{"id":15487,"date":"2019-09-20T14:38:23","date_gmt":"2019-09-20T14:38:23","guid":{"rendered":"https:\/\/fi-nancialplanner.com\/?p=15487"},"modified":"2019-09-20T14:38:28","modified_gmt":"2019-09-20T14:38:28","slug":"include-social-security-in-my-fire-plan","status":"publish","type":"post","link":"https:\/\/fi-nancialplanner.com\/index.php\/2019\/09\/20\/include-social-security-in-my-fire-plan\/","title":{"rendered":"Should I Include Social Security in My FIRE Plan?"},"content":{"rendered":"\n

When you’re planning for FIRE, should you include income from Social Security in your projections? Well, today I aim to answer that question by talking about what I consider to be the worst case scenario: the Social Security Administration makes a unilateral cut to the benefit payouts.<\/p>\n\n\n\n

I talk about how much that would be and why I think you should include some level of social security income in your retirement plan.<\/p>\n\n\n\n

Additionally, I talk about the tax implications of receiving social security benefits while you’ve got other income, whether portfolio income or earned income. In 2019, if your “combined income” of 1\/2 of the social security benefit and your other income sources is above $44,000, then 85% of your social security benefit can be taxed, at ordinary tax rates. <\/p>\n\n\n\n

The math on that could look like this: $10,000 of social security benefits, 8,500 are taxable at 22%, or $1,870 in tax.<\/p>\n\n\n\n

If you’d like to dig into the details of your own situation, please schedule a call so we can get into the specifics together!<\/p>\n\n\n\n

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