March 25, 2025 • 13 mins
Relying too much on Social Security? You’re not alone—over 40% of retirees count on it for at least half their income. But that safety net has some major gaps. In this video, I break down four key reasons why Social Security isn’t enough—and what you can do to secure a more stable retirement.
Questions answered:
1. Why is it a mistake to rely too heavily on Social Security for retirement income?
2. What are some strategies to supplement Social Security income in retirement?
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Timestamps:
0:00 - One-off expenses
1:34 - Inflation & CPIW
4:21 - Tax on provisional income
7:33 - Peace of mind
8:33 - Maximize your benefit
9:22 - Supplement SS
10:24 - Leverage your home
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
It's estimated that over 40% of retirees rely on
Social Security income to meetat least half of their income
needs in retirement, but SocialSecurity was never intended to
fully fund your retirement needs, and in today's video, I'm
going to share why it's amistake to rely too heavily on
Social Security.
This is another episode ofReady for Retirement.
I'm your host, james Canole,and I'm here to teach you how to
(00:22):
get the most out of life withyour money.
And now on to the episode.
There are four reasons this isa mistake, and the first reason
is it will not help you withyour one-time expenses.
Let's use an extreme example.
Let's assume that you haveexactly $2,000 per month of
expenses in retirement, and yourSocial Security benefit is also
exactly $2,000 per month.
All seems good your monthlybills, your utilities, your food
(00:45):
everything is covered untilthere's a one-time expense.
This one-time expense could bea trip you want to take.
This one-time expense could beproperty taxes.
This one-time expense could begifts you want to get.
This one-time expense could bean emergency that comes up that
was unplanned for.
Regardless of what it is,though, your social security
benefit is a consistent monthlyincome, which is great for those
consistent monthly income needs, but it's not going to help you
(01:08):
account for those one-offexpenses.
Now, as obvious as this probablysounds, I see too many people
who, when they're planning fortheir retirement, they look at
their monthly expenses.
They look at credit cardstatements or bank statements
and say here's how much I needin order to retire, and as soon
as they come up with a way ofsupporting that income, they go
ahead and retire.
So you can see how it might beeasy for someone to say this is
(01:31):
the amount I need to fullyretire and they've worked to the
point that their socialsecurity benefit now meets that
need.
Well, they retire, but thenthey forget those one-time
expenses and when those one-timeexpenses come along, all they
can do is put that on a creditcard or go into debt to afford
it, and they're not going tohave the means of paying that
off while still maintainingtheir monthly standard of living
.
The second reason you shouldn'trely too heavily on social
security is it might not fullyindex for inflation.
(01:53):
Now, every year you do get acost of living adjustment from
social security, and themethodology by which you do was
created in 1973.
Social security cost of livingadjustments are tied to
something called CPI-W.
Now, the first issue with thisis CPI-W is tied to the average
spending of people who areemployed.
So we'll get to that in asecond how that's different than
(02:13):
someone who's retired.
But the second issue is withCPI-W, what they do is, every
single year between the monthsof July and September, they say
how is this basket of goods theaverage spending of people who
are employed in the US?
How does this compare to theaverage spending on that same
basket of goods from theprevious year?
Well, when you do that, youdivide the year over year change
(02:33):
and that gives you a percentageincrease, and that percentage
increase is what becomes thesocial security cost of living
adjustment the following year.
So two issues here.
The first is the cost of livingadjustment that you actually
get.
There's a lag there.
You are getting a cost ofliving adjustment the following
year.
So two issues here.
The first is the cost of livingadjustment that you actually
get.
There's a lag there.
You are getting a cost ofliving adjustment 12 months
after the actual increase inmany of the prices you
experienced.
Think of this in 2022.
(02:54):
In 2022, inflation was veryhigh.
So what happens?
Over the course of 2022,retirees were gradually paying
more and more and more foreverything that they were buying
, but their social securityincome in 2022 was fixed.
Now there was a cost of livingadjustment, but every single
year that goes into effect onthe first of the next year.
