Ways To Supplement Social Security

Social security is designed to replace a portion of a person’s income in retirement but only a fraction of their average monthly earnings. That’s why finding ways to supplement social security is crucial to ensuring you enjoy a comfortable retirement rather than live benefit check to benefit check. Contact Alloy Wealth Management to speak with one of our fiduciary financial planners who will advise you on the various ways to create income in retirement including fixed income annuities, insurance, and investments.

When determining how much you’ll need to live well in retirement, consider your current lifestyle and monthly bills and don’t forget about the cost of health care and any taxes you may need to pay on your social security benefits. Those who file their federal tax return as an individual and who’s combined income exceeds $25,000, and those filing a joint return and have a combined income of more than $32,000 will pay taxes on their social security benefits. Anyone married and filing separately will likely have to pay taxes on their benefits as well.

Certain investments like stocks, bonds, annuities, mutual funds, and real estate generate income in retirement yet the interest earned from those investments will also need to be taxed. With careful planning, choosing to work a part-time job while retired will be a choice and not a necessity. For tax planning advice and ways to supplement social security benefits in retirement, contact Alloy Wealth Management at 800-689-3935.