Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) - Here's How Social Security Gets Impacted When Retiring Early

Here's How Social Security Gets Impacted When Retiring Early

02/05/24 • 21 min

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance)

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here MyoDetox -> FutureProof your body and book a session at Myodetox today.

Decrease tension, reduce pain, better align your posture, and increase your range of motion while building your strength. Mention "ER Pod" or "Early Retirement podcast" when you book!

Unlock the mysteries of your Social Security benefits and learn how early retirement may reshape your financial horizon. We're peeling back the layers of those complex government booklets to give you a crystal-clear picture of how retiring sooner than later can affect your golden years. Imagine hanging up your work boots with 30 years of earnings instead of 35; we'll walk you through a real-life scenario that reveals the surprising truth about the financial implications. Your feedback has been a beacon for us, shining light on the nuances of tax and estate planning, and it's our pleasure to respond with heartfelt thanks and deeper insights. We're not just talking numbers here; we're aligning your retirement dreams with the values that matter most to you, discussing how part-time work can still add value to your Social Security record.
As life throws its curveballs, it's essential to keep a fluid stance on your retirement game plan. This episode dissects the art of adapting to unexpected health issues, navigating Roth conversions, and pinpoints the optimal moment to claim your Social Security rewards. Ever confused about spousal benefits and delayed retirement credits? We're busting myths and offering a masterclass on getting the most out of your retirement together, for better or for richer. Couples, take note on how a strategic stagger in benefit collection could fatten up your financial future. Finally, we cast the spotlight on the Rule of 55, Rule 72(t), a little-known strategy for the early retiree looking to sidestep penalties. Whether you're meticulously drafting your exit strategy or just contemplating the possibilities, this conversation is your guide to bridging the gap between a comfortable retirement and the life you've earned.

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Ari Taublieb, CFP ®, MBA is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.

“Early Retirement – Financial Freedom” is a podcast produced by Root Financial Partners, an SEC-registered investment adviser. The content provided is for informational and educational purposes only. It should not be interpreted as investment, legal, or tax advice. I may reference planning situations based on real client experiences, but they’ve been simplified for clarity. Always consult your own financial advisor before making decisions.

Listening to this podcast does not create or imply an advisory relationship with Root Financial. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. Testimonials and endorsements do not reflect all client experiences and are not compensated. Learn more at our website or by reviewing our Form ADV at https://adviserinfo.sec.gov.

Decrease tension, reduce pain, better align your posture, and increase your range of motion while building your strength. Mention "ER Pod" or "Early Retirement podcast" when you book!

Previous Episode

This Is How To Retire Early Without Worrying About Running Out Of Money

Decrease tension, reduce pain, better align your posture, and increase your range of motion while building your strength. Mention "ER Pod" or "Early Retirement podcast" when you book!

Ever feel like an early retirement is a distant dream clouded by financial fears and the 'what ifs' of life? Kick those mental roadblocks to the curb as we dissect the myths and realities of hanging up your work boots ahead of schedule. We don't just scratch the surface; we go deep into the psychology of early retirement, introducing you to "financial independence, recreational employment." It's a twist on retirement that could redefine your golden years, encouraging you to find joy in activities that resonate with your passions.
This episode isn't just about the 'why' of early retirement; it's also about the 'how.' We navigate the complex world of withdrawal strategies, steering clear of a one-size-fits-all approach to discuss the nuances that make your retirement as unique as you are. We'll talk about how to tailor your financial plan to be responsive to life's unpredictable twists, and I'll show you how to wield control over the aspects of retirement planning that are firmly in your hands—your spending habits and investment choices.
As we wrap things up, you'll hear real stories from clients who've turned their retirement dreams into reality. We discuss everything from dynamic withdrawal rates that fund once-in-a-lifetime adventures to savvy Roth conversions that make market downturns work in your favor. If you're looking for a compass to navigate the sometimes choppy waters of early retirement planning, this episode is your North Star. Remember, you've got the helm, and with a bit of strategic guidance, you'll be charting a course toward an early retirement that's as financially stable as it is personally fulfilling.

Next Episode

"I retired early and didn't start seriously investing until my 40s" - Special Episode With My Clients!

Create Your Custom Early Retirement Strategy Here
Get access to the same software I use for my clients and join the Early Retirement Academy here
Have you ever peered over the edge of the working world and considered the plunge into early retirement? Scott and Rhonda did just that, and in this engaging episode, they illuminate the path they took to trade in their briefcases for a permanent vacation. From confronting the fear of outliving their savings to learning the value of owning a home outright, they provide a candid look at the key decisions and preparations that made their early exit possible.
Retirement brings its own set of emotional challenges and team dynamics, and our guests don't shy away from sharing theirs. They discuss the art of keeping in touch with former colleagues, the smooth transition that comes with a gradual farewell, and how they navigated the complexities of retiring at different times. Their insights offer a valuable compass for those considering stepping back from their careers, demonstrating the importance of syncing retirement plans with life partners to ensure a harmonious journey.
Financial advice can often feel overwhelming, but Scott and Rhonda break it down into attainable steps. They stress the merits of debt elimination, proactive saving habits, and the reassurance found in professional financial guidance. Their story is a testament to the power of planning, as they move from wealth accumulation to savoring the pleasures of life. Whether you're in your 60s or just starting to think about retirement, their wisdom serves as a poignant reminder to prioritize personal fulfillment and honest partner communication for a truly enriching retirement experience.

Early Retirement - Financial Freedom (Investing, Tax Planning, Retirement Strategy, Personal Finance) - Here's How Social Security Gets Impacted When Retiring Early

Transcript

Speaker 000:00:00.040

If you want to retire early , you have to look at social security a lot differently . And here's why Social security is based on your 35 highest years of earnings . So , hypothetically , if you retire at 55 and you work at 20 , and that's when you begin your earnings it's pretty simple you work at 20 , you retire at 55 . There you go , you got your 35 highest years of earnings