So in 2023, you receive theadjustment, but that adjustment
(03:18):
at the beginning of 2023 doesn'thelp you with all the expenses
you already paid money for in2022.
So it's a lagging indicator,and this is natural.
This is how it always works,but this is why it feels so
difficult sometimes is the costof living adjustment actually
comes several months after theincrease in some of these prices
, and that happens every singleyear.
Now, the second issue Imentioned is what the cost of
(03:39):
living adjustment is actuallytied to CPI-W.
Now, cpi-w does contain manysimilar expenses that people who
are retired spend versus peoplewho are still working, but it
doesn't account as heavily forthings like housing and
healthcare.
Now, housing and healthcare forretirees are two of the biggest
expenses that you're going tohave.
So when housing increases at afaster rate than the rest of
(04:02):
inflation, or when healthcareincreases at a faster rate than
the rest of inflation, the costof living adjustment that you
are getting doesn't fullyaccount for that, because the
spending pattern of retireesdoesn't exactly mimic the
spending patterns of people whoare still working.
Now that might just be a smalldifference year to year, but
after several years decades eventhose small differences add up
(04:23):
and if you account for that overthe course of retirement, you
might not want to rely tooheavily on Social Security
because it might not fullyaccount for the actual inflation
adjustments you're seeing withyour spending patterns.
The third reason you should notrely too heavily on Social
Security is because, dependingupon your financial situation,
more and more of your SocialSecurity benefit might be taxed
each year.
So let's assume that you havejust enough coming in from
(04:45):
Social Security to cover theneeds that you have from your
Social Security benefit.
Well, to understand how SocialSecurity is taxed, you have to
understand something calledprovisional income.
Now I made this video righthere where I explain in depth
how Social Security is taxed, sotake a look at that if you want
to see.
But provisional incomedetermines how much of your
Social Security benefit is goingto be included in the income
(05:06):
that you pay taxes on.
Now, every year, as SocialSecurity receives a cost of
living adjustment, as maybeyou're receiving more in
dividends or interest or pullingmore out of other investment
accounts to keep up withinflation.
Provisional income levels arefixed so as your provisional
income increases, more and moreof your Social Security benefit
is pulled into the income thatyou pay taxes on, up to a
(05:28):
maximum of 85% of your SocialSecurity benefit being pulled
into the income that you paytaxes on, up to a maximum of 85%
of your Social Security benefitbeing pulled into the income
that you pay taxes on.
This can be a little bitconfusing, so let's look at an
example to show you exactly howthis plays out.
If you are single and yourprovisional income is less than
$25,000, you don't actually paytaxes on any of your Social
Security income.
So let's assume that you areliving on Social Security, which
(05:48):
I'm going to assume you have a$2,500 per month benefit for the
sake of this example and you'realso pulling $10,000 per year
from your traditional IRA, andthose are your only two sources
of income.
The way provisional incomeworks is that $10,000 from your
IRA that's going to be pulled in.
So so far we have $10,000 ofprovisional income.
Provisional income also pullsin half of your social security
(06:08):
income.
So $2,500 per month, that's$30,000 per year.
Half of that is $15,000.
So $15,000 is pulled in.
So your total income is $40,000, $30,000 from social security,
$10,000 from your IRA, but yourprovisional income is $25,000
because half of your socialsecurity benefit is included.
Because your provisional incomeis $25,000, none of your Social
(06:32):
Security is included in yourtaxable income.
So that's great.
This year you're not paying anytaxes on that Social Security
benefit.
But what happens after a fewyears go by and your Social
Security gets cost of livingadjustments.
Maybe that $2,500 per month isnow $2,700 per month, $2,800 per
month, whatever it might be.
Now, during that time, you'reprobably also starting to pull
more money out of your IRA tokeep up with the cost of
(06:53):
inflation.
So what happens is, instead ofpulling $10,000 out of your IRA
and having $30,000 per year inSocial Security, each of those
numbers are higher.
