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Bogleheads On Investing Podcast

Episode 007: Mike Piper, host Rick Ferri

Mar 6, 2019
Mike Piper, a licensed CPA and author of the popular Oblivious Investor blog, shares his expertise on Social Security and retirement planning. He discusses the historical evolution of Social Security, emphasizing its complex nature as an insurance program and not just a retirement account. Topics include strategic marital considerations for benefits, the importance of timing claims to maximize income, and the implications of policy changes ahead of the trust fund depletion. Piper also dives into spousal benefits and filing strategies for couples, providing valuable insights for all investors.
50:00

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Understanding the intricacies of Social Security, including benefits tied to earnings history and claiming age, is essential for effective retirement planning.
  • The Open Social Security Calculator serves as a practical tool for individuals to explore different claiming strategies and optimize their retirement income.

Deep dives

The Evolution of Social Security

Social Security was established in 1935 and initially provided only retirement benefits, with spousal, survivor, and disability benefits added in subsequent decades. Over the years, Social Security has adapted to changing societal needs, including automatic inflation adjustments introduced in 1972, and modifications in retirement entry age that began in 1983. The program aims to serve as a social insurance mechanism rather than simply a retirement fund, emphasizing that benefits do not solely hinge on prior contributions. This perspective is crucial for understanding the broader role Social Security plays in ensuring financial stability for individuals during their retirement years.

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