It’s not exactly accurate to say Social Security is taxed twice, but it can certainly feel that way. This is often attributable to people seeing Social Security being withheld during their entire working life, then finding out in retirement that those earned Social Security benefits are themselves being taxed as income.

Social Security is essentially a mandatory retirement savings program funded by the Federal Insurance Contribution Act (FICA) taxes you and your employer pay each year. Conceptually, the government views it as a savings account for your retirement rather than a traditional tax on income to fund the government. In that respect, the benefit payment you receive from that “savings account” is only taxed as income when you finally receive it in retirement.

The program has been running at a deficit in recent years, meaning more is paid out in SS benefits than is taken in via the Social Security portion of FICA taxes paid by current workers. In their 

, the SSA says the program was paying monthly benefits to 66 million people in total. Approximately 181 million workers paid FICA taxes that year.

They estimated that more than 40 percent of SS beneficiaries paid income tax on their benefits, and those taxes go into the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds as well as the Medicare Hospital Insurance Trust Fund.

What Does the Social Security Trust Fund Depletion Mean?

Depletion of the Social Security trust fund, which is projected to occur in 2034, doesn’t mean the fund will be entirely empty. It simply means that, in that year, the fund’s income is projected to only cover approximately 80 percent of scheduled benefits. Unless legislation is passed to correct the issue in some way, SS beneficiaries may experience a roughly 20 percent reduction in their benefit payments once depletion occurs.

Potential Solutions to Avert Depletion or a Reduction in Benefits

There are a variety of potential legislative solutions that have been floated to avert the depletion cliff. One potential solution is to increase the FICA tax rate (

) or lift the cap on taxable wages. The portion of this tax that goes to funding Social Security is 12.4 percent – 6.2 percent paid by the employer and 6.2 percent paid by the employee.

, if passed right away, would make up for the projected shortfall. If the tax increase was put off until the shortfall arrives in 2034, the SS part of FICA would need to increase to an estimated 16.55 percent to account for the 20 percent shortfall.

The exact estimated figures change annually due to the variety of factors that play into benefit calculations, from inflation adjustments to the number of workers paying into the funds and the number of retirees claiming benefits.

An alternative solution may be to strategically reduce benefits. Some potential ideas that have been suggested include:

Many experts advocate for a combined approach to minimize the impact on taxpayers and beneficiaries. That could entail slightly increasing the Social Security part of FICA taxes, raising the retirement age (especially for younger workers) and taking steps to tweak the benefit formula, especially for high earners.

There Are No Easy Solutions – But Social Security Isn’t Going Away

Social Security is a hot-button issue. Older people are the 

 in the nation, and politicians on both sides of the aisle go to great lengths to avoid alienating this vital demographic.

The doomsaying and inflammatory rhetoric can sometimes make the situation sound more dire than it is. While a 20 percent reduction in benefits would be a serious problem for many retirees on a fixed budget, it’s a far cry from a complete loss of Social Security.

Even policymakers who advocate for changes typically go to great lengths to reassure current and near-future retirees that they won’t lose their benefits or have their full retirement age increased. In fact, the last time the full retirement age was increased was more than 

, when FRA was increased from 65 to 67 based on year of birth.

Current retirees in Phoenix, as well as those who are planning for future retirement, who are concerned about their future benefits may find speaking to an experienced 

 has extensive experience helping savers plan for the future and maximize their benefits in retirement. Call us to speak with a financial advisor today. 

Why Is Social Security Taxed Twice?

Yes, Social Security is taxed as income for retirees – if the retiree’s combined income meets the minimum requirements. Combined income is your adjusted gross income (AGI) and nontaxable interest combined with half of your Social Security benefits.

 or joint filers with a combined income of $32,000 to $44,000 will have to pay income tax on up to 50 percent of their benefits. Single filers with a combined income over $34,000 or joint filers with a combined income over $44,000 may need to pay taxes on up to 85 percent of their benefits.

 through the SSA to make the process easier. Social Security beneficiaries should receive a copy of their SSA-1099 every January, but you can also request a copy through the 

Social Security Administration’s website

Marginal tax rates can hit retirees particularly hard as they reach the taxable income thresholds. If you’re on the edge of either the 50 percent or 85 percent threshold, it may be in your best interest to speak with a financial advisor or professional tax preparer for guidance.