Well, because each of thosenumbers are higher, but
provisional income, thethresholds are fixed.
Your provisional income is nowabove $25,000 in the same
example and because of that, nowpart of your Social Security
(07:13):
benefit is being taxed.
So even though your spendingincreases are just to keep up
with inflation, you're pullingmore out of your IRA and your
Social Security benefit isgetting cost of living
adjustments.
What's happening is becauseprovisional income thresholds
are fixed.
More and more of your SocialSecurity benefit is taxed each
year.
So why do you not want to relyon it too heavily?
Because even if the grossamount of social security is at
(07:35):
least partially keeping up withinflation, the net amount after
taxes and this again dependsupon your financial situation
might be less and less each yearas your provisional income is
increasing.
And then, finally, the fourthreason you don't want to rely
too heavily on social securityisn't necessarily for financial
reasons, as much as it is foryour peace of mind.
How much anxiety would you feelif too much of your benefit, if
(07:57):
too much of your income inretirement, was coming from
Social Security?
It's not too difficult to turnon the news or to go online and
hear how Social Security isprojected to run out, to hear
how benefits are projected to becut by 20% or more, to hear
news about how retirement isgoing to change for millions of
people collecting Social.
How is that going to make youfeel?
Let's even assume that we knowthat there's going to be some
(08:19):
solution to social security.
It's going to be extended.
Are you going to feel okay?
Are you going to feel confident, knowing that that's completely
out of your control?
The answer is probably not.
Retirement is not just abouthaving enough income to do what
you want to do.
Ideally, you want to have thatpeace of mind too.
Ideally, you want to have theconfidence of knowing that
you're not too dependent uponone thing that's fully out of
(08:40):
your control and you havedifferent ways of creating the
income you need to create tolive the retirement you want.
So what can you do instead?
Well, number one maximize yourSocial Security benefit.
If you can maximize your SocialSecurity benefit, then you can
put some of your monthly benefitaway each month for those
one-time expenses.
If you maximize your SocialSecurity benefit, then the
inflation adjustments don't hurtas much because you've got some
(09:01):
margin built in.
If you maximize your benefit,then even as more and more is
taxed, it's still not dippinginto the part of that benefit,
the part of that income that youtruly need each month for your
living expenses.
If you maximize your benefit,you're going to have more
confidence, knowing that,whatever does come with Social
Security, you've got some margin.
You have some excess built inbetween what you absolutely have
to have to live and what yourincome is from Social Security,
(09:25):
so that some of those changeswon't have such a significant
impact on you if and when theydo happen.
So maximize your SocialSecurity benefit is one of the
best things that you can do toovercome some of these.
The second thing you should do,of course, is don't just have
Social Security, have savings,have investments.
Build up a portfolio that canalso create income for you to
help supplement your SocialSecurity income.
(09:46):
Now, the goal of your portfolioin many ways is to do exactly
what Social Security is doing,which is to say, can you
generate income from the timethat you retire to last you for
the rest of your life?
Well, that's what SocialSecurity does.
That's what your portfolioshould do.
The difference is this Withyour portfolio, there's far more
flexibility.
If you need to temporarilyincrease your income because you
(10:07):
just retired and you want totravel and you want to do fun
things, go ahead and increaseyour income.
If you need to decrease yourincome for a period of time
because the market's down oryou're not spending as much, go
ahead and decrease your income.
Maybe you have these one-offexpenses or an emergency or a
trip you want to take.
Take out one-time amounts fromyour portfolio.
So your portfolio, yes, shouldbe creating that income, just
like social security is.
(10:28):
But in addition to that,there's far more flexibility and
it gives you more options tochoose from, so you're not so
dependent upon just one incomesource in retirement.
And then the third thing thatyou can do is think about how
you might leverage your home.
For most people, their home istheir largest single asset.
That asset is wonderful, unlessyou're thinking about it from
the standpoint of how can youcreate income in retirement.
