Month: October 2025

For many retirees, Social Security is a key piece of the income puzzle. But when and how you claim your benefits can affect the amount you receive over time. A little strategy and planning can help you make the most of what you’ve earned.

• Know How Your Benefits Are Calculated

Your benefit amount is based on your 35 highest-earning years. If you haven’t worked that long, each missing year counts as zero—and that can drag down your average. Working additional years could increase your benefit amount, especially if you’re earning more now than you did earlier in your career. Those additional years can replace lower-earning ones and increase your overall payout.

• Understand Your Full Retirement Age

Your Full Retirement Age (FRA) is when you can collect 100% of your earned benefit. Depending on when you were born, it falls somewhere between 65 and 67. If you claim benefits before reaching FRA, you’ll receive a smaller monthly check—but wait a little longer, and your payments will grow.

• Time It Right

You can start collecting benefits at age 62, but you’ll only get about 70% of what you’re eligible for. Waiting until your FRA gets you the full amount, and if you hold off until age 70, you could receive as much as 132% of your benefit. Simply put: the longer you wait (up to age 70), the bigger your monthly check.

• Make the Most of Spousal Benefits

Married couples may be eligible for spousal benefits, which can be up to 50% of the higher earner’s benefit. Typically, the lower-earning spouse can start collecting earlier while the higher-earning spouse delays, allowing their future benefit amount to increase through delayed claiming. Once the higher earner hits 70, the couple can switch to filing against that person’s earnings history.

• Check Your Social Security Statements

Each year, the Social Security Administration (SSA) sends out statements showing your estimated benefits and your earnings history. It’s easy to toss it aside—but don’t! Reviewing your earnings record is important. Mistakes happen, and an error in reported income could reduce your benefit. If you spot something off, contact the SSA to get it corrected.

• Increase Your Earnings

If your projected benefits aren’t quite where you’d like them to be, consider finding ways to boost your income. A raise, a side job, or even working part-time for a few more years may increase your 35-year earnings average—and your future benefit.

• Be Careful If You Work in Retirement

You can work and collect Social Security at the same time, but there are income limits before you reach full retirement age. In 2025, if you earn more than $23,400, the SSA will deduct $1 in benefits for every $2 you earn over that limit. Once you hit full retirement age, the limit rises, and the reduction drops to $1 for every $3 earned over $62,160.

• Don’t Forget About Taxes

Up to 85% of your benefits may be taxable, depending on your income and filing status. Remember, Social Security counts alongside other income sources like wages, pensions, and investments. It may be a good idea to work with a tax or financial advisor to plan ahead and avoid surprises at tax time.

Social Security isn’t one-size-fits-all. The right claiming approach depends on your age, health, income, and long-term goals. Taking the time to understand your options—and making a plan that fits your situation—can help you make the most of your benefits and enjoy a more confident retirement.¹ God bless your Social Security maximization efforts!

Shaun

“Be wise as serpents and innocent as doves.” ~Matthew 10:16

1 Smart Asset, “10 Strategies to Maximize Social Security Benefits”, August 12, 2025

Disclosures

This material is provided for informational and educational purposes only and should not be construed as individualized investment, tax, or financial advice. The information contained herein is based on sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Social Security rules, tax laws, and benefit amounts are subject to change.

Old Forge Wealth Management, LLC is a registered investment advisor.  Registration does not imply a certain level of skill or training.

For personalized advice regarding your situation, please consult a financial, tax, or legal professional.

Mountaineers who fail to identify and effectively mitigate specific risks often become valuable examples for more studious climbers. Just as hypothermia, personal injuries, white-outs, slip-and-falls, avalanches, and crevasse falls threaten the mountaineering expedition, the following hazards endanger an equally challenging endeavor, the Retirement Income Plan. Identify and mitigate the following risks to help improve the sustainability of your retirement income and lifestyle:

1. Market Risk

Market fluctuations can significantly impact retirement portfolios, especially for those relying on investments to generate income. A major downturn can erode account balances just as retirees begin withdrawing funds. Diversification across asset classes and maintaining an appropriate mix of growth and defensive investments may help mitigate this risk.

2. Interest Rate Risk

Interest rate movements affect both bond values and the income retirees can earn from fixed-income investments. Rising rates can reduce the market value of existing bonds, while prolonged low rates can make it difficult to generate sufficient income safely. A laddered bond strategy or a mix of short- and intermediate-term instruments can provide balance and flexibility.

3. Sequence of Returns Risk

The order in which investment returns occur matters greatly in retirement. Experiencing negative returns early—while taking withdrawals—can permanently damage a portfolio’s longevity. Managing withdrawals strategically, holding a cash reserve, and using income “buckets” or guaranteed income sources can help offset this timing risk.

4. Inflation Risk

Even modest inflation erodes purchasing power over time. A dollar today won’t buy as much 20 years from now. Including assets that tend to outpace inflation—such as equities, real estate, or inflation-protected securities—coupled with a delay in Social Security benefits can help maintain the real value of income over time.