Unlike traditional IRAs, Roth IRAs are funded with after-tax dollars, meaning they aren’t taxed as income when they’re withdrawn and not included in your combined income calculation. Whether it makes sense to convert a traditional IRA into a Roth IRA in retirement and take the one-time tax hit depends on the unique circumstances of your income and financial situation. It’s likely in your best interest to discuss this and all your other options with experienced 

Should You Continue Working After Beginning to Receive Your Social Security Benefits?

This can be a tough question for many single filers and couples, especially given how combined income is calculated. An important factor to consider is when you begin taking benefits. Doing so before you reach full retirement age can have consequences, but it still might be the preferred choice for some workers and retirees.

The Social Security Administration considers you retired once you begin receiving your SS benefits. People who begin collecting their benefits prior to reaching full retirement age can potentially receive a reduced benefit amount if their annual earnings exceed the limit set by the SSA.

The reduced benefit amount varies depending on how early you begin taking SS. The minimum age to start receiving benefits is 62. You can find the full breakdown of the benefit 

If you begin collecting your benefits prior to reaching full retirement age (FRA), the SSA deducts $1 from your benefit payments for every $2 you earn above the annual limit. For 2024, the limit is $22,320.

You can find a detailed chart of full retirement age based on birth year on 

the Social Security Administration’s website

, but the current breakdown as of 2024 is:

The deduction for wage earners is lower, but still present, during the year you reach full retirement age. The SSA will deduct $1 from your benefits for every $3 of income you earn over the 2024 limit of $59,520, but only for the months prior to reaching FRA.

Once you do reach full retirement age, your earnings will no longer reduce your benefits.

Are You Eligible for Social Security Benefits in Phoenix?

Social Security benefit strategies can be complex, especially given the unique rules regarding when you can begin taking benefits, the ways in which other earnings may reduce your pre-FRA benefits and the impact combined income can have on your marginal tax rate.

Is Social Security Considered Retirement Income for Tax Purposes?

Have you and your spouse discussed when you’ll begin claiming your Social Security benefits? Do you know how much SSI you’ll receive each month and the potential consequences of taking your benefit early?

How much you can rely on Social Security depends on your birth year and income. Baby boomers are living longer. Every year the ratio to workers funding Social Security to beneficiaries shrinks, meaning fewer people are paying in while more people are collecting benefits. While the solvency of the program may not be in question for current and soon-to-be retirees, the future is more uncertain for younger workers.

If you haven’t given much thought to the question of when you or your spouse will begin claiming your benefits, it may be time to start having that conversion. You can 

In 2023, the Maximum Retirement benefit will be 

 in 2023, a $361 increase from 2022. Full retirement age (FRA) is currently 66 for workers born between 1943 and 1954. All workers born in those years have already reached FRA. The FRA for workers born between 1959 and 1960 is 67. A worker born in 1960 will reach FRA in 2027.

How Are Social Security Payments Calculated?

Social Security is based on a “credit” system. For example, retirees are only eligible to receive Social Security if they’ve earned at least 40 credits, which equates to about 10 years of employment. What you’re paid in Social Security is based on your average income over your 35 highest earning years. If you earned the most between the ages of 30 and 65, your Social Security will be based on the average income you reported over that time period.

How Much Will My Social Security Be Reduced if I Take the Benefit Early?

Months matter after you turn 62 and begin your Social Security eligibility. You should look at the chart on page three of our 

 to see how much your benefits may be reduced by choosing to take your benefit early. 

The factors that affect your payment include:

Your spouse’s benefit will also be impacted by your decision to begin receiving Social Security early.

