It depends. Are having certain doctors a must for you or having certain plan benefits? Do you want a monthly premium or copays as you go along? Do you want to have no network or extra benefits?
In talking about retirement there are many factors besides money. So, besides assets, income and expenses, you also need to take into consideration your health, family dynamics and what will your new life purpose be?
Yes, you can get it at age 62 at a discount rate or at your “full retirement age” or you can even delay it till age 70, but you don’t won’t to look at Social Security by itself. You will want to coordinate it with your work, health and family life.
Of course, the goal is to take your assets and reinvest them to make money. Do you need the assets to accumulate or create a pension replacement income? How soon does that start? How long do you think it needs to last? Being aware of your expenses is necessary.
The real question is, how should I title my assets, where do you want them to go and who, what, where, when and why. And we must remember tax strategies for the spouse and next generation.
There are 2 Big Picture choices; 1st you pay a monthly premium whether you are using it or not, but you have security of complete coverage when you use it. 2nd, you have no premiums, but you have set copays when you use it, pay as you go. Both are good options, but people have a strong opinion on one or the other.
People are always focused on how much they can make. I understand that, but sometimes you just can’t make more than poor spending habits. We are now talking about 20-30 years retirement not 4-6 years. “If your outgo is more than your income, than your upkeep will be your downfall”.
You shouldn’t look at Social Security as if it is all by itself, it needs to be interwoven through the whole scheme of things. How long you will work, taxes, family, health history, and math, but it is not all about math.
People need to know there are 3 natural phases of money. Accumulation, you do not mind risk. Preservation, you don’t like risk as much anymore, and Distribution, you now must take the income. In retirement you should be at lower risk factor and have a guarantee of lifetime income. That is Priceless!
Wills and/or Trusts are important, but they are simply ways of titling your assets. Real Estate is different from banks, banks are different from brokerage accounts and they are not like insurance which is different from IRA accounts. Having your assets titled properly so they go to your loved ones NOT the attorneys or the government is the real question. Now how do you do that? See me!