When I was in High School, my health teacher (and lacrosse coach) once wrote the word Assume on the blackboard. He said “when you assume, you make an Ass out of U and Me”, as he separately underlined the three parts of the word. You could have heard a pin drop – even in a class where we had watched a film of a baby being born. Teachers didn’t say Ass back then – at least not in class, although on the lacrosse field his language was frequently a bit more colorful.
Once we all got over the shock, I realized there was wisdom on the blackboard. What he was really trying to convey is Knowledge Is Power. However, I doubt if he had written that on the board, I would remember it decades later. I also now realize if he had trademarked the U as a synonym for You, he would have made a killing when texting was ultimately invented.
It involves getting a verification confirmation via snail mail, so it can take a few weeks. However, once you are registered you can log on and get your info any time, which you should do annually, even if just to check the accuracy of their records. It’s important to know where you stand and incorporate reality into your planning.
I am sharing this wisdom to emphasize the importance of knowing the facts of where you stand financially. This is a cornerstone of the Financial Planning process.
One assumption many of our clients and friends often make is what their Social Security benefit will be when they begin to collect. While claiming strategy is often a complex decision, your estimated benefits should not be a guess. An inaccurate assumption here can really harm your retirement plan. It’s information we will collect from every Financial Planning client. Whether you retain a Financial Planner or do it yourself, you can get this information.
The Social Security Administration sends out an annual statement (SSA-7004) to all taxpayers over the age of 60. That’s a bit late to start incorporating that info into your planning. Everyone can get one by going here: www.ssa.gov/myaccount. The registration process is cumbersome as it combines government bureaucracy and inefficiency with the financial sectors fraud paranoia. You will need a Drivers License, and verifiable street and email addresses. The DNA sample requirement proposal did not pass the Congress.
It involves getting a verification confirmation via snail mail, so it can take a few weeks. However, once you are registered you can log on and get your info any time, which you should do annually, even if just to check the accuracy of their records. It’s important to know where you stand and incorporate reality into your planning.
The Bottom Line: Knowledge Is Power In Your Financial Planning.
–Michael Ross, CFP®