Is Social Security planning and income planning the same thing, or mutually exclusive? You might be looking at this question and thinking to yourself, “What kind of question is that? Of course they are the same.” To you, I would say I agree with that statement. Here’s the issue, though: a lot of financial professionals act as if they are mutually exclusive. In other words, their actions do not follow their words.
Financial professionals that like to use Social Security seminars as a means of marketing are doing so to get people in to talk about financial products and really don’t care about when the client turns on their Social Security—or even worse—they don’t care how it affects them in the long run. True financial professionals care about all things that can affect a client’s income, both now and in the future. So, financial professionals should look at all forms of income and how it will affect the client today, tomorrow, and ten years from now. They need to look at taxes, additional spending possibilities, long-term care possibilities, death of a spouse, long life expectancy, etc. It is more than just getting a good rate of return or making sure they have guaranteed income. These are all pieces to the larger puzzle that is income planning.