those of Mike and Gary solely. Please don't take them to make any investment recommendations on your own. Thanks again for joining us on the One of a Kind Financial Show Daily.

Be one of a kind with Mike's Plan. Innovation, growth, take a stand. Visibility, strategy, take the lead. Transformation's yours, fulfill the need. Mike's got the way to help you rise and stay. Leadership impact you'll find in your one-of-a-kind mind. Be one of a kind, take the flight. Mike's the guide, you'll shine bright.