For example, if you were born in 1959, your normal retirement age is 66 and 10 months. When you reach that age, you are eligible for your full Social Security benefit. If someone born in 1959 decides to begin receiving their Social Security as soon as they turn 62, they will be 58 months from FRA. A $1,000 Social Security benefit would be reduced to $708 for that early retiree, which equates to a 29.17 percent reduction. Their $500 spouse’s benefit would be reduced to $329, a 34.17 percent reduction.

How much your benefit is reduced will fundamentally depend on the number of months between your 62

 birthday (or whenever you begin taking your Social Security early) and your full retirement age based on your birth year. You should consider consulting a Fullerton Financial Planning financial advisor for an estimate of your benefit if you’re thinking about applying for Social Security early.

What Are Spousal Benefits and Who Is Eligible to Receive Them?

Derivative Social Security benefits, often referred to as spousal benefits, is 50 percent of the higher earner’s benefit at full retirement age. If the higher earning spouse takes their Social Security early, the spousal benefit will be reduced by five percent more than the primary beneficiary’s reduction percentage.

If the beneficiary’s Social Security reduction is 25 percent, the spouse’s benefit will be reduced by 30 percent. That means a beneficiary who would have received $1,000 would instead receive $750 and the spouse who would have received $500 would instead receive $350.

There are many people who aren’t ready to retire when they reach FRA. This may be because you want to save more before you retire or the idea of not working simply doesn’t appeal to you. Workers who stay employed beyond their FRA can earn delayed retirement credits (DRC). These credits accrue each month beyond your FRA birthday, and the rate of your benefit increases the longer you defer your benefit.

If you’re thinking about deferring your benefit, we encourage you to review the rate chart in our 

Are You Looking for Social Security Income Guidance?

If you’re trying to make the wisest Social Security benefit decision that takes into account your life expectancy, age and retirement age target, it may be worth your time to 

 would be happy to discuss your options and explain the factors that may impact your SSI benefits. Call us at (623) 974-0300 to speak with an advisor today.

 What, When, Who and How? The Social Security Decision 

A 401(k) is a retirement savings plan facilitated by an employer and managed by a third-party financial institution. Employees choose what percentage of their income they want their employer to contribute on their behalf. The money is deducted from the employee’s paycheck just like tax withholding. 

This method of retirement savings has helped millions of American workers prepare for retirement. It is far easier to save when you don’t have to make a conscious effort to do it on a regular basis. This set-it-and-forget-it approach to retirement savings (and investing) frequently leads to better outcomes in the long run. 

What Is a Tax-Advantaged Retirement Plan? 

Many retirement accounts offer some kind of tax advantage, including 401(k)s. Workers who use traditional 401(k) plans are making pre-tax contributions. That means the percentage of your income that’s being deposited into your 401(k) doesn’t have any taxes removed from it. At the end of the year, you don’t have to pay taxes on your 401(k) contributions, even though technically all those contributions come from your income. 

Everyone eventually does have to pay tax on their 401(k) disbursements (distributions) and withdrawals, but those aren’t intended to start until you’re 59 ½ at the earliest. Technically, you can withdraw money from your 401(k) whenever you like, but there is a steep IRS penalty on top of normal income taxes.

Although there are exceptions that will exempt you from early withdrawal penalties, they won’t exempt early withdrawals from income taxes. 

Although there are self-directed 401(k)s that can be used like any other brokerage account or IRA, most retirement savers who use 401(k)s are most likely to be given a handful of potential investment choices. 

Before making decisions regarding 401(k) investment picks, it’s important to understand one’s own risk tolerance. Some investment options carry significantly higher risk but also more growth potential. Others are quite low risk but will also grow at a slower pace than the riskier investment options. 

As a rule of thumb, most young retirement investors start out with high-risk investment strategies and gravitate to lower-risk options the closer they get to retirement. Protecting the value of your 401(k) is often more important than growth by the time you reach retirement. 

