Social Security Tips and Q1 Investment Commentary

Which two things don’t necessarily go together?
A.  Hamburger and Fries
B.  Gin and Tonic
C.  Retirement and taking Social Security
D.  Queso and Chips

If you said C, you win! 

People often think of enrolling in Social Security and retirement as two levers to pull at the same time. Social Security benefits are not tied to when you retire. You should consider several factors before deciding when to apply for Social Security benefits. These include other retirement savings or benefits you have available to you, how long you expect to live in retirement, and whether you plan to continue working while drawing Social Security.

Here are some thoughts about Social Security to begin the conversation.

FRA (Full Retirement Age) – From a Social Security perspective, FRA (67 years of age for people born in 1960 or later) is the age at which earned income will not offset your Social Security benefit. This does not mean that you must be FRA to retire. 

Age 70: Apply by age 70. Your social security benefits do not increase after age 70.

Social Security benefits are structured so that if you live to about age 78-82 you should receive the same amount over your lifetime whether you start benefits early or later.

Starting Social Security early – Starting Social Security before FRA reduces your benefits, but you'll also receive monthly checks for longer. If family history or current health imply that your life expectancy is less than the average, then it might make sense to start receiving Social Security benefits early.

Delaying Social Security - If you think you'll beat the average life expectancy and your income stream allows, it is wise to delay claiming Social Security to get a larger monthly benefit.
Your decision is important and irrevocable, which is why we prefer to counsel our clients before they sign up. Social Security recommends contacting them six weeks before you would like to receive your first check, so having your strategy in place early is beneficial. If you would like to discuss this in more detail, please let us know! This is a service we are happy to provide to our clients.

Also, please click here to view the 2022 Q1 Investment Commentary prepared by our asset management team at Northwest Asset Management.


Cass, Megan, and Bleckley

Looking for statements or tax documents? Visit our web page for links to Fidelity (for access to statements and tax documents) and to the Orion portal (for access to performance reports and billing statements): Watercolor Financial Group website

Pet Portrait Contest
Cass is taking a pet portrait class and needs some cute pictures of your dog, cat, guinea pig, or pig to paint in acrylic. If you would like for your pet to be considered, please email Cass at [email protected]. Include a clear close up photo of your pet, and his or her name. She will draw the winner’s name and will paint their portrait. We will share the results in an upcoming newsletter. 

Watercolor Financial Group provides advisory services through NWAM, LLC, dba Northwest Asset Management, an SEC registered investment adviser. Cass Grange, Megan Poore, and Bleckley Dobbs are investment advisor representatives of NWAM, LLC. Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements. This material is intended to provide general financial education and is not written or intended as tax or legal advice