Page 49 - Ready Set Retire

Ready. Set. Retire!

The B section represents the retirement collection years, where
both spouses are alive and getting maximum income from
Social Security. This is the area which, in most peoples’ minds,
must make up for the “loss” incurred by waiting.

The C section is the time after the primary worker has passed
away, and the spouse is receiving benefits. This may be the
most crucial part of the whole calculation as when the first
spouse passes, the second spouse steps into the larger of the
two benefits. The difference is stark: $339,924, assuming Linda
lives into her 90s and Tom dies in his 70s. That’s how much
extra Linda would receive in spousal benefits should she live
longer than the other. And this is true for both, as whichever
spouse dies first, the suviving spouse only gets the higher
benefit. The lower benefit is always lost.

Further, this income will last as long as either Tom or Linda
survives. This is key, as the longer one of them lives, the more money
they receive. This is the whole key to successful income planning.
Find sources of income that last as long as the people needing
it, and maximize that to the hilt.

The reason is the key to successful income planning is to
generate the maximum amount of income, defined as “regular,
steady and replenshable cash flow.” Unless it’s all of those, it runs
the chance of running out, because if it’s not replenishable, it

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