Most 401(k)s allow you to invest in specific mutual funds. These funds often include an S&P 500 fund, a large-cap fund, a mid-cap fund, a small-cap fund, international investment funds and funds specifically intended to be large-growth and high-risk as well as low-growth and low-risk, among others. 

Many 401(k) providers also offer more hands-off investment options where you simply choose a preferred 

, and the company manages the rest. For example, you may be able to set your retirement age and adjustments will be made to your 401(k) portfolio without the need for you to ever intervene. These options automatically alter your risk exposure and grow your money without you ever needing to rebalance your fund allocations. 

How you manage your 401(k) is a personal choice. Some people who don’t pay much attention to the market or investments may prefer a more turnkey approach. Others may want to micromanage their options and adjust their funds frequently. 

Many companies offer 401(k) matching as a hiring incentive and employee benefit. These matching funds are frequently in the three to six percent range. What that essentially means is an employer will match an employee’s contributions up to that percentage of their salary. 

If you made $60,000 and set your contribution to six percent to maximize your employer match, you’d be putting in $3,600 a year and your employer would be putting in $3,600 a year for a total contribution of $7,200 a year. 

Many employers match in the form of company stock, so they would technically be putting $3,600 of company stock into your 401(k) each year. In most cases, you are free to sell the company stock and move the proceeds into the other funds. 

Should You Maximize Your Employer Match? 

Some people believe that failing to maximize your employer matching funds is no different than leaving money on the table. However, every person is different. Some retirement investors believe they can beat their 401(k) investment options on their own through a self-directed brokerage account or some other investment strategy (like real estate). Others may simply not have the room in their budget to sacrifice that much of their check every pay period. 

Do You Want to Maximize Your Retirement Savings? 

Are you worried you haven’t saved enough for retirement? Are you wondering if there are better ways to grow your nest egg? Have you been saving in your 401(k), but aren’t sure it’s enough to maintain your quality of life during retirement? 

You don’t have to be in your 50s or 60s to have those questions, and it’s never too early to start planning for your future. 

 today at (623) 974-0300 to learn more about possible retirement investment strategies.

 Understanding 401k and the Affects It Has on Your Financial Future 

So, how can couples get on the same page about their finances so they can fully take advantage of their retirement? We have some ideas.

Of all the things people fear most in retirement, 

 is routinely high on the list. Other common anxieties include 

claiming Social Security benefits too early

. These are what former US Secretary of Defense Donald Rumsfeld famously referred to as “

” or things we know to plan for. What people don’t expect to plan for? Divorce.

Divorce rates for people over 65 have skyrocketed

 in the past few years, and Forbes’ not only has a fun name for the phenomenon (“

”) but a thought-provoking theory as to why: money. Not being on the same financial page with your spouse or significant other can have a detrimental impact not only on your relationship, but your financial and retirement plans as well. 

 have money management styles that differ from their partner’s. Will that be your downfall? Differing opinions don’t have to doom your relationship, but understanding the sources of these opinions and how they may be avoided or assuaged is critical to honestly mapping out your financial plans.

When you make a commitment to a goal, you’re holding yourself accountable for making it happen and 

 As you plan for retirement, don’t worry that every decision you make will be 

. That’s not how it works! In fact, planning for retirement not only means planning for your future, but also protecting yourself from what the future may hold.

Start with a general idea of how you’d like to spend your retirement years (Near the grandkids? Traveling the world? Moving back to your hometown?), then start setting up investment accounts. If you already have them, make sure you’re getting the most out of your investment; if you don’t, make plans to build up. Set up milestones so you and your partner always know where you’re at financially and why you’re doing it.

 the more open we are about money, the better equipped we are to make positive financial decisions. If talking about finances is uncomfortable for you, figure out why and move on.

. Even our best-laid plans can be waylaid by unexpected events. At the onset of the Covid-19 pandemic in 2020, for instance, many investors were driven to sell stocks, a move 

. Mistakes like these don’t always dictate your relative success or failure as an investor, but having a financial plan in place may compel you to think twice before reacting to major events.