(10:50):
I don't care how valuable yourhome is if you're living there,
you're not going to createincome from your home.
Your home is an asset.
That's a wonderful asset.
But think about that forcontingencies.
If you are too dependent uponsocial security, if something
were to happen to your benefit,if you were to run out of
resources, how can you leverageyour home and your plan to be
okay?
(11:10):
Now, typically this is betterdone as a contingency than as
part of your normal financialplan, as part of your core
strategy.
But what are some things thatyou can do?
Could you downsize your home,unlock some of that equity to
create the income you need tolive the life you want to live?
Could you relocate to adifferent state In doing that?
That's a version of downsizing,of unlocking some of the equity
, but maybe it's also moving toa place that's a lower cost of
(11:32):
living.
Could you potentially get areverse mortgage?
And again, I'm not necessarilyrecommending this as plan A of
the starting point, but knowingthat you have this in case,
knowing that you have this inthe event that things don't go
as planned, a reverse mortgagecan potentially be a great tool.
It can also potentially be ahorrible tool, so be careful how
you use it, but these areoptions that you need to have as
(11:52):
you're looking at yourretirement, to say how can I
create the retirement I want tocreate without being too
dependent upon just my socialsecurity benefit?
Root Financial has not providedany compensation for and has not
influenced the content of anytestimonials and endorsements
shown.
Any testimonials andendorsements shown have been
(12:12):
invited, have been shared witheach individual's permission and
are not necessarilyrepresentative of the experience
of other clients.
To our knowledge, no otherconflicts of interest exist
regarding these testimonials andendorsements.
Hey, everyone, it's me againfor the disclaimer.
Please be smart about this.
Before doing anything, pleasebe sure to consult with your tax
planner or financial planner.
Nothing in this podcast shouldbe construed as investment tax,
legal or other financial advice.
(12:32):
It is for Retirement podcast.
If you want to see how RootFinancial can help you implement
the techniques I discussed inthis podcast, then go to
rootfinancialpartnerscom andclick start here, where you can
schedule a call with one of ouradvisors.
We work with clients all overthe country and we love the
(12:53):
opportunity to speak with youabout your goals and how we
might be able to help.
And please remember nothing wediscuss in this podcast is
intended to serve as advice.
You should always consult afinancial, legal or tax
professional who's familiar withyour unique circumstances
before making any financialdecisions.
It's estimated that over 40% of retirees rely on
Social Security income to meetat least half of their income
needs in retirement, but SocialSecurity was never intended to
fully fund your retirement needs, and in today's video, I'm
going to share why it's amistake to rely too heavily on
Social Security.
This is another episode ofReady for Retirement.
I'm your host, james Canole,and I'm here to teach you how to
(00:22):
get the most out of life withyour money.
And now on to the episode.
There are four reasons this isa mistake, and the first reason
is it will not help you withyour one-time expenses.
Let's use an extreme example.
Let's assume that you haveexactly $2,000 per month of
expenses in retirement, and yourSocial Security benefit is also
exactly $2,000 per month.
All seems good your monthlybills, your utilities, your food
(00:45):
everything is covered untilthere's a one-time expense.
This one-time expense could bea trip you want to take.
This one-time expense could beproperty taxes.
This one-time expense could begifts you want to get.
This one-time expense could bean emergency that comes up that
was unplanned for.
Regardless of what it is,though, your social security
benefit is a consistent monthlyincome, which is great for those
consistent monthly income needs, but it's not going to help you
(01:08):
account for those one-offexpenses.
Now, as obvious as this probablysounds, I see too many people
who, when they're planning fortheir retirement, they look at
their monthly expenses.
They look at credit cardstatements or bank statements
and say here's how much I needin order to retire, and as soon
as they come up with a way ofsupporting that income, they go
ahead and retire.
So you can see how it might beeasy for someone to say this is
(01:31):
the amount I need to fullyretire and they've worked to the
point that their socialsecurity benefit now meets that
need.
