Episode Summary:

In today's episode, Russ and Mike unpack their insightful five-pillars framework for Social Security optimization and reveal strategies that could help maximize retirement benefits. With pensions disappearing and Social Security representing 30-50% of retirement income for many Americans, making the right claiming decision is crucial. The authors highlight a startling reality: 80% of men die married while 80% of women die single, yet most claiming strategies overlook this fact. Their approach moves beyond simple break-even analysis to consider timing, taxation, coordination, longevity, and legacy planning. They also discuss the hidden danger of "dollar cost ravaging" and share their "Solve for Zero" strategy to potentially eliminate federal taxes in retirement.

About the Guests:

• Mike Hoeflich is a career changer who worked as a systems analyst, then in human resources and trust plans administration before becoming a teacher. He's now in his 10th year as a certified Social Security claiming strategies specialist helping people with retirement income planning.
• Russ Gaiser spent nearly nine years on active duty in the Air Force as a surgical tech, then seven years as a healthcare administrator before transitioning to financial planning during COVID. He's in his fourth year specializing in retirement planning and social security optimization.

The Five Pillars of Social Security Optimization:

1. Timing: Considers survivor benefits, inflation protection, and integration with other retirement assets

2. Taxation: Examines how benefits are taxed federally and by state, and strategies to manage tax brackets

3. Coordination: Addresses spousal benefits and healthcare cost planning

4. Longevity: Mitigates inflation risk and market risk for long-term income security

5. Legacy: Focuses on increasing excess capital for charitable giving and passing wealth to heirs

Key Concepts Explained:

Dollar Cost Ravaging: Unlike dollar cost averaging during the accumulation phase, retirees face "sequence of returns risk" when they start withdrawing money. The order in which market returns occur matters significantly during retirement, and can ravage portfolios if withdrawals continue during market downturns.

Solve for Zero Strategy: A method to determine how much additional income (from part-time work, IRA distributions, dividends, etc.) you can have alongside Social Security benefits while still maintaining zero federal tax liability.

Client Success Story:

Russ shared a story about a 67-year-old client who discovered she was eligible for survivor benefits from her ex-spouse who had passed away. This revelation resulted in approximately $61,000 in benefits that she could pass on to her children as a legacy from their father.

Get the Book:

Readers can download a free ebook and audio version of "Beyond Break Even" at beyondbreakevenbook.com

Connect with the Authors:

For a complimentary retirement income stress test, call 1-888-280-PLAN.

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