Some people have been known to end relationships because their partners are 

. If you’ve made financial mistakes and refuse to acknowledge or accept the reality, you may find it difficult to maintain an appropriate level of trust with your partner. 

 found that money is not the most frequent source of marital conflict in the home, but when compared to non-money issues is “more pervasive, problematic, and recurrent, and remained unresolved, despite including more attempts at problem solving.” That’s a pretty scathing indictment. 

Money is personal. When couples think they’re arguing about money, sometimes they’re actually 

 entirely. Plans that weren’t communicated, broken commitments, and the disrespect of time are 

, and you don’t always outgrow those issues the longer you’ve been together. Make sure you’re addressing the problems you’re facing instead of the failures of the person.

No doubt, upon reading this you may have sighed at the thought of a monthly budgeting session. We like to spend our downtime relaxing, doing things we love, or anything that’s not balancing a checkbook or working on a budget. Making a budget can be 

Making a budget can also be freeing. There are many new ways for couples to get on the same page with their budget without it feeling like drudge work. The internet is a fantastic place to find a multitude of apps like 

 (among many others) that can help not only to make sense of budgeting, but to make sure you’re aligned and budgeting with your financial plan in mind.

Being transparent with your spouse is a major key in getting on the same page with your spouse. There’s a big difference in 

. The main differentiator is if you’re committing 

-- intentionally deceiving your partner about how you’re managing money in a joint account -- or not. Are you saving for a surprise trip, or planning to leave your relationship? It can be a thin line and secrecy is notorious for breeding suspicion. 

This one may seem like a no-brainer but talking to your spouse before making significant purchases should be non-negotiable. Transparency doesn’t mean no surprises, it just means you need to set the stage for a surprise by not making it a burden on your spouse.

Every holiday season, many of us are subject to commercials by car companies advertising their deep discounts – shiny vehicles, jaw-dropping locales, and big red bows. One of the more inane of these has been airing for at least three years and 

” campaign. It features an affluent couple whose surprise holiday gifts for each other are two, fully loaded, just-out-of-production SUVs. For many people watching, the ad is a “

 of a similar ad where one well-intentioned husband presents a new vehicle to his surprised wife, who then demands he take it back after it’s revealed he’s been unemployed for two years and borrowed money from a neighbor to pay for it.

, researchers found two-thirds of consumers have an agreement with their significant other to talk before spending more than a set amount, however, even with that admission, they also found “18 percent weren’t in sync about having a spending cutoff, and 54 percent cited a different amount than their partner.” What’s actually revealed is that we’re not really talking about big purchases with our spouses nor being as transparent as we think we are.

It should come as no surprise that we, as a people, 

. It’s uncomfortable, it’s loaded, and some even find it embarrassing. If you’re in a serious relationship, however, the foundation must be one of trust and respect and that means you shouldn’t get into a serious conversation about money when one or the other of you is, for lack of better words, not in the mood.

As with any serious conversation, you can’t be flippant with time. If you need to talk, treat the subject like you would other serious conversations – schedule time, communicate the importance, and be honest. And if your spouse chooses the wrong time to take a deep dive into your shared financials, don’t shut them down immediately. Good communication between couples means you can a

cknowledge it’s an important conversation

 and plan for a better time where you both can be fully engaged. Be careful with this tactic, however, because if you don’t come around to discussing the subject, it may come across as avoidance.

How you say things matters. Just like those old schoolhouse posters used to say: “there is no I in team,” there is no “I” when you’re planning a future with a partner. Retirement can be complicated and when you have two or more incomes and plans and decisions that have been coming down the pipe for years, it’s important to remember your plan is for a shared future.

, our goal is to help you enjoy your retirement with confidence, not worrying about whether or not you have enough money to enjoy

Sit down with a Fullerton Financial Advisor today

 and learn how you and your spouse can get on the same page when it comes to your retirement goals. 