Well, they retire, but thenthey forget those one-time
expenses and when those one-timeexpenses come along, all they
can do is put that on a creditcard or go into debt to afford
it, and they're not going tohave the means of paying that
off while still maintainingtheir monthly standard of living
.
The second reason you shouldn'trely too heavily on social
security is it might not fullyindex for inflation.
(01:53):
Now, every year you do get acost of living adjustment from
social security, and themethodology by which you do was
created in 1973.
Social security cost of livingadjustments are tied to
something called CPI-W.
Now, the first issue with thisis CPI-W is tied to the average
spending of people who areemployed.
So we'll get to that in asecond how that's different than
(02:13):
someone who's retired.
But the second issue is withCPI-W, what they do is, every
single year between the monthsof July and September, they say
how is this basket of goods theaverage spending of people who
are employed in the US?
How does this compare to theaverage spending on that same
basket of goods from theprevious year?
Well, when you do that, youdivide the year over year change
(02:33):
and that gives you a percentageincrease, and that percentage
increase is what becomes thesocial security cost of living
adjustment the following year.
So two issues here.
The first is the cost of livingadjustment that you actually
get.
There's a lag there.
You are getting a cost ofliving adjustment the following
year.
So two issues here.
The first is the cost of livingadjustment that you actually
get.
There's a lag there.
You are getting a cost ofliving adjustment 12 months
after the actual increase inmany of the prices you
experienced.
Think of this in 2022.
(02:54):
In 2022, inflation was veryhigh.
So what happens?
Over the course of 2022,retirees were gradually paying
more and more and more foreverything that they were buying
, but their social securityincome in 2022 was fixed.
Now there was a cost of livingadjustment, but every single
year that goes into effect onthe first of the next year.
So in 2023, you receive theadjustment, but that adjustment
(03:18):
at the beginning of 2023 doesn'thelp you with all the expenses
you already paid money for in2022.
So it's a lagging indicator,and this is natural.
This is how it always works,but this is why it feels so
difficult sometimes is the costof living adjustment actually
comes several months after theincrease in some of these prices
, and that happens every singleyear.
Now, the second issue Imentioned is what the cost of
(03:39):
living adjustment is actuallytied to CPI-W.
Now, cpi-w does contain manysimilar expenses that people who
are retired spend versus peoplewho are still working, but it
doesn't account as heavily forthings like housing and
healthcare.
Now, housing and healthcare forretirees are two of the biggest
expenses that you're going tohave.
So when housing increases at afaster rate than the rest of
(04:02):
inflation, or when healthcareincreases at a faster rate than
the rest of inflation, the costof living adjustment that you
are getting doesn't fullyaccount for that, because the
spending pattern of retireesdoesn't exactly mimic the
spending patterns of people whoare still working.
Now that might just be a smalldifference year to year, but
after several years decades eventhose small differences add up
(04:23):
and if you account for that overthe course of retirement, you
might not want to rely tooheavily on Social Security
because it might not fullyaccount for the actual inflation
adjustments you're seeing withyour spending patterns.
The third reason you should notrely too heavily on Social
Security is because, dependingupon your financial situation,
more and more of your SocialSecurity benefit might be taxed
each year.
So let's assume that you havejust enough coming in from
(04:45):
Social Security to cover theneeds that you have from your
Social Security benefit.
Well, to understand how SocialSecurity is taxed, you have to
understand something calledprovisional income.
Now I made this video righthere where I explain in depth
how Social Security is taxed, sotake a look at that if you want
to see.
But provisional incomedetermines how much of your
Social Security benefit is goingto be included in the income
(05:06):
that you pay taxes on.
Now, every year, as SocialSecurity receives a cost of
living adjustment, as maybeyou're receiving more in
dividends or interest or pullingmore out of other investment
accounts to keep up withinflation.
Provisional income levels arefixed so as your provisional
income increases, more and moreof your Social Security benefit
is pulled into the income thatyou pay taxes on, up to a
(05:28):
maximum of 85% of your SocialSecurity benefit being pulled
into the income that you paytaxes on, up to a maximum of 85%
of your Social Security benefitbeing pulled into the income
that you pay taxes on.
