[Music] all right Andrew does have another question for you if you're ready for it ma' he says why do you guys not count Social Security as a source like in retirement is it because it may not be there when younger listeners reach that point or is there another reason that you don't include it you want to go you want me to go well when he says Source I mean cuz we do if you are close to retirement there's a reason we say hey go figure out what your expenses are in retirement net out any cash flow promises those can be pensions those can be Social Security and then that's what you can figure out what you're going to need from your portfolio assets to provide a good retirement however for any of my listeners in their 20s 30s or 40s when we're figuring out hey we don't know where the moving Target's going to land on your savings objectives why don't you get to 25% of your gross income as fast as possible I know that's

hard for your 20s. That's aspirational, but still, that's why we don't put a lot of emphasis on social security and other things because it's more of a planning of cash flows and retirement. Whereas when you're young, you need to be putting as much money as you can to work for you. Yeah, I would say we want you to control what you can control. And realistically, you cannot control, especially if you're a younger person, what Social Security reform in the future might look like. And so, do we factor it in, Andrew? 100%. Like, you know, we are fee-only financial advisers by day. And so, when we're counseling someone through entering into retirement, and when we're looking at Monte Carlo analysis, and when we're actually going through the work of determining can they retire, and is their plan going to sustain, we absolutely factor in Social Security. And we'll do it, you know, we'll do Social Security, and we'll do conservative cost of living adjustments, and we'll look at different strategies.

between spouses claiming at different times, and then we can even do, okay, what if there's a reduction? How does that factor in the plan? So, we for sure consider it as a source, but for a young person, I'm going to say young is really anyone below 40, I think in this context probably even 45. Even 45, I would not bank on it being a source just because you don't know what it's going to look like. CU, let's say that you do all the things right, and everything goes just as you had planned, but then Social Security at some point in the future becomes means-tested. They say, Okay, well above a certain level, we're not going to qualify, or whatever. You want to make sure that the work that you've put into building for financial independence stands on its own without Social Security. I'd hate for you to say, I'm going to save the minimum amount so that I can live the minimum viable life that I want in retirement so long as Social Security is there, and then it changes.

and then your expectations are much different than the reality of what your expectations were. It's much different than what you thought they would be.

Why Don’t You Count Social Security as a Source? Is It Really Going Away?

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