The Role of Social Security in Your Plan

If we get Social Security and that pushes us up into a higher tax bracket, there's never a point at which your marginal tax rate reaches 100%. So we'll still be better off if we do get it. What I recommend to folks is that you count it or don't count it kind of depending on your age now. If you're already over 55, there's a pretty good chance you're going to get it close to the levels that we're seeing now. And so counting on it, but maybe at a reduced level, like maybe 70% of what your expected current benefit is,.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

Our guest this week is Tanja Hester, whom The New York Times referred to as the matriarch of the FIRE movement. For the uninitiated, FIRE stands for financial independence/retire early. Tanja is the author of the Our Next Life blog, and she is also author of the book Work Optional: Retire Early the Non-Penny-Pinching Way. Tanja and her husband Mark retired in 2017 at the ages of 38 and 41. Her blog is devoted to chronicling their journey and sharing guidance for others who might be considering an early retirement.

Background

Tanja Hester’s blog “Our Next Life”

Tanja Hester’s bio and backstory

Tanja Hester’s twitter handle @ournextlife

Tanja Hester’s author/speaker page

Tanja Hester’s book, “Work Optional: Retire Early the Non-Penny-Pinching Way”

“For These Women, a FIRE That Burns Too Male and Too White” by Charlotte Cowles; The New York Times; June 7, 2019

Early Retirement/Sequence-of-Return Risk

Tanja Hester’s writings on sequence-of-return risk

Karsten Jaske’s “Early Retirement Now” blog

Tanja Hester’s multi-phase retirement financial plan

Savings and Withdrawal Rates