This can be a little bitconfusing, so let's look at an
example to show you exactly howthis plays out.
If you are single and yourprovisional income is less than
$25,000, you don't actually paytaxes on any of your Social
Security income.
So let's assume that you areliving on Social Security, which
(05:48):
I'm going to assume you have a$2,500 per month benefit for the
sake of this example and you'realso pulling $10,000 per year
from your traditional IRA, andthose are your only two sources
of income.
The way provisional incomeworks is that $10,000 from your
IRA that's going to be pulled in.
So so far we have $10,000 ofprovisional income.
Provisional income also pullsin half of your social security
(06:08):
income.
So $2,500 per month, that's$30,000 per year.
Half of that is $15,000.
So $15,000 is pulled in.
So your total income is $40,000, $30,000 from social security,
$10,000 from your IRA, but yourprovisional income is $25,000
because half of your socialsecurity benefit is included.
Because your provisional incomeis $25,000, none of your Social
(06:32):
Security is included in yourtaxable income.
So that's great.
This year you're not paying anytaxes on that Social Security
benefit.
But what happens after a fewyears go by and your Social
Security gets cost of livingadjustments.
Maybe that $2,500 per month isnow $2,700 per month, $2,800 per
month, whatever it might be.
Now, during that time, you'reprobably also starting to pull
more money out of your IRA tokeep up with the cost of
(06:53):
inflation.
So what happens is, instead ofpulling $10,000 out of your IRA
and having $30,000 per year inSocial Security, each of those
numbers are higher.
Well, because each of thosenumbers are higher, but
provisional income, thethresholds are fixed.
Your provisional income is nowabove $25,000 in the same
example and because of that, nowpart of your Social Security
(07:13):
benefit is being taxed.
So even though your spendingincreases are just to keep up
with inflation, you're pullingmore out of your IRA and your
Social Security benefit isgetting cost of living
adjustments.
What's happening is becauseprovisional income thresholds
are fixed.
More and more of your SocialSecurity benefit is taxed each
year.
So why do you not want to relyon it too heavily?
Because even if the grossamount of social security is at
(07:35):
least partially keeping up withinflation, the net amount after
taxes and this again dependsupon your financial situation
might be less and less each yearas your provisional income is
increasing.
And then, finally, the fourthreason you don't want to rely
too heavily on social securityisn't necessarily for financial
reasons, as much as it is foryour peace of mind.
How much anxiety would you feelif too much of your benefit, if
(07:57):
too much of your income inretirement, was coming from
Social Security?
It's not too difficult to turnon the news or to go online and
hear how Social Security isprojected to run out, to hear
how benefits are projected to becut by 20% or more, to hear
news about how retirement isgoing to change for millions of
people collecting Social.
How is that going to make youfeel?
Let's even assume that we knowthat there's going to be some
(08:19):
solution to social security.
It's going to be extended.
Are you going to feel okay?
Are you going to feel confident, knowing that that's completely
out of your control?
The answer is probably not.
Retirement is not just abouthaving enough income to do what
you want to do.
Ideally, you want to have thatpeace of mind too.
Ideally, you want to have theconfidence of knowing that
you're not too dependent uponone thing that's fully out of
(08:40):
your control and you havedifferent ways of creating the
income you need to create tolive the retirement you want.
So what can you do instead?
Well, number one maximize yourSocial Security benefit.
If you can maximize your SocialSecurity benefit, then you can
put some of your monthly benefitaway each month for those
one-time expenses.
If you maximize your SocialSecurity benefit, then the
inflation adjustments don't hurtas much because you've got some
(09:01):
margin built in.
If you maximize your benefit,then even as more and more is
taxed, it's still not dippinginto the part of that benefit,
the part of that income that youtruly need each month for your
living expenses.
