3 Things 4-27-26

 Thing One

When Should You Take Social Security? A Practical Framework for Making the Right Decision

One of the most important financial decisions you will make heading into retirement is when to begin taking Social Security. Many people approach this decision with the goal of “getting the most,” but the reality is that the right answer depends on how long you live and how this income fits into your broader plan.

A simple way to evaluate this decision is through a break-even analysis. Consider the following example:

• Age 62: $1,800 per month

• Age 67: $2,400 per month

• Age 70: $3,000 per month

At first glance, delaying benefits appears attractive due to the higher monthly income. However, delaying also means giving up years of payments. The question becomes: how long does it take to recover what you gave up?

If benefits begin at age 62, income is received for five additional years before age 67.

$1,800 × 12 × 5 = $108,000

By waiting until 67, that $108,000 is forfeited. In return, the monthly benefit increases by $600.

$2,400 − $1,800 = $600

To recover the $108,000:

$108,000 ÷ $600 = 180 months, or 15 years

Break-even age: 82 

Delaying from 67 to 70 means giving up three years of income.

$2,400 × 12 × 3 = $86,400

The monthly benefit increases by another $600.

$3,000 − $2,400 = $600

To recover the $86,400:

$86,400 ÷ $600 = 144 months, or 12 years

Break-even age: 82

Taking benefits at 62 instead of 70 provides eight additional years of income.

$1,800 × 12 × 8 = $172,800

The monthly increase at 70 is $1,200.

$3,000 − $1,800 = $1,200

To recover the $172,800:

$172,800 ÷ $1,200 = 144 months, or 12 years

Break-even age: 82

Across each scenario, the break-even point consistently centers around age 82.

This leads to a simple but powerful takeaway:

If you live beyond approximately age 82, delaying benefits can result in greater lifetime income. If you do not, taking benefits earlier may provide more total income over your lifetime. The mistake is treating this as a one-variable decision. In reality, Social Security should be coordinated with:

• Other income sources

• Investment strategy

• Tax planning

• Health and longevity expectations

• Spousal and survivor considerations

Maximizing a monthly benefit is not the same as maximizing your overall retirement outcome. Instead of asking, “What age gets me the biggest check?” a better question is:

“How does this decision fit into the rest of my financial life?”

For some, taking benefits earlier provides flexibility, reduces portfolio pressure, and allows them to enjoy retirement sooner. For others, delaying creates a larger guaranteed income stream later in life, helping hedge longevity risk.

There is no one-size-fits-all answer, but there is a right answer based on your situation. If you are approaching this decision and want to evaluate it in the context of your full financial picture, it is worth having a structured conversation before making a permanent choice.

Thing Two  

Why You Should Set Up Your Social Security Account Before Someone Else Does

Most people do not think about their Social Security account until they are close to retirement. Unfortunately, that delay can create an opening for fraud. Identity theft tied to Social Security benefits is not hypothetical. It happens, and it often starts in ways that feel completely unrelated to your retirement.

Many people assume their Social Security number is private and secure. In reality, it has likely been exposed more than once. Large-scale data breaches have impacted millions of Americans over the years. Companies like Equifax, Target, and Anthem have all experienced breaches where sensitive personal data was exposed. These incidents often include names, addresses, dates of birth, and in some cases Social Security numbers. When news of these breaches breaks, many people assume it does not affect them directly. But that assumption is often incorrect. Even if your data was part of a breach years ago, it can still circulate. That is where the dark web comes in.

Stolen data is frequently packaged and sold on underground marketplaces. A full identity profile, sometimes called a “fullz,” can include your name, Social Security number, date of birth, and other identifying details. These profiles are bought and sold repeatedly, often for relatively small amounts of money.

In other words, your information does not need to be “hacked today” to be used against you tomorrow. It may already be available. Once a fraudster has enough personal information, they look for opportunities where no account has been claimed yet. Social Security is one of those opportunities.

If you have not created your account at SSA.gov, a fraudster may attempt to:

• Register an account in your name using your personal information

• Set up login credentials tied to their own email or phone number

• Attempt to redirect benefit payments once you become eligible

• Change direct deposit information if access is gained later

In some cases, individuals only discover the issue when they try to apply for benefits and are told an account already exists or payments have already been initiated. At that point, resolving the problem can take time, documentation, and significant effort. Establishing your Social Security account early is a simple but powerful way to protect yourself.

When you create your account:

• You secure your identity within the system before someone else can

• You control the login credentials and recovery options

• You reduce the risk of unauthorized account creation

It is similar to claiming your name online before someone else does.

There are also practical planning advantages:

• You can review your earnings history for accuracy

• You can monitor your estimated future benefits

• You can catch reporting errors early, when they are easier to fix

Setting up your account takes only a few minutes, but it closes a door that fraudsters actively look for. In an environment where personal data is frequently exposed, reused, and resold, it is no longer enough to assume your information is safe simply because you have not shared it recently. Taking action now helps ensure that your benefits remain under your control when you need them.

Thing Three

Just A Thought  

"If there's something you can do about it, don't worry; if there's nothing you can do about it, don't worry." - the Dali Lama