A Note on Social Security

Also, do not forget that you have been putting money into an annuity for years in the form of social security.  While the doomsayers predict that it will collapse and go away, I believe that it will not hedge inflation well and that benefits will remain relatively flat.  If you are the type of person that can live on a strict budget and have few bills remaining in retirement, then you may be able to use your social security as a cash income guarantee and not take money out of your investments during bad times in the markets.  A vital hedge against inflation may be delaying your retirement age so that your monthly social security payment will be higher.  This strategy is especially attractive for women because women tend to live longer than men do and inflation will be a more significant factor for them.

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