We understand how important your financial future is to you and your family; we also understand how difficult making these plans can be. When you 

schedule a call with Fullerton Financial Planning

, you’ll discover how we can help you balance your portfolio to meet your unique needs. 

Don’t leave your financial future to chance.

 Let us help you create a personalized plan so you can enjoy the retirement you’ve worked so long and hard for. 

https://money.usnews.com/money/retirement/aging/articles/common-retirement-financial-fears-and-how-to-overcome-them

https://www.fool.com/retirement/2020/09/18/worried-about-a-stock-market-crash-during-retireme/

https://www.cnbc.com/2019/11/15/supporting-your-adult-children-can-ruin-your-retirement-plans.html

https://www.usatoday.com/story/money/2019/06/28/social-security-claim-too-early-and-lose-100-000-retirement/1572620001/

https://www.theatlantic.com/politics/archive/2014/03/rumsfelds-knowns-and-unknowns-the-intellectual-history-of-a-quip/359719/

https://www.washingtonpost.com/news/get-there/wp/2018/03/26/a-gray-divorce-can-devastate-your-retirement-plans-heres-how/

https://www.forbes.com/sites/margueritacheng/2019/02/26/grey-divorce-its-reasons-its-implications/?sh=411b4c854acd

https://www.cnbc.com/2019/05/07/the-biggest-mistake-that-destroys-relationships-according-to-financial-therapist.html

https://www.entrepreneur.com/article/328070

https://henrytapper.com/2020/01/02/retirement-plans-are-never-set-in-stone/

https://www.bustle.com/life/how-talking-about-money-will-benefit-your-life-according-to-finance-experts-75782

https://www.businessinsider.com/money-mistakes-advice-from-financial-planner-2018-11

https://grow.acorns.com/coronavirus-investing-mistakes/

https://www.cnbc.com/2019/09/30/people-are-more-likely-to-break-up-if-their-partner-has-this-quality.html

https://www.marketwatch.com/story/70-of-people-would-breakup-with-someone-over-a-hidden-debt-2015-06-24

https://www.thebalance.com/spouse-won-t-participate-in-a-financial-plan-2386017

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3230928/

https://www.cnbc.com/2019/02/08/5-common-mistakes-couples-make-when-talking-about-money-in-relationship.html

https://www.powerofpositivity.com/common-arguments-relationship/

https://www.fool.com/investing/2020/01/18/4-things-everyone-hates-about-budgeting.aspx

https://money.usnews.com/banking/articles/the-case-for-and-against-spouses-having-joint-checking-accounts

https://www.huffpost.com/entry/hide-money-spouse_l_5e73a87cc5b63c3b648c5f58

https://www.investopedia.com/terms/f/financial-infidelity.asp

https://www.chicagotribune.com/entertainment/ct-ent-xmas-car-commercials-1225-story.html

https://www.youtube.com/watch?v=DQTVh5EF_tc

https://www.youtube.com/watch?v=WcEylCwkSxE

https://www.cnbc.com/2016/09/21/big-spenders-ignore-spouses-at-their-own-peril.html

https://blogs.scientificamerican.com/observations/why-is-it-so-hard-to-talk-about-money/

https://www.psychologytoday.com/us/blog/fulfillment-any-age/201406/5-tips-tough-conversations-your-partner

 8 Ways Couples Can Plan for Retirement Together 

Many people heading into retirement find themselves concerned not just with having enough money to retire, but if that money will last through retirement. If that’s you, you’re in the right place, and in the right hands with Fullerton Financial Planning. 

Financial longevity is of particular concern for both 

, who are currently retiring at exponential rates (

28.6 million in the third quarter of 2020 alone

), as well as Gen-Xers, who will be retiring in 2037, when 

Social Security is currently scheduled to run out.

For others, you may be planning for retirement as people have traditionally done in the past. While that may still be an option - your retirement plan should be catered to you now, and what you’re working for in the future, not ideas popular in your parents’ and grandparents’ generation.