5. Long-Term Care Risk

The potential cost of extended care late in life poses one of the most significant threats to retirement security. Whether provided in-home or in a facility, long-term care expenses can quickly deplete savings. Options like long-term care insurance, hybrid life/LTC policies, or setting aside dedicated assets can provide protection.

6. Income Tax Risk

Future tax policy is uncertain. Rising federal or state taxes could reduce net retirement income, particularly from taxable accounts or required distributions. Proactive tax diversification—using a mix of taxable, tax-deferred, and tax-free accounts—offers flexibility to manage withdrawals efficiently under changing tax regimes.

The Bottom Line

A successful retirement plan isn’t just about growth—it’s about managing financial risks, much the way an accomplished climber manages mountain perils. By addressing these key threats with thoughtful diversification, flexible withdrawal strategies, and prudent contingency planning, retirees may increase their confidence that their income will endure as long as they do. Think about it and may God bless your planning efforts, Shaun.

“The prudent sees danger and hides himself, but the simple go on and suffer for it”. ~Proverbs 22:3

“Where there’s no guidance a person falls, but in an abundance of counselors there is safety”. ~Proverbs 11:14

Disclosure(s)

The information provided herein is for education purposes only and should not be construed as personalized investment, tax, or legal advice.  Investing involves risk, including the potential loss of principal.  Past performance is not indicative of future results.  Any strategies discussed may not be suitable for all investors and should be considered in the context of an individual’s financial circumstances and objectives.

Old Forge Wealth Management, LLC (“OFWM”) is a registered investment adviser located in Rhode Island.  Registration does not imply a certain level of skill or training.

Examples and opinions expressed are full illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any security.  All information is believe to be accurate at the time of publication but may change without notice.

Building wealth is less about luck and more about disciplined principles applied consistently over time. Below are ten foundational principles, each with practical examples to help guide your financial journey.

1. Increase Earning Power

Invest in yourself through ongoing education and specialization in your field.
Example: An engineer who earns additional certifications may qualify for higher-paying roles, increasing long-term income.

2. Carry Some Cash

Maintain an emergency fund of 6–12 months of household expenses. Keep cash in your portfolio to hedge downturns, seize opportunities, and stay disciplined.
Example: During a market dip, an investor with available cash can buy quality stocks at discounted prices.

3. Keep Debt Low

Strive for a low debt-to-equity ratio and aim to retire debt-free.
Example: A family that pays off their mortgage early frees up thousands in monthly cash flow for savings and investments.

4. Avoid Consumer Debt

Say no to impulse spending and ensure your household maintains a positive cash flow.
Example: Avoid financing a new car unnecessarily—opt for a reliable used vehicle and save the difference.

5. Invest 15–20% of Earnings

Regularly invest a portion of income using Dollar Cost Averaging in both equity and debt of capital-efficient businesses.
Example: Contributing monthly to an index fund smooths market volatility and builds long-term wealth.

6. Reinvest Dividends

Compound returns by reinvesting dividends from industry leaders over decades.
Example: A $10,000 investment in dividend-paying companies can multiply many times over if dividends are reinvested rather than withdrawn.

7. Protect Against Catastrophic Loss

Do thorough due diligence, diversify holdings, and maintain exit strategies for risky assets.
Example: A balanced portfolio of stocks, bonds, and real estate reduces the chance of a single market event wiping out wealth.

8. Manage Taxes Smartly

Plan to minimize lifetime taxes—pay more when in low brackets, and less when in high ones.
Example: Contributing to a Roth IRA while in a lower tax bracket can provide tax-free income in retirement.

9. Own the Right Insurance

Ensure you have the right type and amount of life insurance at the right price—avoid being “insurance-poor.”
Example: A young parent with term life insurance ensures family protection without overpaying for costly permanent policies.

10. Stay Disciplined Over Time

Wealth is built over years, not months. Commit to consistency, patience, and adaptability as circumstances change.
Example: A disciplined saver who invests steadily for 30 years often achieves financial independence regardless of market cycles.

These principles are not shortcuts—they are timeless guidelines. Applied consistently, they help individuals and families create resilience, seize opportunities, and ultimately achieve financial independence. Hold it loosely and God bless your efforts, Shaun.

“Give a portion to seven, or even eight, for you know not what disaster may happen on earth.”  ~Ecclesiastes 11:2

Disclosures:

The information provided in this blog is for educational purposes only and should not be construed as investment, legal, or tax advice. Investing involves risk, including the potential loss of principal, and past performance is not indicative of future results. Examples provided are hypothetical and for illustrative purposes only; they do not represent actual results and should not be relied upon for making financial decisions.

Old Forge Wealth Management, LLC is a registered investment adviser located in Rhode Island. Registration does not imply any level of skill or training. For advice specific to your personal circumstances, please consult a qualified financial professional.