Ep 17 - Decoding Social Security for Retirement Planning

Wondering how to navigate the world of Social Security? Join financial advisors Jeb, Ethan and Eric as they tackle one of the most critical topics for retirees. This episode provides a clear overview of how Social Security works, from eligibility requirements and the Full Retirement Age to the often-overlooked spousal benefit. They offer valuable insights into the pros and cons of claiming social security early versus late. The hosts also address the big question on everyone's mind: what is the future of Social Security? Tune in for expert advice regarding this essential component of your retirement planning.

IN THIS EPISODE:

• (00:00) Opening
• (02:50) Social Security is funded through FICA taxes paid by employees and employers
• (04:43) Concerns about the stability of social security in the future
• (08:36) Rules for eligibility, full retirement age and how the benefit is calculated
• (12:30) Discussion of spousal benefit and Social Security income could be considered taxable
• (15:19) The break-even point of taking money out of the system and portfolio value
• (20:05) Use the SSA website to print your Social Security statement and share it with your financial advisor

KEY TAKEAWAYS:

• Social Security Basics: The program is funded by payroll taxes, requiring 40 work credits for eligibility. Benefits are based on your 35 highest-earning years, with a full retirement age that varies. A spousal benefit ensures a lower-earning spouse can receive up to 50% of their partner's benefit.
• Claiming Strategy Matters: Claiming benefits early at age 62 results in a permanent reduction, while waiting until age 70 provides a higher monthly payout. The best claiming strategy depends on individual health, longevity, and its impact on your total investment portfolio.
• The Future of the Program: The Social Security trust fund is projected to be depleted in the 2030s, which would likely lead to reduced benefits, not elimination. Solutions to secure the program include adjusting the FICA tax wage base or increasing the tax rate.

RESOURCES:

Metcalf Partners - Website

Jeb Graham - LinkedIn

Ethan Hutchison - LinkedIn

Eric Wymore - LinkedIn

DISCLAIMER:

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

ABOUT THE HOSTS:

Jeb Graham:

Jeb is the CEO and Managing Partner at Metcalf Partners Wealth Management. Before founding Metcalf Partners, he was a financial advisor in Overland Park, Kansas. Active in the Kansas City community, Jeb serves on the Kansas City Chapter Board of the Entrepreneur Organization (EO). He holds a finance degree from Kansas State University and a CFP® designation, and he received additional executive education in retirement planning from Wharton.

Ethan Hutcheson:

Ethan is a Partner and Financial Planner at Metcalf Partners. He is passionate about helping people prepare, plan, and execute their goals. With a career in Financial Services, his expertise spans Financial Planning, Tax, and Investment Management. Outside of work, Ethan enjoys hunting, cycling, and outdoor activities with his wife, Shanna, and their sons, Rhett and Levi.

Eric Wymore:

Eric is a Partner and Wealth Manager at Metcalf Partners Wealth Management. His career has been dedicated to wealth management. As an Accredited Investment Fiduciary, he prioritizes acting in clients’ best interests. Originally from southeast Iowa, Eric has lived in Kansas City for 20 years with his wife, Becky, and their sons, Gabe and Nolan. He holds a degree in finance from Iowa State University.