If you maximize your benefit,you're going to have more
confidence, knowing that,whatever does come with Social
Security, you've got some margin.
You have some excess built inbetween what you absolutely have
to have to live and what yourincome is from Social Security,
(09:25):
so that some of those changeswon't have such a significant
impact on you if and when theydo happen.
So maximize your SocialSecurity benefit is one of the
best things that you can do toovercome some of these.
The second thing you should do,of course, is don't just have
Social Security, have savings,have investments.
Build up a portfolio that canalso create income for you to
help supplement your SocialSecurity income.
(09:46):
Now, the goal of your portfolioin many ways is to do exactly
what Social Security is doing,which is to say, can you
generate income from the timethat you retire to last you for
the rest of your life?
Well, that's what SocialSecurity does.
That's what your portfolioshould do.
The difference is this Withyour portfolio, there's far more
flexibility.
If you need to temporarilyincrease your income because you
(10:07):
just retired and you want totravel and you want to do fun
things, go ahead and increaseyour income.
If you need to decrease yourincome for a period of time
because the market's down oryou're not spending as much, go
ahead and decrease your income.
Maybe you have these one-offexpenses or an emergency or a
trip you want to take.
Take out one-time amounts fromyour portfolio.
So your portfolio, yes, shouldbe creating that income, just
like social security is.
(10:28):
But in addition to that,there's far more flexibility and
it gives you more options tochoose from, so you're not so
dependent upon just one incomesource in retirement.
And then the third thing thatyou can do is think about how
you might leverage your home.
For most people, their home istheir largest single asset.
That asset is wonderful, unlessyou're thinking about it from
the standpoint of how can youcreate income in retirement.
(10:50):
I don't care how valuable yourhome is if you're living there,
you're not going to createincome from your home.
Your home is an asset.
That's a wonderful asset.
But think about that forcontingencies.
If you are too dependent uponsocial security, if something
were to happen to your benefit,if you were to run out of
resources, how can you leverageyour home and your plan to be
okay?
(11:10):
Now, typically this is betterdone as a contingency than as
part of your normal financialplan, as part of your core
strategy.
But what are some things thatyou can do?
Could you downsize your home,unlock some of that equity to
create the income you need tolive the life you want to live?
Could you relocate to adifferent state In doing that?
That's a version of downsizing,of unlocking some of the equity
, but maybe it's also moving toa place that's a lower cost of
(11:32):
living.
Could you potentially get areverse mortgage?
And again, I'm not necessarilyrecommending this as plan A of
the starting point, but knowingthat you have this in case,
knowing that you have this inthe event that things don't go
as planned, a reverse mortgagecan potentially be a great tool.
It can also potentially be ahorrible tool, so be careful how
you use it, but these areoptions that you need to have as
(11:52):
you're looking at yourretirement, to say how can I
create the retirement I want tocreate without being too
dependent upon just my socialsecurity benefit?
Root Financial has not providedany compensation for and has not
influenced the content of anytestimonials and endorsements
shown.
Any testimonials andendorsements shown have been
(12:12):
invited, have been shared witheach individual's permission and
are not necessarilyrepresentative of the experience
of other clients.
To our knowledge, no otherconflicts of interest exist
regarding these testimonials andendorsements.
Hey, everyone, it's me againfor the disclaimer.
Please be smart about this.
Before doing anything, pleasebe sure to consult with your tax
planner or financial planner.
Nothing in this podcast shouldbe construed as investment tax,
legal or other financial advice.
(12:32):
It is for Retirement podcast.
If you want to see how RootFinancial can help you implement
the techniques I discussed inthis podcast, then go to
rootfinancialpartnerscom andclick start here, where you can
schedule a call with one of ouradvisors.
We work with clients all overthe country and we love the
(12:53):
opportunity to speak with youabout your goals and how we
might be able to help.
And please remember nothing wediscuss in this podcast is
intended to serve as advice.
You should always consult afinancial, legal or tax
professional who's familiar withyour unique circumstances
before making any financialdecisions.
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