, we believe retirement should be the best years of your life. And while there is no one-size-fits-all solution, our financial advisors can help set you up with a plan for how to more confidently live your next 20-30 years without worrying you will outlive your wealth.

We’ve narrowed our process down to 6 factors that will direct how much you should be saving for retirement, and in what ways:

Everyone’s goals for retirement are unique, so depending on what your goals are -- travel, spending time with family, philanthropy, a home on the coast, etc. -- your plans are less about endlessly building wealth, and more about building wealth to support your goals.

Maybe you’re not sure what retirement looks like yet. 

. Deciding what to do in retirement can feel daunting and despite your best intentions, how you plan for it may not be how it turns out. Fortunately, a customized financial plan isn’t ruined if you change your mind, and instead gives you the peace of mind to feel comfortable doing exactly that.

If the past few decades serve as any indicator, 

inflation rises at an average rate of 2.46% annually.

 For most of us, inflation is not enough to notice with any kind of shock from year to year - it’s only when we notice how it has compounded over a period of time that you can realize ultimately adds up to 102.46%. In other words, something you bought in 1990 for $100, now costs a little over $200.

The main thing you want to know about inflation and how it figures into your financial plan is that it needs to be accounted for. Many people find themselves on a 

 for the duration of their retirement, and while that doesn’t mean financial insolvency, it's not ideal with combating rising inflation. 

Where you chose to retire can have huge implications for your financial plan, and how you want to spend your retirement.

 though the two are not directly connected. Cost of living varies from city to city and is generally considered to encompass basic expenses like housing, food, taxes, and healthcare. The estimate is tied to average wages in the specific area in which you live, which is why places like 

 can seem unsustainable, and places like 

Two factors can impact healthcare expenses in retirement: age and cost of healthcare. Are you prepared to handle the shifting tides of both? As you get older, you will naturally need more attention and care when it comes to your health. Once you reach 65 and qualify for 

, that can help alleviate some of out-of-pocket costs, but won’t cover it completely. 

Location may play a part in healthcare expenses as well, as states like Massachusetts, Utah, and Idaho 

pay among the least for healthcare premiums

, while states like Nebraska, Iowa, and West Virginia, pay among the most.

When you’re creating your financial plan, it’s wise to hedge against healthcare costs going down, in fact, you can almost count on them continuing to rise - with some estimates averaging about a 5.5% increase, every year. Because healthcare is rife with uncertainty (How much will I need? When will I need it? What will it cover?) - it’s best to consider the advice of a seasoned financial planner before committing any amount of money toward current and future healthcare.

Social Security was signed into law in 1935, when it was decided that unemployment, illness, disability, death, and old age were 

. Our modern system was based on recovery ideas in the post-Civil War era, and came on the heels of one of the United States’ worst economic eras, 

In the twenty-first century, Social Security is considered as “nice to have” - and 97 percent of the elderly (aged 60 to 89) either receive Social Security or will receive it, 

according to Social Security Administration estimates

. How long you were in the workforce and what you made (or, what percentage you paid in) will all factor into what amount you actually receive, but the average payment is somewhere around 

 Compare that estimate to your former or current salary and you’ll understand the vast changes you may need to make if you’re relying on Social Security alone.

Additionally, Social Security benefits are available 

, but the longer you wait to begin drawing, the more you may receive. If you’re hoping Uncle Sam will save you, personal finance expert and radio show host Chris Hogan discourages that belief and frequently encourages listeners to “

Welcome to Our Financial Tips Blog

Why Is Social Security Taxed Twice?

Is Social Security Considered Retirement Income for Tax Purposes?

What, When, Who and How? The Social Security Decision

Understanding 401k and the Affects It Has on Your Financial Future

8 Ways Couples Can Plan for Retirement Together

6 Factors Will Decide How Much You Need to Save for Retirement

4 Reasons You Should Be Working with a Financial Advisor Right Now