delaying Social Security Archives - ROI TV

Real Retirement Plans That Work and Don’t

Joe Anderson — Sun, 08 Jun 2025 12:51:39 +0000

When it comes to retirement planning, no two paths are the same. That’s what I love about what we do at ROI TV diving deep into real stories with real people and real numbers.

This week, we walked through three very different retirement plans John Pierre, Tiger (not Woods), and James & his wife and each one had a different challenge: risk management, lifestyle creep, or navigating legacy wealth. I’ll take you through each, so you can see how we tackled their goals and avoided the most common pitfalls.

John Pierre: A Near-Retiree Without Bonds

Let’s start with John Pierre, age 61, and his wife, 58. They plan to retire in the next year or two and want to spend about $150,000 annually, with $80K for basic expenses and $50K for travel.

Their portfolio? Impressive:

$2M in 401(k)s and IRAs
$500K in Roth accounts
$3M in brokerage
$200K in cash
Zero bond allocation

That last part? A red flag.

Joe and Big Al advised a 20–25% bond allocation—about $1.5M—to create a 10-year buffer of “safe money” during potential market downturns. That allows the rest of their portfolio to stay in equities for growth, but with a cushion to ride out the bad years.

We also talked about using municipal bonds in taxable accounts. They’re tax-efficient and can help smooth the process of Roth conversions, which we’re starting in 2025. Risk tolerance is critical here, especially if your gut tells you to sell during a downturn. Build your plan around how you actually behave, not how you wish you would.

Tiger (Not Woods): The Overconfident Millennial Millionaire

Tiger is 33, and he and his wife make $240,000 a year. Their numbers:

$3.2M net worth
$2M in brokerage
$1M in pretax retirement
$150K in Roth
$375K in crypto
$1M home with a 2.75% mortgage

He’s planning to retire when his taxable account hits $2.8M—and that’s excluding crypto. Add to that a potential $5 million inheritance, and you can imagine why Tiger feels like he’s winning the game.

But here’s the warning: overconfidence bias. Just because you hit it big once with a few stocks or crypto doesn’t mean that strategy will work forever.

Tiger wants to cut his retirement contributions, spend an extra $2,000/month, and lean into brokerage investments. Joe and Big Al hit the brakes. Inheritance is not a financial plan. And speculative returns are not predictable. The advice? Stay disciplined, keep saving, and don’t let lifestyle creep sabotage your future freedom.

James & His Wife: Rich in Assets, Not in Income—Yet

James and his wife, both 60, want to retire next year on $180,000 annually. Their portfolio:

$2M in 401(k)s
$2M in deferred compensation
Purchased annuities with GLWBs (guaranteed lifetime withdrawal benefits)

They’ll get:

$47K/year from annuities starting at 65
$20K/year more from annuities starting at 74
$50K/year in Social Security starting at 70

They’re also planning aggressive Roth conversions throughout their 60s to reduce the tax burden before RMDs (required minimum distributions) begin at 73.

Joe and Big Al offered a balanced take. They’re not the biggest fans of annuities (they usually benefit the insurance company more than you), but in this case, they work well as a bond substitute. That gives James room to take more risk with liquid assets to drive growth and liquidity for those planned conversions.

Why Delaying Social Security Matters

If you can afford to delay claiming Social Security, it can be one of the most powerful tools in your retirement plan. You gain 8% per year in delayed retirement credits plus COLA (cost-of-living adjustments).

But it’s not just about the math. Seeing your account balances drop in a market downturn while you delay withdrawals can be scary. That’s why Joe and Big Al always talk about Social Security as longevity insurance. You may not need the money at 62 but you might at 85. Plan accordingly.

Big Picture Advice

Here’s what all three scenarios had in common:

Don’t rely on speculation or inheritance
Keep a balanced asset allocation
Know your true risk tolerance, especially once you stop working
Avoid lifestyle creep your future self will thank you
Make automated saving part of your plan so you don’t spend what you don’t see

We say this every week, but it’s worth repeating: retirement planning isn’t just about the numbers. It’s about behavior, discipline, and having the flexibility to adapt as life evolves.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

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Max Out Your Social Security

Joe Anderson — Thu, 20 Feb 2025 03:49:49 +0000

The Importance of Social Security in Retirement Planning

Social Security plays a pivotal role in the financial stability of many retirees. Approximately 40% of men and 42% of women depend on Social Security for over half of their retirement income. Given its significance, understanding how to maximize these benefits is crucial for a secure retirement.

Factors Affecting Social Security Benefits

Several elements influence the amount of Social Security benefits you may receive:

Work History: Benefits are calculated based on your 35 highest-earning years. Years with no or low earnings can reduce your average, leading to lower benefits.
Age at Claiming: You can begin claiming benefits as early as age 62; however, doing so results in a permanent reduction. Conversely, delaying benefits until age 70 can increase your monthly benefit by up to 32%. blog.ssa.gov
Marital Status: Married individuals may be eligible for spousal or survivor benefits, which can impact the optimal timing and strategy for claiming.
Life Expectancy: Considering your health and family history can help determine whether it’s advantageous to claim early or delay benefits.

Claiming Strategies for Social Security

Determining the right time to claim Social Security benefits requires careful consideration:

Early Claiming (Age 62): While you can start receiving benefits at 62, this results in a permanent reduction of up to 30% compared to your full retirement age benefit. blog.ssa.gov
Delayed Claiming (Up to Age 70): Delaying benefits increases your monthly payment due to delayed retirement credits. For each year you delay past your full retirement age, your benefit increases by approximately 8%. blog.ssa.gov
Individual Considerations: Factors such as health status, financial needs, and other retirement income sources should guide your decision on when to claim benefits.

Spousal and Survivor Benefits

Understanding benefits available to spouses and survivors is essential:

Spousal Benefits: A spouse can receive up to 50% of the higher-earning spouse’s benefit if claimed at full retirement age. Claiming earlier will reduce this benefit. hartfordfunds.com
Survivor Benefits: Surviving spouses are eligible for 100% of the deceased spouse’s benefit if they claim at full retirement age. These benefits can be claimed as early as age 60, though at a reduced rate.

Break-Even Analysis for Social Security

A break-even analysis helps determine the age at which the total benefits received from delaying surpass those from early claiming. Typically, the break-even point is around age 80. If you expect to live beyond this age, delaying benefits may result in higher lifetime income.

Taxation of Social Security Benefits

Social Security benefits may be subject to federal income taxes:

Provisional Income: This includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.
Tax Thresholds:
- Individual Filers: If your provisional income is between $25,000 and $34,000, up to 50% of your benefits may be taxable. Above $34,000, up to 85% may be taxable.
- Joint Filers: For combined incomes between $32,000 and $44,000, up to 50% of benefits may be taxable. Above $44,000, up to 85% may be taxable. www-origin.ssa.gov

Bridging the Gap Before Claiming Social Security

If you choose to delay Social Security to maximize benefits, consider these strategies to cover expenses in the interim:

Utilize Retirement Savings: Withdraw from 401(k)s, IRAs, or other savings accounts to meet living expenses.
Part-Time Employment: Continuing to work can provide income and may increase your Social Security benefits if additional high-earning years replace lower-earning ones in your benefit calculation.

Free Social Security Analysis Offer